How knowledge sharing connects interpersonal trust and innovation capability

Abstract

Purpose Knowledge sharing (KS) and innovation are generally believed as the antecedents of key outcomes that help firms to attain and sustain competitive advantage in long term. The purpose of this paper is to analyze the mechanism of how interpersonal trust and leader support affect KS and improve firm’s innovation capabilities. Design/methodology/approach This is a research paper which is built using empirical data collected from 68 manufacturing and service firms in China. Findings First, the findings show that leader supports moderate the correlation between interpersonal trust and KS. Second, KS serves as mediator in the relationship between interpersonal trust and firm’s innovation capabilities. Research limitations/implications KS plays a crucial role in stimulating innovation capabilities for both manufacturing and service firms. Future research should explore the effects of the motivational factors (such as positive psychological state, perceived benefits and costs) on KS and firm’s innovation capabilities. Practical implications The paper provides the evidence for the positive effects of interpersonal trust on KS, which in turn is significantly associated with product innovation and process innovation. It highlights the important role of leader supports in promoting the degree of sharing knowledge among individuals to enhance innovation capabilities for firms. Originality/value This study puts the theory of innovation forward based on exploring the key factors that have potential and positive impacts on two specific types of innovation capability, namely, product innovation and process innovation, for both manufacturing and service firms.

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