Knowledge management view of environmental sustainability in manufacturing SMEs in the Philippines

Abstract

This study highlights the role of knowledge management (KM) in enabling small and medium enterprises (SMEs) in a manufacturing industry in a developing country to engage in environmentally sustainable business. Drawing on the knowledge-based view of the firm, it argues that resource-constrained SMEs rely on their relational capital to augment their capability to innovate in order to find better and environmentally sound ways of doing business. However, SMEs need to harness their KM orientation in order to leverage the knowledge-based resources emanating from their relational capital towards building their innovation capability. This capability is essential in integrating effective environmental management practices in business. The findings from our analysis of data from a survey of 241 manufacturing SMEs in the Philippines support these hypotheses and underscore the importance of developing an organisational capability to engage in KM in order to adopt sustainable business practices. The implications of the findings are also discussed.

Keywords:

• knowledge management orientation
• sustainable business
• social capital
• innovation
• environmental practices
• developing country

Additional information

Notes on contributors

Banjo Roxas

About the Author

Banjo Roxas is a Senior Lecturer in Management at Deakin Business School, Deakin University. His teaching and research interests are in Strategy and International Business.

Doren Chadee

Doren Chadee is a Professor and Chair in Management at Deakin Business School, Deakin University. His teaching and research interests are in Strategy and International Business.