Examining the Impact of Innovation Culture and Knowledge Sharing on Organizational Performance: The Roles of Employee Engagement and Leadership Support

Abstract

This study investigates the intricate relationships between innovation culture, knowledge sharing, and organizational performance, focusing on employee engagement as a mediator and leadership support as a moderating variable. Using a positivist research approach, we tested hypotheses derived from our research questions with a sample of 350 respondents. The study aimed to explore how factors such as creativity encouragement, risk-taking acceptance, and knowledge sharing levels impact organizational performance, which was measured using markers like financial performance and innovation. Employee engagement, encompassing commitment and motivation, served as a critical mediating variable, while leadership support, including innovation encouragement and resource availability, was examined as a moderator. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM), which demonstrated its suitability in assessing the proposed relationships and mediating and moderating effects. The findings reveal that both innovation culture and knowledge sharing significantly enhance organizational performance, with employee engagement playing a crucial mediating role. Additionally, leadership support was found to moderate these relationships, further emphasizing its importance in fostering a supportive and innovative organizational environment. This research contributes to the understanding of how organizational dynamics can be optimized to improve performance and provides practical insights for enhancing employee engagement and leadership practices.