From knowledge sharing to firm performance: A predictive model comparison

Abstract

This study investigates how knowledge sharing (KS) contributes to firm performance (FP) through the enhancement of innovation and/or intellectual capital (IC) using data collected from Chinese high-technology firms. The paper proposes three alternative models that suggest different mediating roles of innovation and IC components in the KS→FP nomological network based on existing theory. The paper then compares these models in terms of in-sample explanatory and out-of-sample predictive powers using consistent partial least squares path modeling (PLSc). Results indicate that in the best performing model, innovation and IC simultaneously mediate the relationship between KS and FP in this specific context. The findings offer insights regarding the parallel mediation roles of innovation and IC in the KS→FP process, showcase the predictive utility of PLSc, and can help managers set priorities when leveraging KS to achieve specific performance goals.