Demystifying the differences in the impact of training and incentives on employee performance: mediating roles of trust and knowledge sharing

Yuk Ling Angie Lee,Piyush Sharma,Ashish Malik,Philip J Rosenberger Iii

doi:10.1108/jkm-04-2020-0309

Yuk Ling Angie Lee, Piyush Sharma + Show 2 more

Open Access

https://doi.org/10.1108/jkm-04-2020-0309

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Abstract

PurposeThis paper aims to investigate the differences in the mediating roles of trust and knowledge sharing (formal vs informal) in the process by which training and incentives influence organizational performance (sales increase and labor productivity).Design/methodology/approachThe data from an online survey of Senior Managers from 119 firms in Hong Kong’s clothing industry (HKCI) was analyzed using SmartPLS software.FindingsTrust has a stronger mediating impact in the effects of incentives (vs training) on both formal and informal knowledge sharing. Informal (vs formal) knowledge sharing has a stronger mediating impact in the effects of trust on sales increase and labor productivity.Research limitations/implicationsFuture research may consider different dimensions such as knowledge donating and collecting behaviors, as well as motives, such as self-enjoyment, reciprocity or social interaction ties to study knowledge sharing behavior.Practical implicationsThis study shows that incentives are more likely than training to help build a trusting environment in an organization and that informal knowledge sharing has a stronger influence on organizational performance than formal knowledge sharing.Originality/valueThe study’s distinctive contribution is the under-researched context of HKCI for investigating the mediating effects of trust and formal and informal knowledge sharing between ability and motivational practices on performance.

Highlights

The use of ability and motivation enhancing practices by employers has been linked to employee, business unit and overall organizational performance (Aryee et al, 2016; Gardner et al, 2011; Jiang et al, 2012; Vroom, 1964)
This paper contributes to current literatures on the HRM practices of training and incentives, the impact of trust in the workplace, and the role of formal and informal knowledge sharing (Blumberg and Pringle, 1982; Vroom, 1964; Zahra et al, 2007), by exploring their impact on sales and labor productivity in the context of Hong Kong clothing industry
H1a results suggest that trust has a stronger mediating effect in the impact of incentive systems versus training on formal knowledge sharing

Summary

Introduction

The use of ability and motivation enhancing practices by employers has been linked to employee, business unit and overall organizational performance (Aryee et al, 2016; Gardner et al, 2011; Jiang et al, 2012; Vroom, 1964). There is limited research on the underlying processes of social relations at work, such as the presence of interpersonal trust (Mooradian et al, 2006) on employee and organizational performance (e.g., increase in sales and labor productivity) In this context, social and contextual influences, such as social interactional ties between employees and managers, have been identified as key drivers of knowledge sharing behaviors within organizations (Wickramasinghe and Widyaratne, 2012). This paper addresses the above research gaps by exploring the mediating role of trust and knowledge sharing (both formal and informal) in the impact of HRM practices that enhance employees ability (e.g., training) and motivation (e.g., incentives) on the organizational performance (e.g., sales increase and labor productivity). The authors discuss the theoretical contribution and managerial implications of their findings along with the limitations of this study and some useful directions for future research

Literature review

Discussion

Limitations and future research

Findings

Sales Increase