Purpose This study aims to examine how green strategy and green practices translate into firm performance through the interplay of risk-related dispersed knowledge management (DKM) and enterprise risk management (ERM). It investigates whether sustainability-oriented intent and operational initiatives generate value through a sequential capability-building process linking DKM and ERM. Design/methodology/approach Drawing on the knowledge-based view, a chain mediation model was developed and tested. Data were collected from innovative firms operating within ecosystems highly exposed to green transition pressures. Partial least squares structural equation modeling with bootstrapping was employed to assess direct, indirect and sequential mediation effects. Findings Results indicate that green strategy enhances firm performance primarily through a sequential mechanism where DKM strengthens ERM. Green practices play important role in activating risk governance. Effect size analysis confirms the dominance of the sequential knowledge-based pathway. Research limitations/implications The single-country, cross-sectional design limits generalizability. Future research should explore diverse institutional contexts, incorporate objective performance metrics, and examine additional organizational capabilities that complement DKM and ERM. Practical implications Sustainability-oriented strategies yield superior results when supported by structured risk-knowledge processes. Firms should formalize mechanisms to coordinate dispersed risk knowledge across units to improve ERM maturity and maximize the strategic value of green initiatives. Originality/value This study advances the knowledge-based view by demonstrating that green strategy’s performance effects depend on a sequential process where DKM enables ERM. It introduces an integrated chain-mediation perspective to clarify how dispersed knowledge transforms green intent into organizational value.
Gorzeń-Mitka et al. (Wed,) studied this question.