Effect of Knowledge Management and Information Sharing on Innovation Performance

Abstract

The theorization and empirical support of knowledge management and information sharing as essential facilitators of organizational innovation performance have been well-known but empirical study to examine the synergistic impacts of the two is still scarce regarding the systematic analysis of their unique contributions to the instructions in Internet-based knowledge-intensive organizations in Pakistan. This paper has analyzed the first-order relationship between the knowledge management practices and information sharing and the performance of innovation among the employees of the educational institutions and the organizations in the corporate sector in Pakistan. The cross sectional survey was quantitative in nature. The study involved a sample of 300 employees in knowledge-intensive organizations to fill in a self-administered questionnaire which captured knowledge management practices, information sharing and innovation performance on a 5-point Likert scale. Use of convenience sampling was adopted. It was analyzed with SPSS 25 and AMOS 24 in the descriptive statistics, Cronbach alpha reliability tests, Pearson correlation test, confirmatory factor test (CFA) and structural equation modeling (SEM). The practice of knowledge management has a large positive direct impact on innovations ( = 0.53, p <.001), and information sharing has a large positive direct impact ( = 0.46, p <.001). The structural model accounted 62.4% (R-squared=.624) of the variance in innovation performance. CFA attested good construct validity with AVE ranging between.54 and.58 and composite reliability ranging between.89 and.93. The results contribute to the body of knowledge management research on the context of developing economies and offers educational and corporate knowledge institutions evidence-based knowledge infrastructural investment and information sharing culture building.