How Does Knowledge Absorption Foster Performance? The Mediating Effect of Innovation Capability

Heru Sulistyo, Sri Ayuni

Abstract

This research aims to examine the impact of knowledge sharing and knowledge absorption on the innovation capability and the performance of Sharia banks. The rapid competition in banking industry among conventional and Sharia banks requires innovation capability in order to enhance the performance and achieve the sustainable competitive advantage. The development and performance of Sharia banks at the present still tend to be low. Innovation on product and service is one of the success keys of Sharia banks in enhancing the performance and competitiveness. Innovation capability can be developed if the employees within the organization are able to perform knowledge sharing or knowledge absorption. The sample of this research includes the employees of Sharia Banks in Semarang as many as 102 respondents. The sampling technique uses purposive sampling with criteria; permanent employees who have been working no less than 5 years. The data collection method is performed using questionnaire, while the data analysis technique uses SEM. The finding concludes that knowledge sharing and knowledge absorption significantly impact the innovation capability and performance.

Keywords

Knowledge Sharing; Knowledge Absorption; Innovation Capability; Employee Performance.

Full Text:

PDF

References

Akram, M. 2017. The Effect of Knowledge Sharing Behavior on the Relationship of Psychological Contract, Creativity and Innovative Behaviors. Journal of Basic and Applied Scientific Research. 7 (9): 10-17.

Al-Hayaly, M. A. M. S & Alnajjar, F. J. 2016. Knowledge Management Processes and their Impact on Organizational Performance, the Adoption Balanced Scorecard: the Moderating Role of Quality Assurance Standards-An Applied Study on Private Jordanian Universities. International Journal of Business and Management. 11 (6): 70-86.

Arizqi, A. 2017. Performance Enhancement Model of Human Resources through Knowledge Sharing. Jurnal Dinamika Manajemen. 8 (1): 134-142.

Almudallal, A. W., Bakri, N., Muktar, S. N & El-Farra, M. M. 2016. Implementing Knowledge Management in the Palestian Public Sector Institutions: Empirical Study on the Presidency of the Palestinian Government. International Review of Management and Marketing. 6 (S4): 101-107.

Al. Othman, F. A & Sohaib, O. 2016. Enhancing Innovative Capability and Sustainability of Saudi Firms. Sustainability. 8 (1229): 1-16.

Andreeva, T & Kianto, A. 2011. Knowledge Processes, Knowledge-Intensity and Innovation: a Moderated Mediation Analysis. Journal of Knowledge Management. 15 (3): 1016-1034.

Battor, M. M & Battor, M. M. 2010. The Impact of Customer Relationship Management Capability on Innovation and Performance Advantages: Testing a Mediated Model. Journal of Marketing Management. 26 (9-10): 842-857.

Byukusenge, E., Munene, J. C & Orabia, L. 2016. Does Knowledge Management Lead to Innovation? an Empirical Study on SMEs in Rwanda. International Journal of Management Science and Business Administration. 2 (9): 7-19.

Cakar, N. D & Ertürk, A. 2010. Comparing Innovation Capability of Small and Medium-Sized Enterprises: Examining the Effects of Organizational Culture. Journal of Small Business Management. 48 (3): 325-359.

Cohen, W. M & Levinthal, D. A. 1990. Absorptive Capacity: A New Perspective on Learning and Innovation. Administrative Science Quarterly. 35(1): 128-152.

Elianto, W & Wulansari, N. A. 2016. Building Knowledge Sharing Intention with International Trust as a Mediating Variable. Jurnal Manajemen Teknologi. 15 (1): 67-76.

Ertürk, A. 2012. Linking Psychological Empowerment to Innovation Capability: Investigating the Moderating Effect of Supervisory Trust. International Journal of Business and Social Science. 3 (14): 153-166.

Fındıklı, M. A., Yozgat, U & Rofcanin, Y. 2015. Examining Organizational Innovation and Knowledge Management Capacity the Central Role of Strategic Human Resources Practices. Procedia-Social and Behavioral Sciences. 181: 377-387.

Foss, N. J., Husted, K & Michailova, S. 2010. Governing Knowledge Sharing in Organizations: Levels of Analysis, Governance Mechanisms and Research Directions. Journal of Management Studies. 47 (3): 455-482.

Garrido-Morino, A., Lockett, N & Garcia-Morales, V. 2015. Exploring the Role of Knowledge Management Practices in Fostering Customer Relationship Management as a Catalyst of Marketing Innovation. Baltic Journal of Management. 10 (4): 393-412.

Henttonen, K., Kianto, A & Ritala, P. 2016. Knowledge Sharing and Individual Work Performance: an Empirical Study of a Public Sector Organisation. Journal of Knowledge Management. 20 (4): 749-768.

Hooff, B. Van Den & Ridder, J. A. De. 2004. Knowledge Sharing in Context : the Influence of Organizational Commitment, Communication Climate and CMC Use on Knowledge Sharing. Journal of Knowledge Management. 8 (6): 117-130.

Iddris, F. 2016. Innovation Capability: A Systematic Review and Research Agenda. Interdisciplinary Journal of Information, Knowledge and Management. 11: 235-260.

Jaberi, E. 2016. The Effect of Knowledge Sharing on Innovative Behavior among Employee of Besat Hospital in City of Hamedan. International Academic Journal of Accounting and Financial Management. 3 (4): 41-47.

Janssen, O. 2001. Fairness Perceptions as a Moderator in the Curvilinear Relationships between Job Demands and Job Performance and Job Satisfaction. The Academy of Management Journal. 44 (5): 1039-1050.

Kashan, A. J & Mohannak, K. 2015. An Empirical Study of Capability Development within Product Innovation Project. Journal of Technology Management and Innovation. 10 (1): 70-82.

Kumar, N & Rose, R. C. 2012. The Impact of Knowledge Sharing and Islamic Work Ethic on Innovation Capability. Cross Cultural Management: An International Journal. 19 (2): 142-165.

Kwahk, K. Y & Park, D. H. 2016. The Effects of Network Sharing on Knowledge-Sharing Activities and Job Performance in Enterprise Social Media Environments. Computers in Human Behavior. 55: 826-839.

Li, Y., Wang, L & Liu, Y. 2011. Organisational Learning, Product Quality and Performance: the Moderating Effect of Social Ties in Chinese Cross-Border Outsourcing. International Journal of Production Research. 49 (1): 159-182.

Liao, L-F. 2006. A Learning Organization Perspective on Knowledge-Sharing Behavior and Firm Innovation. Human System Management. 25 (4): 227-236.

Liao, S. H., Wu, C. F & Chih, C. C. 2007. Knowledge Sharing, Absorptive Capacity and Innovation Capability: An Empirical Study of Taiwan’s Knowledge Intensive Industries. Journal of Information Science. 33 (3): 1-20.

Liao, L-F. 2008. Knowledge-Sharing in R & D Departments: a Social Power and Social Exchange Theory Perspective. The International Journal of Human Resource Management. 19 (10): 1881-1895.

Liao, S., Fei, W & Chen, C. 2009. Knowledge Sharing, Absorptive Capacity and Innovation Capability : an Empirical Study of Taiwan’s Knowledge-Intensive Industries. Journal of Information Science. 33 (3): 160-167.

Lin, H-F. 2007. Knowledge Sharing and Firm Innovation Capability: an Empirical Study. International Journal of Manpower. 28 (3/4): 315-332.

Lin, R-J., Chen, R-H & Chiu, K. K-S. 2010. Customer Relationship Management and Innovation Capability: an Empirical Study. Industrial Management & Data Systems. 110 (1): 111-133.

Liu, X., Huang, Q., Dou, J & Zhao, X. 2015. The Impact of Informal Social Interaction on Innovation Capability in the Context of Buyer-Supplier Dyads. Journal of Business Research. 78: 314-322.

Malkawi, M. S & Rumman, A. H. A. 2016. Knowledge Management Capabilities and Its Impact on Product Innovation in SMEs. International Business Research. 9 (5): 76-86.

Muskat, B & Deery, M. 2017. Knowledge Transfer and Organizational Memory: An Events Perspective. Event Management. 21 (4): 431-447.

Nisula, A-M & Kianto, A. 2013. Evaluating and Developing Innovation Capabilities with a Structured Method. Interdisciplinary Journal of Information, Knowledge and Management. 8: 59-82.

Nodari, F., Oliveira, M & Maçada, A. C. G. 2016. Organizational Performance through the Donation and Collection of Interorganizational Knowledge. VINE Journal of Information and Knowledge Management Systems. 46 (1): 85-103.

O’Cass, A & Weerawardena, J. 2009. Examining the role of International Entrepreneurship, Innovation and International Market Performance in SME Internationalisation. European Journal of Marketing. 43 (11/12): 1325-1348.

Pai, Fan-Yun & Chang, Hung-Fan. 2013. The Effect of Knowledge Sharing and Absorption on Organizational Innovation Performance-A Dynamic Capabilities Perspectives. Interdisciplinary Journal of Information, Knowledge and Management. 8:83-97.

Radovanić, N & Matović, D. 2016. Organizational Form and Knowledge Absorption. Industrija. 44 (3): 175-190.

Saunila, M & Ukko, J. 2012. A Conceptual Framework for the Measurement of Innovation Capability and its Effects. Baltic Journal of Management. 7 (4): 355-375.

Sulistyo, H & Siyamtinah. 2016. Innovation Capability of SMEs through Entrepreneurship, Marketing Capability, Relational Capital and Empowerment. Asia Pacific Management Review. 21(4): 196-203.

Tsai, M. T & Tsai, T. L. 2010. Innovation Capability and Performance in Taiwanese Science Parks: Exploring the Moderating Effects of Industrial Cluster Fabric. International Journal of Organizational Innovation. 2 (4): 80-104.

Usman, M & Mat, N. 2017. The Emergence of Innovation, Knowledge Sharing Behavior, Islamic Work Ethic and Entrepreneurial Orientation: A Conceptual Framework for the Public Sector. International Business Management. 11 (6): 1234-1239.

Wang, M-H & Yang, T-Y. 2016. Investigating the Success of Knowledge Management: An Empirical Study of Small and Medium-Sized Enterprises. Asia Pacific Management Review. 21 (2): 79-91.

YeÅŸil, S & Dereli, S. F. 2013. An Empirical Investigation of the Organisational Justice, Knowledge Sharing and Innovation Capability. Procedia-Social and Behavioral Sciences. 75: 199-208.

View Counter: Abstract - 1513 and PDF - 1057

Refbacks

  • There are currently no refbacks.


Bookmark and Share