The Link Between Knowledge Sharing and Organizational Performance

Abstract

Despite a general assumption that knowledge sharing among employees is vital for achieving a competitive advantage, only limited evidence has been provided to support it. This article examines the relation between knowledge sharing and three dimensions of organizational performance: innovativeness, financial performance and the use of human recourses. The study uses data from a sample of 112 employees from the Czech Republic. The findings provide evidence that knowledge sharing is significantly related to organizational innovativeness, employees' engagement, and the perceived benefits of knowledge sharing. However, there was no statistically significant correlation between knowledge sharing and financial performance. The results highlight that if a competitive advantage is built on innovativeness, then bilateral communication between supervisors and their subordinates, including the communication of the top management's intentions and employees' ideas, is essential because it facilitates knowledge sharing among employees.