Does Knowledge Sharing Mediate the Relationship 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.