The Role of Knowledge Sharing and Innovation on Employee Performance

Abstract

The impact of knowledge sharing on employee performance has attracted considerable research attention over the last decade. However, there is limited research done in Indonesia, especially in higher education under the auspices of the Muhammadiyah organization. Nowadays, there is an awareness of the importance of knowledge sharing in creating a competitive advantage. Moreover, supported by individual innovation capabilities, knowledge sharing can be more effective. This study analyzed the role of individual innovation capabilities as a mediation between knowledge sharing and employee performance. One hundred eighty-seven questionnaires were distributed to permanent lecturers at Muhammadiyah universities in Yogyakarta. The results showed that knowledge sharing positively and significantly affected individual innovation capabilities. Both individual innovation capabilities and knowledge sharing had a positive and significant impact on employee performance. This research has proven that individual innovation capabilities play an essential role in mediation between knowledge sharing and employee performance.