Does Knowledge Sharing Mediate the Relationship between Trust and Firm Performance?

Using structural equations modeling with data collected 208 Chinese firms, the result show that knowledge sharing plays a perfect mediating role between trust and firm performance.

Abstract

Knowledge sharing is crucial for success of companies operating in turbulent and uncertain environments. Knowledge sharing need to be introduced at a rapid pace while at the same time companies have to absorb market information and integrate knowledge during information technology application. Hence, the purpose of this paper is to develop a general model on the critical antecedents and outcome of knowledge sharing. Using structural equations modeling with data collected 208 Chinese firms, the result show that knowledge sharing plays a perfect mediating role between trust and firm performance. Managerial implications are explored and future research directions are also identified.