The role of knowledge sharing and employees' satisfaction in predicting organisational innovation

Abstract

This study aimed at exploring the factors influencing organisational innovation by utilising the following six factors: Organisational culture, organisational rules and policies, employees' attitudes, intrinsic and extrinsic motivations, employees' satisfaction, and knowledge sharing. This exploratory study used a sample of 255 employees in public and private firms. A survey was used to measure the seven dimensions included in the framework. Structural equation modelling was used to estimate the path diagram and test the research hypotheses. Results indicated a strong support of our proposed framework, with an R2 equal to 0.434. Both employees' satisfaction and knowledge sharing were significant predictors of organisational innovation. Intrinsic and extrinsic motivations were significant predictors of employees' attitudes, which in turn was a significant predictor of knowledge sharing. Organisational rules and policies, organisational culture, and attitudes were significant predictors of knowledge sharing. Finally, organisational rules and policies were the only significant predictor of employees' satisfaction. Firms need to work on intrinsic and extrinsic motivation to influence employees' attitudes and thus knowledge sharing. More emphasis should be put on rules and policies that establish a culture of knowledge sharing. A systematic approach to KM would influence organisational innovation more than employees' satisfaction side. The study utilised a newly developed Arabic language instrument. This study is the first in Jordan to test such domain and to use a newly developed instrument in Arabic language.