Knowledge sharing and firm performance: the role of social networking site and innovation capability

ABSTRACT

This study developed a framework to explore SNSs' capability as a strategic platform from which firms can overcome environmental turbulence and develop higher level knowledge sharing and firm performance output. The moderating effects of two types of innovation capability, product development capability and operational capability, were taken into consideration. We propose that SNSs' capability paired with strong product development capability is the key to improving knowledge sharing performance. SNSs' capability paired with strong operational capability can improve firm performance by advancing incremental innovation processes. Drawing upon the literature regarding information systems, knowledge management, and firm innovation, we propose a conceptual model adopted from the environment-strategy-performance framework to explore how these key factors interact to determine the fate of a firm.

KEYWORDS:

• Social networking sites
• innovation capability
• knowledge sharing
• environment-strategy-performance

Notes on contributors

Rendi Hartono is a Ph.D. candidate in Business Administration at the National Taiwan University of Science and Technology.

Margaret L. Sheng is currently a visiting scholar at University of California, Berkeley, USA, and Associate Professor of Marketing, School of Management, National Taiwan University of Science and Technology.