This research aims to empirically examine the role of learning organization practices in enhancing sustainable organizational performance, utilizing knowledge management and innovation capability as mediating variables. The study was conducted in public IT companies across China, which is a vital sector for driving innovation and economic growth. A mixed-methods approach was employed, with quantitative methods accounting for 70% and qualitative methods for 30% of the research. Purposive sampling was utilized to distribute questionnaires to 546 employees from 10 public IT companies. Statistical analysis was conducted using Structural Equation Modeling (SEM). The findings indicate that learning organization practices significantly influence knowledge management practices (β = 0.785, p < 0.001) and innovation capability (β = 0.405, p < 0.001). Furthermore, knowledge management practices positively contribute to sustainable organizational performance (β = 0.541, p < 0.001), while innovation capability also has a positive effect (β = 0.143, p < 0.001). Moreover, knowledge management practices partially mediate the relationship between learning organization practices and sustainable performance, with a total effect of 0.788 (p < 0.001). The mediating role of innovation capability is also significant, with a total effect of 0.422 (p = 0.045). The study further includes qualitative in-depth interviews with 20 managers from 10 IT companies across five regions in China: East, South, West, North, and Central. Senior managers were selected through a stratified sampling method to ensure comprehensive representation by including both the largest and smallest companies in each region. These findings underscore the critical role of learning organizations in promoting sustainability through effective knowledge management and innovation capabilities within the IT sector.

Abdelaziz, M. A. A., Wu, J., Yuan, C., et al. (2023). Unlocking supply chain product and process innovation through the development of supply chain learning capabilities under technological turbulence: Evidence from Egyptian SMEs. Journal of Manufacturing Technology Management, 34(5), 793–819. https://doi.org/10.1108/jmtm-11-2022-0395

Abdul-Rashid, S. H., Sakundarini, N., Raja Ghazilla, R. A., et al. (2017). The impact of sustainable manufacturing practices on sustainability performance. International Journal of Operations & Production Management, 37(2), 182–204. https://doi.org/10.1108/ijopm-04-2015-0223

Acevedo, J., & Diaz-Molina, I. (2022). Learning organizations in emerging economies: the effect of knowledge management on innovative culture in Chilean companies. The Learning Organization, 30(1), 37–54. https://doi.org/10.1108/tlo-01-2021-0009

Adinata, A., Sholahuddin, M., Kuswati, R., et al. (2023). The Influence of Innovation Capability and Entrepreneurship Capability on E-Marketing Performance, Mediated by Competitive Advantage, to Enhance Culinary SMEs in Ponorogo. Journal of Humanities and Social Sciences Studies, 5(12), 130–139. https://doi.org/10.32996/jhsss.2023.5.12.15

Akgün, A. E., Keskin, H., Aksoy, Z., et al. (2022). The mediating role of organizational learning capability and resilience in the error management culture-service innovation link and the contingent effect of error frequency. The Service Industries Journal, 43(7–8), 525–554. https://doi.org/10.1080/02642069.2022.2062328

Akhtar, N. (2023). Unlocking the Potential: The Impact of Innovative Capability on Process, Product, and Market Innovation and Firm Performance. Marketing and Management of Innovations, 14(2), 19–33. Internet Archive. https://doi.org/10.21272/mmi.2023.2-03

Ali, M., Arafah, W., & Martadisastra, D. (2023). The Effect of Knowledge Management System and Strategic Management Orientation on Organizational Tni Al Commitment in Ship Building Diving in the Land of Water Mediated by Dynamic Capabilities. Journal of economics, finance and management studies, 06(04). https://doi.org/10.47191/jefms/v6-i4-29

Asril, N., Zulkifli, Z., & Putriana, L. (2023). Building Sustainable Business Excellence Through Knowledge Management, Innovation, Learning Agility, Talented HR, Organizational Culture as Mediator. JETISH: Journal of Education Technology Information Social Sciences and Health, 2(2), 750–769. https://doi.org/10.57235/jetish.v2i2.498

Atanasijević, S., Zahar, M., Rančić, D., et al. (2023). Enabling digital growth through continuous education of project managers: A framework for collaborative, complementary, sustained, and simultaneous learning in software engineering organizations. Vojnotehnicki Glasnik, 71(4), 1172–1197. https://doi.org/10.5937/vojtehg71-46100

Azra, A. (2023). Role of Innovation Management Practices in Enhancing Firm Agility and Adaptability during Times of Crisis in Turkey. International Journal of Strategic Management, 2(2), 12–22. https://doi.org/10.47604/ijsm.2185

Baeshen, Y., Soomro, Y. A., & Bhutto, M. Y. (2021). Determinants of Green Innovation to Achieve Sustainable Business Performance: Evidence From SMEs. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.767968

Banoğlu, K., Vanderlinde, R., Çetin, M., et al. (2022). Role of School Principals’ Technology Leadership Practices in Building a Learning Organization Culture in Public K-12 Schools. Journal of School Leadership, 33(1), 66–91. https://doi.org/10.1177/10526846221134010

Ben Moussa, N., & El Arbi, R. (2020). The impact of Human Resources Information Systems on individual innovation capability in Tunisian companies: The moderating role of affective commitment. European Research on Management and Business Economics, 26(1), 18–25. https://doi.org/10.1016/j.iedeen.2019.12.001

Cassia, A. R., Costa, I., & de Oliveira Neto, G. C. (2022). Assessment of the effect of IT infrastructure on the relationship between knowledge sharing and technological innovation capability: survey in multinational companies. Technology Analysis & Strategic Management, 36(5), 1016–1036. https://doi.org/10.1080/09537325.2022.2069005

Chatterjee, S., Chaudhuri, R., & Vrontis, D. (2021). Knowledge sharing in international markets for product and process innovation: moderating role of firm’s absorptive capacity. International Marketing Review, 39(3), 706–733. https://doi.org/10.1108/imr-11-2020-0261

Chen, K.-Y., Altinay, L., Chen, P.-Y., et al. (2021). Market knowledge impacts on product and process innovation: evidence from travel agencies. Tourism Review, 77(1), 271–286. https://doi.org/10.1108/tr-05-2020-0209

Chen, S., & Zheng, J. (2022). Influence of Organizational Learning and Dynamic Capability on Organizational Performance of Human Resource Service Enterprises: Moderation Effect of Technology Environment and Market Environment. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.889327

Cong, P. T. (2023). The Role of Knowledge Management and Green Innovation in Sustainable Performance. IRASD Journal of Management, 5(3), 161–176. https://doi.org/10.52131/jom.2023.0503.0115

Cosenz, F., Noto, G., Cavadi, G., et al. (2024). Pursuing sustainable performance in healthcare organizations: a sustainable business model perspective. Journal of Health Organization and Management, 38(5), 741–759. https://doi.org/10.1108/jhom-12-2023-0369

Do, H., Budhwar, P., Shipton, H., et al. (2022). Building organizational resilience, innovation through resource-based management initiatives, organizational learning and environmental dynamism. Journal of Business Research, 141, 808–821. https://doi.org/10.1016/j.jbusres.2021.11.090

Douglas, S., & Haley, G. (2023). Connecting organizational learning strategies to organizational resilience. Development and Learning in Organizations: An International Journal, 38(1), 12–15. https://doi.org/10.1108/dlo-01-2023-0018

Faulks, B., Song, Y., Waiganjo, M., et al. (2021). Impact of Empowering Leadership, Innovative Work, and Organizational Learning Readiness on Sustainable Economic Performance: An Empirical Study of Companies in Russia during the COVID-19 Pandemic. Sustainability, 13(22), 12465. https://doi.org/10.3390/su132212465

Finnestrand, H. (2023). Creating a learning organization through a co-generative learning process – a Nordic perspective. The Learning Organization, 30(3), 326–338. https://doi.org/10.1108/tlo-09-2021-0109

Gonçalves, T., Curado, C., & Martsenyuk, N. (2023). When do we share knowledge? A mixed-methods study of helping behaviors and HR management practices. Business Process Management Journal, 29(2), 369–392. https://doi.org/10.1108/bpmj-08-2022-0395

Hair, J. F., Ringle, C. M., & Sarstedt, M. (2013). Partial Least Squares Structural Equation Modeling: Rigorous Applications, Better Results and Higher Acceptance. Long Range Planning, 46(1–2), 1–12. https://doi.org/10.1016/j.lrp.2013.01.001

Harikannan, N., Vinodh, S., & Antony, J. (2023). Analysis of the relationship among Industry 4.0 technologies, sustainable manufacturing practices and organizational sustainable performance using structural equation modelling. The TQM Journal.

Herghiligiu, I. V., Robu, I.-B., Istrate, M., et al. (2023). Sustainable Corporate Performance Based on Audit Report Influence: An Empirical Approach through Financial Transparency and Gender Equality Dimensions. Sustainability, 15(18), 14033. https://doi.org/10.3390/su151814033

Hu, L., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal, 6(1), 1–55. https://doi.org/10.1080/10705519909540118

Idrees, H., Hynek, J., Xu, J., et al. (2022). Impact of knowledge management capabilities on new product development performance through mediating role of organizational agility and moderating role of business model innovation. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.950054

Inthavong, P., Rehman, K. U., Masood, K., et al. (2023). Impact of organizational learning on sustainable firm performance: Intervening effect of organizational networking and innovation. Heliyon, 9(5), e16177. https://doi.org/10.1016/j.heliyon.2023.e16177

Iqbal, Q., & Ahmad, N. H. (2020). Sustainable development: The colors of sustainable leadership in learning organization. Sustainable Development, 29(1), 108–119. Portico. https://doi.org/10.1002/sd.2135

Ismail, M. (2005). Creative climate and learning organization factors: their contribution towards innovation. Leadership & Organization Development Journal, 26(8), 639–654. https://doi.org/10.1108/01437730510633719

Jawaad, M., Hasan, T., Amir, A., et al. (2022). Exploring the impact of green human resource management on firm sustainable performance: roles of green supply chain management and firm size. Journal of Management & Organization, 30(3), 673–695. https://doi.org/10.1017/jmo.2022.68

Jilani, M. M. A. K., Fan, L., Islam, M. T., et al. (2020). The Influence of Knowledge Sharing on Sustainable Performance: A Moderated Mediation Study. Sustainability, 12(3), 908. https://doi.org/10.3390/su12030908

Johnson, W. H. A., Bicen, P., & Zhu, Z. (2023). Being lean: Conceptualizing and operationalizing the Lean Innovation Capability (LIC) of innovative companies. Technovation, 126, 102794. https://doi.org/10.1016/j.technovation.2023.102794

Ju, B., Lee, Y., Park, S., et al. (2021). A Meta-Analytic Review of the Relationship Between Learning Organization and Organizational Performance and Employee Attitudes: Using the Dimensions of Learning Organization Questionnaire. Human Resource Development Review, 20(2), 207–251. https://doi.org/10.1177/1534484320987363

Kartiraharjo, H., & Isfianadewi, D. (2022). Enhancing competitive advantage through knowledge sharing, absorptive capacity, and innovation capability. International Journal of Research in Business and Social Science (2147- 4478), 10(8), 83–93. https://doi.org/10.20525/ijrbs.v10i8.1532

Kassaneh, T. C., Bolisani, E., Scarso, E., et al. (2023). Level of Adoption and Use of Knowledge Management Practices in Supply Chains. Journal of Information & Knowledge Management, 22(06). https://doi.org/10.1142/s0219649223500442

Khan, A. N., Mehmood, K., & Kwan, H. K. (2024). Green knowledge management: A key driver of green technology innovation and sustainable performance in the construction organizations. Journal of Innovation & Knowledge, 9(1), 100455. https://doi.org/10.1016/j.jik.2023.100455

Kimani, E. (2021). Effect of knowledge management practices on performance of mobile telephone companies. American Journal of Data, Information and Knowledge Management, 2(1), 54–66. https://doi.org/10.47672/ajdikm.764

Koentjoro, S., & Gunawan, S. (2020). Managing Knowledge, Dynamic Capabilities, Innovative Performance, and Creating Sustainable Competitive Advantage in Family Companies: A Case Study of a Family Company in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 6(3), 90. https://doi.org/10.3390/joitmc6030090

Kordab, M., Raudeliūnienė, J., & Meidutė-Kavaliauskienė, I. (2020). Mediating Role of Knowledge Management in the Relationship between Organizational Learning and Sustainable Organizational Performance. Sustainability, 12(23), 10061. https://doi.org/10.3390/su122310061

Kristensen, T. B., Saabye, H., & Edmondson, A. (2022). Becoming a learning organization while enhancing performance: the case of LEGO. International Journal of Operations & Production Management, 42(13), 438–481. https://doi.org/10.1108/ijopm-10-2021-0676

Kun, M. (2022). Linkages Between Knowledge Management Process and Corporate Sustainable Performance of Chinese Small and Medium Enterprises: Mediating Role of Frugal Innovation. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.850820

Malik, P., & Garg, P. (2017). Learning organization and work engagement: the mediating role of employee resilience. The International Journal of Human Resource Management, 31(8), 1071–1094. https://doi.org/10.1080/09585192.2017.1396549

Migdadi, M. M. (2020). Knowledge management processes, innovation capability and organizational performance. International Journal of Productivity and Performance Management, 71(1), 182–210. https://doi.org/10.1108/ijppm-04-2020-0154

Mollah, M. A., Choi, J.-H., Hwang, S.-J., et al. (2023). Exploring a Pathway to Sustainable Organizational Performance of South Korea in the Digital Age: The Effect of Digital Leadership on IT Capabilities and Organizational Learning. Sustainability, 15(10), 7875. https://doi.org/10.3390/su15107875

Nham, T. P., Nguyen, T.-M., Tran, N. H., et al. (2020). Knowledge sharing and innovation capability at both individual and organizational levels: An empirical study from Vietnam’s telecommunication companies. Management & Marketing. Challenges for the Knowledge Society, 15(2), 275–301. https://doi.org/10.2478/mmcks-2020-0017

Nirino, N., Battisti, E., Erben, M., et al. (2024). IPOs and knowledge management practices: A systematic literature review and future research agenda. Journal of Knowledge Management.

Niroula, B., Adhikari, R., & Gyawali, A. (2024). Role of Knowledge Management Practices in the Economic Performance of Nepalese IT Companies. Adhyayan Journal, 11(11), 33–43. https://doi.org/10.3126/aj.v11i11.67073

Novianti, K. R. (2019). Achieving Competitive Advantage through Knowledge Management Practices: Knowledge-Based View (KBV) Strategy on Indonesia Electricity Sector. Asia Pacific Management and Business Application, 007(03), 163–176. https://doi.org/10.21776/ub.apmba.2019.007.03.3

Ouso, W. O. (2018). Institutional factors influencing innovation of technological products and processes: A case of firms in the telecommunications sector in Kenya [PhD Thesis]. University of Nairobi

Rays, M. R., Titik, T. A., & Yvonne, Y. A. (2022). Investing the effect of learning organization, organizational culture, company reputation on organizational performance. Technium Social Sciences Journal, 37, 265–286. https://doi.org/10.47577/tssj.v37i1.7540

Rhee, M., & Stephens, A. R. (2020). Innovation-orientated technology assimilation strategy and korean smes’ enhancing innovation capability, competitive advantage and firm performance. International Journal of Innovation Management, 24(06), 2050081. https://doi.org/10.1142/s1363919620500814

Saied, M. A. A., Wahba, M., Abdel-Bary, A. A.-W., et al. (2021). The Impact of Knowledge Management on Service Quality: The Mediating Role of Organization Learning (Applied Study: Alexandria Water Company). OALib, 08(07), 1–15. https://doi.org/10.4236/oalib.1107683

Sangalang, R. M. F., Ancla, L. X. C., Chong, M. D. L., et al. (2024). Unlocking Internet of Things (IoT) for Enhanced Knowledge Management and Organizational Performance: A Case Study of Diverse Industry Players in the Philippines. International Journal of Multidisciplinary: Applied Business and Education Research, 5(1), 352–374. https://doi.org/10.11594/ijmaber.05.01.31

Sapta, I. K. S., Sudja, I. N., Landra, I. N., et al. (2021). Sustainability Performance of Organization: Mediating Role of Knowledge Management. Economies, 9(3), 97. https://doi.org/10.3390/economies9030097

Sarfraz, M., & Ivascu, L. (2023). Sustainable Management and Leadership Practices for Enhancing Business Performance. International Journal of Organizational Leadership, 12(First Special Issue 2023), 1–3. https://doi.org/10.33844/ijol.2023.60361

Shafique, I., Kalyar, M. N., Shafique, M., et al. (2022). Demystifying the link between knowledge management capability and innovation ambidexterity: organizational structure as a moderator. Business Process Management Journal, 28(5/6), 1343–1363. https://doi.org/10.1108/bpmj-11-2021-0713

Shahzad, M., Qu, Y., Zafar, A. U., et al. (2020). Exploring the influence of knowledge management process on corporate sustainable performance through green innovation. Journal of Knowledge Management, 24(9), 2079–2106. https://doi.org/10.1108/jkm-11-2019-0624

Shea, T., Usman, S. A., Arivalagan, S., et al. (2021). “Knowledge management practices” as moderator in the relationship between organizational culture and performance in information technology companies in India. VINE Journal of Information and Knowledge Management Systems, 53(4), 719–747. https://doi.org/10.1108/vjikms-12-2020-0232

Suharto, S., Gunawan, G., & Jopang, J. (2020). The development strategy of the state civil apparatus through a learning organization approach at the national and political unity agency of Kolaka Regency (Indonesian). Publica : Jurnal Administrasi Pembangunan Dan Kebijakan Publik, 11(2), 333. https://doi.org/10.33772/publica.v11i2.12786

Valmohammadi, C., Sofiyabadi, J., & Kolahi, B. (2019). How do Knowledge Management Practices Affect Sustainable Balanced Performance? Mediating Role of Innovation Practices. Sustainability, 11(18), 5129. https://doi.org/10.3390/su11185129

Veiga, P. M., Ferreira, J. J., Zhang, J. Z., et al. (2024). Exploring the Connections: Ambidexterity, Digital Capabilities, Resilience, and Behavioral Innovation. Journal of Computer Information Systems, 1–13. https://doi.org/10.1080/08874417.2023.2297031

Wang, S., Abbas, J., Sial, M. S., et al. (2022). Achieving green innovation and sustainable development goals through green knowledge management: Moderating role of organizational green culture. Journal of Innovation & Knowledge, 7(4), 100272. https://doi.org/10.1016/j.jik.2022.100272

Yang, Y. (2023). Organizational learning, leadership style and knowledge management in enterprises: Basis for innovation performance improvement. International Journal of Research Studies in Management, 11(13). https://doi.org/10.5861/ijrsm.2023.1168

Yator, F., & Kipchumba, S. (2023). Effect of Product and Process Technological Innovation Strategies on Organization Performance in the Kenya Communication Industry. A Case of Safaricom Kenya. Kabarak Journal of Research & Innovation, 13(1). https://doi.org/10.58216/kjri.v13i1.218

Zhou, S. (2023). Organizational learning, knowledge management capability and organizational innovation performance: Basis for learning organizational framework. International Journal of Research Studies in Management, 11(6). https://doi.org/10.5861/ijrsm.2023.1073