Green Knowledge Management and Sustainable Banking Performance: The Mediating Role of Knowledge-Oriented Organizational Culture

Abstract

Purpose: The increasing focus on environmental sustainability, responsible finance has also made banks consider implementing green practices in their operations. Green Knowledge Management (GKM) has emerged as an important mechanism to incorporate sustainability in the strategic and operational decisions. However, there are very limited studies that specify how GKM can actually lead to sustainable banking performance. The study examines the effects of GKM on sustainability performance and hypothesizes whether knowledge based organizational culture mediates the effects of GKM. Design/Methodology: A quantitative, cross-sectional survey with a structured questionnaire was given to the managers and staff of commercial and Islamic banks. Among the 600 people invited to fill the questionnaire, 398 people replied to it and can be seen as valid data to study. The use of online survey was made because the findings will be applicable in various organizational contexts. Besides, the researchers made physical visits to collect supplementary information. Participants were recruited using personal and professional circles; the survey link and the QR code were sent to the consenting participants through WhatsApp and email. The measurement of opinions was done on a scale of five where strongly disagree =1 and strongly agree =5. Partial Least Squares Structural Equation Modeling (PLS-SEM) was utilized in testing the measurement model, hypothesized relationships and mediations. Findings: reveal that, GKM plays a very strong positive role in sustainable banking performance on environmental, social, and economic levels. It is also found that the relationship is strongly mediated by a knowledge-based organizational culture which suggests that the banks with strong knowledge sharing and learning cultures are more likely to transform green knowledge into sustainability outputs.

Originality/Value The present research pays to the frame of sustainable banking research by illustrating empirically that organizational culture is associated with GKM in terms of sustainability performance. The results will offer practical tips to the banking leaders who desire to enhance ESG outcomes by using knowledge-based and culture-based approaches.

Keywords Green Knowledge Management; Sustainable Banking Performance; Knowledge-Oriented Culture; Banking Sector; Sustainability; ESG