Organizational culture as moderator in the relationship between organizational reward on knowledge sharing and employee performance

Abstract

Purpose The purpose of this paper is to examine whether organizational rewards are able to improve knowledge sharing and have an impact on employee performance moderated by organizational culture type in Ternate Municipal Government. Design/methodology/approach The design for data collection a uses survey approach, that is a form of research conducted to obtain facts about the phenomena that exist in regional government organizations to seek more factual and systematic information. The research was conducted in Ternate Municipal Government area of North Maluku Province, Indonesia. The organizations of regional apparatus are public sector agencies responsible for providing services to the public. The population in this study is echelon IIb‒IVb officials in regional apparatus organizations and certain structural officials. The units of analysis that are focused on in this research are the head of local agency, body, and office; the secretary of local agency, body and office; the head of board, the head of division, the head of the sub-board and the head of sub-division. Findings Organizational rewards in the form of giving economic rewards as remuneration, such as employee performance allowance, significantly affect individual attitudes in knowledge sharing. The interaction between the variable of remuneration with clan culture has a significant effect on knowledge sharing; these findings suggest that clan culture is a pure moderation variable that strengthens the relationship between remuneration and knowledge sharing. The result of this research proves that the interaction between the variable of remuneration with adhocracy culture has no significant effect on knowledge sharing. The interaction between the variable of remuneration with hierarchical culture has a significant negative effect on knowledge sharing. Market culture is not proven to moderate the relationship between remuneration and knowledge sharing. However, market culture variables directly and significantly affect knowledge sharing. Originality/value This research is the development of a research model conducted by Durmusoglu et al. (2014). The previous model uses organizational culture with a knowledge-sharing culture instrument, whereas this research develops organizational culture by using the type of organizational culture by Cameron and Quinn (1999), namely clan culture, adhocratic culture, hierarchical culture, and market culture. This type of organizational culture as a moderating variable can be expected to play a role in strengthening organizational rewards toward sharing knowledge and also impacting employee performance. Howell et al. (1986) revealed that organizational culture can strengthen the relationship between organizational rewards and disseminated knowledge. Hence, organizational culture moderates the relationship between organizational rewards for knowledge sharing to build upon Durmusoglu et al. (2014).

Enablers of Patient Knowledge Empowerment for Self-Management of Chronic Disease: An Integrative Review

“…Qualitative analysis of the research revealed that knowledge management activities in an organization are ensured by a transformational leadership style characterized by motivating members of the organization for autonomy, mutual trust and “cultivation” of the commitment to the organization [ 50 , 85 ]. Transformational leaders create a supportive environment and, through charisma and special attention to employees, promote their intellectual development, motivate the creation and sharing of knowledge, develop a learning culture and discipline, and create mechanisms for knowledge management activities [ 17 , 80 , 84 , 86 ].Some authors identify transformational leadership styles with knowledge-oriented leadership, thus emphasizing the importance of this leadership style for ensuring knowledge management activities in an organization [ 86 , 87 ].…”

The effect of perceived rewards on radical innovation: the mediating role of knowledge management in Indian manufacturing firms

“…Knowledge sharing takes two forms; knowledge collecting which refers to persuading others to share their knowledge, and donating which is about internal willingness to share one’s own knowledge with others ( Kamasak and Bulutlar, 2010 ). For knowledge acquisition and sharing processes to take place, employees need to feel motivated and supported by their management ( Rohim and Budhiasa, 2019 ).…”

“…Knowledge in itself will not create value if it is not shared ( Liu and Liu, 2008 ). Employees’ efforts with regard to knowledge behaviours will lead to greater benefits and value, they are likely to acquire and share their knowledge if they receive rewards ( Rohim and Budhiasa, 2019 ). According to Lawler (1992) , without a proper reward mechanism, behavioural involvement is likely to weaken over time.…”

“…Motivating employees to acquire and share knowledge necessitates a set of organisational arrangements; in particular, ones related to human resource management ( Hislop, 2003 ; Andreeva et al., 2017 ). The literature stresses the need for more work on the relationship between HRM and knowledge management ( Hislop, 2003 ; Rohim and Budhiasa, 2019 ). Similarly, scholars have emphasised the instrumental role of rewards in fostering knowledge management ( Foss et al., 2015 ).…”

“…Similarly, scholars have emphasised the instrumental role of rewards in fostering knowledge management ( Foss et al., 2015 ). A recent study by Rohim and Budhiasa (2019) found that rewards play a significant role in employees’ knowledge sharing attitudes, while Kim and Lee (2010) found that knowledge sharing capabilities demand interaction and collaboration between employees.…”