Linking knowledge acquisition, knowledge dissemination, and manufacturing SMEs’ sustainable performance: the mediating role of knowledge application

Purpose This study aims to examine the impact of knowledge acquisition and dissemination on the sustainable performance of small- and medium-sized enterprises (SMEs). Additionally, the mediating role of knowledge application in this relationship is investigated. Design/methodology/approach Data collected from 428 manufacturing SMEs in Malaysia were analyzed using the partial least squares structural equation modeling approach. Findings The results reveal that knowledge acquisition significantly impacts the sustainable performance of manufacturing SMEs, and knowledge application partially mediates this impact. Cutting-edge knowledge from within or outside the organization enables a deeper understanding of information regarding new products/services, a list of competing suppliers, consumer preferences and so on. Research limitations/implications This study combined the knowledge-based view theory and the triple bottom line framework into a unified conceptual framework and examined the impact of knowledge acquisition and dissemination on manufacturing SMEs’ sustainable performance as well as the mediating role of knowledge application on manufacturing SMEs’ sustainable performance. Practical implications Manufacturing SMEs should emphasize knowledge application in business operations and encourage employees to develop and enhance their knowledge acquisition and dissemination to leverage knowledge in ways that enhance business operations, produce new products and generate new knowledge assets. Originality/value This study is unique in that it highlights the partially mediated effects of knowledge application on the linkages between knowledge acquisition and manufacturing SMEs’ sustainable performance and the fully mediated effects of knowledge application on the association between knowledge dissemination and sustainable performance of manufacturing SMEs.