Sustainable Innovation and Business Success: The Mediating Roles of Information Technology Capability and Knowledge Management

In this study, we aimed to examine the relationships between Sustainable Innovation (SI), Business Success (BS), Information Technology Capability (ITC), and Knowledge Management (KM) in Small and Medium Enterprises (SMEs) in Saudi Arabia. Adopting a quantitative research approach within a positivist framework, the study involved a purposive sample of 180 officials from Saudi Arabian SMEs. Data was collected using a structured survey and analyzed using Covariance-Based Structural Equation Modeling (CB-SEM) to assess variable interactions. Our findings revealed that sustainable Innovation did not directly impact Business Success significantly. However, it significantly positively influenced both Information Technology Capability and Knowledge Management. Further, ITC and KM significantly enhanced Business Success, suggesting their vital roles as mediators. These results underscore the indirect yet pivotal impact of Sustainable Innovation on Business Success through the enhancement of technological capabilities and knowledge management practices, offering crucial insights for SMEs in Saudi Arabia to leverage sustainable innovation effectively.