Dynamic Knowledge Management Capabilities for Successful Product Eco‐Innovation

ABSTRACT This study explores how dynamic capabilities—specifically knowledge management, knowledge capacity, agility, information capabilities and resilience—support successful eco‐innovation in product development. Grounded on the dynamic capability framework, the research introduces the IKARG model (Information, Knowledge Management, Agility, Resilience, and Green Innovation), analysing its application in a quantitative study of 260 industrial firms. Structural equation modelling (SEM) reveals that knowledge‐based dynamic capabilities significantly enhance organisational resilience and agility, both of which positively impact green product success. Findings underscore the importance of agile and resilient knowledge management systems in responding effectively to environmental and market changes, thus fostering sustainable competitive advantage. This study contributes to literature by offering empirical evidence and a novel integrative model that connects dynamic capabilities to eco‐innovation. Practical implications highlight the need for businesses to invest in knowledge management and digital infrastructure to enhance adaptability and sustainability. Future research should examine the IKARG model across diverse sectors and explore the potential of emerging technologies to amplify agility and eco‐innovation.