Knowledge sharing, innovation and firm performance

This study investigates the quantitative relationship between knowledge sharing, innovation and performance and develops a research model positing that knowledge sharing not only have positive relationship with performance directly but also influence innovation which in turn contributes to firm performance.

Abstract

This study investigates the quantitative relationship between knowledge sharing, innovation and performance. Based on the literature review, we develop a research model positing that knowledge sharing not only have positive relationship with performance directly but also influence innovation which in turn contributes to firm performance. This model is empirically tested using data collected from 89 high technology firms in Jiangsu Province of China. It is found that both explicit and tacit knowledge sharing practices facilitate innovation and performance. Explicit knowledge sharing has more significant effects on innovation speed and financial performance while tacit knowledge sharing has more significant effects on innovation quality and operational performance.