Examining the effect of organizational innovation on employee creativity and firm performance: Moderating role of knowledge sharing between employee creativity and employee performance

Abstract

This study sets out to investigate the influence of organisational innovation (innovation speed, innovation quality and innovation quantity), extrinsic rewards, and intrinsic motivation on employee creativity and firm performance. We advance the body of knowledge on this subject and examined the moderating role of knowledge sharing between employee creativity and employee performance. Data was collected from employees working in Saudi public sector. For empirical findings structural equation modelling (SEM) was applied. The results show that employee creativity was jointly predicted by organisational innovation, extrinsic rewards and intrinsic rewards and explained R2 66.5% variance in employee creativity. Therefore, firm performance was predicted by employee creativity and showed R2 60.5% variance in firm performance. Furthermore, this study confirmed the moderating role of knowledge sharing between employee creativity and employee performance such that the positive relationship between employee creativity and employee performance will be stronger when knowledge sharing is higher.