The Effect of Organizational Trust, Knowledge Sharing and Knowledge Creation on Innovation and Business Performance of Taiwan High Technology Companies

Abstract

無中文摘要ABSTRACT We live in the era of globalization, an era where a call can be made from Asia and received in Africa at virtually no cost thanks to the internet and advances in telecommunications. An era where markets have merged and have become more aggressive, and where companies, in order to stay competitive, try to hire the most qualified employees from all across the globe. Due to this new trend, companies must provide their employees with conditions that allow them to achieve their full capabilities in order to be more profitable. Nevertheless, this creates issues, since there are so many different options when picking a strategy to obtain innovation and optimal business performance, with so many factors that may influence the results. Thus, this study examined and analyzed the effects of organizational trust, knowledge sharing, and knowledge creation on innovation and business performance of Taiwanese high technology company employees. A quantitative study was implemented and statistical analysis tested the relationship of said variables. The study used Statistical Package for the Social Sciences (SPSS) and Partial Least Squares (PLS), as tools to analyze the collected data, this study includes the descriptive statistics, path coefficients, coefficient of determination (R2), bootstrapping, t-value, Composite Reliability results, Cronbach’s Alpha, correlation, average variance extracted (AVE), Standardized Root Mean Square Residual, Fornell-Larcker Criterion and Heterotrait-Monotrait Ratio. The data for this study was collected from employees of high technology companies in Taiwan. The results of this study showed that there is a strong and positive significant relationship between organizational trust and knowledge sharing, organizational trust and knowledge creation, , knowledge creation and knowledge sharing, knowledge creation and innovation, innovation and business performance, a weak correlation between organizational trust and business performance and finally with regards to knowledge sharing and innovation, the results showed that there was not a significant correlation between the two variables, this was explained because in order to protect their confidentiality, departments don’t usually share their information with others unless strictly required and get their innovation process trough knowledge creation.