Knowledge-sharing capability and innovation performance: identifying the contribution of dynamic capabilities and organizational learning

Abstract

Developing innovation performance (IP) has always been an organizational dream. The present study aims to examine the contribution of knowledge-sharing capability (KSC), dynamic capabilities and organizational learning (OL) on enhancing IP in Egyptian small and medium-sized enterprises (SMEs). The study’s framework is underpinned by two theories: the knowledge-based view (KBV) and absorptive capacity theory (ACT). This study is quantitative, using cross-sectional data collected via a survey questionnaire. The focus is on SMEs, and the respondents are management-level individuals (lower-, middle- and top-level). The study gathered 326 valid cases. Using partial least squares structural equation modeling (PLS-SEM) analysis, the results reveal that the effect of KSC on the three dimensions of dynamic capabilities, i.e. knowledge absorption capability (KAC), knowledge integration capability (KIC) and knowledge generation capability (KGC), is not supported, where the path coefficients of KSC are not statistically significant on KAC, KIC and KGC (threshold values > 0.05). KSC has a significant positive effect on IP and OL. KAC does not have a statistically significant effect on IP. There is a statistically significant but negative relationship between KIC and IP. Besides, KGC does not significantly impact IP. Moreover, OL has a positive and significant effect on IP. Finally, OL mediates the relationship between KSC and IP. The study’s outcomes could help policymakers and SME authorities augment their IP by encouraging more KSC, dynamic capabilities and OL to enhance innovative and technological skills. The study could also help create innovative ideas for enterprises through different knowledge-sharing initiatives and assist in developing a conducive culture where organizations can enjoy their success and profitability. This study addresses important gaps by introducing an integrated framework that captures both direct and indirect effects in a single model. This offers robust theoretical insights from Egyptian SMEs.