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Knowledge sharing and innovation performance: a case study on the impact of organizational culture, structural capital, human resource management practices, and relational capital of real estate agents

Business

Knowledge sharing and innovation performance: a case study on the impact of organizational culture, structural capital, human resource management practices, and relational capital of real estate agents

C. Lee, W. Yeh, et al.

This study delves into the intricate factors shaping innovation performance among real estate agents in Kaohsiung City, Taiwan. Conducted by Chung-Chang Lee, Wen-Chih Yeh, Zheng Yu, and Yuan-Chen Luo, the research unveils how relational capital and knowledge sharing interplay with organizational culture and structural capital to enhance innovation outcomes.

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Playback language: English
Introduction
Innovation performance is crucial for organizational success and advancement across various sectors. While research on real estate agencies often focuses on financial and service aspects, this study explores the impact of organizational culture, structural capital, HRM practices, and relational capital on innovation performance, mediated by knowledge sharing. The real estate industry, particularly in Taiwan, is characterized by commission-based compensation, long hours, and high turnover, creating a need to understand how to foster innovation. This study aims to fill this gap by examining the interplay of organizational and individual-level factors in driving innovation among real estate agents. The research question focuses on how organizational culture, structural capital, HRM practices, and relational capital influence innovation performance, with a specific emphasis on the mediating role of knowledge sharing. The study's importance lies in offering insights into improving innovation in a service-oriented, competitive industry facing constant change. Understanding these drivers is essential for real estate agencies to adapt and remain competitive in a dynamic market shaped by technology and evolving consumer behavior.
Literature Review
The literature review extensively examines existing research on innovation performance in various contexts, highlighting its importance across different industries. It emphasizes the lack of research specifically focusing on the innovation performance of real estate agents, noting that existing studies primarily address financial and service aspects. The review then delves into the theoretical underpinnings of the study's key constructs: organizational culture, emphasizing its components of market orientation and shared values; structural capital, its forms (organizational, innovation, and process capital), and its contribution to organizational value; human resource management practices, their roles in employee engagement, and their impact on organizational cohesion; and relational capital, focusing on its influence on knowledge sharing and business performance. The review also covers the critical role of knowledge sharing in fostering innovation, emphasizing the barriers to knowledge sharing within organizations. Finally, the literature review sets the stage for the study's hypotheses by drawing connections between these constructs and their anticipated influence on innovation performance.
Methodology
This study employed a hierarchical linear model (HLM) to analyze data collected from a survey of real estate agents in Kaohsiung City, Taiwan. The HLM approach was chosen to address potential bias in traditional regression analysis by accounting for the nested structure of the data (individual agents within agency branches). The study framework included organizational-level variables (organizational culture, structural capital, HRM practices) and individual-level variables (relational capital, knowledge sharing, and innovation performance). A total of 1130 questionnaires were distributed across 113 agencies, resulting in 401 valid responses. The questionnaire consisted of two sections: one for demographic information and one for assessing the study variables using a five-point Likert scale. The reliability of the scales was assessed using Cronbach's alpha, which showed high reliability across all dimensions. Construct validity was established through factor loadings and convergent validity analysis. The methodology further details the null model used to test for significant differences in innovation performance and knowledge sharing between branches. The hierarchical linear mediation model was then used to test the mediating effect of knowledge sharing on the relationships between the organizational-level variables (organizational culture, structural capital, relational capital) and innovation performance. The study also included control variables (sex, job tenure, business model) to account for potential confounding effects. Specific equations are provided outlining the HLM models, addressing potential aggregation issues and examining within-group agreement to ensure the validity of the aggregate-level data. The three-step mediation effect test by Baron and Kenny was followed to assess the mediating role of knowledge sharing.
Key Findings
The analysis revealed several key findings. Firstly, organizational culture, structural capital, and relational capital all significantly and positively influenced innovation performance, but only indirectly through the mediating effect of knowledge sharing. Specifically: * **Organizational Culture:** Exerted a partial mediating effect on innovation performance through knowledge sharing. A stronger understanding of organizational culture among real estate agents correlated with increased knowledge sharing and consequently, higher innovation performance. (H5 and H10 supported) * **Structural Capital:** Showed a complete mediating effect on innovation performance via knowledge sharing. Agents with a stronger understanding of their organization's structural capital demonstrated higher levels of knowledge sharing and subsequently better innovation performance. (H6 and H11 supported) * **Relational Capital:** Also exhibited a partial mediating effect on innovation performance via knowledge sharing. Stronger relational capital among agents fostered more knowledge sharing, leading to enhanced innovation performance. (H7 and H12 supported) * **HRM Practices:** Had a direct and positive effect on innovation performance. However, contrary to expectations, HRM practices did not moderate the relationship between knowledge sharing and innovation performance. (H8 supported, H9 not supported) Secondly, knowledge sharing itself had a significant and positive direct effect on innovation performance. (H4 supported). The intraclass correlation indicated that a substantial portion of the variance in both innovation performance and knowledge sharing was attributable to differences between agency branches, justifying the use of HLM analysis. The p-values and significance levels associated with the various regression coefficients are presented in Table 3, providing statistical evidence for each finding.
Discussion
The findings provide valuable insights into the factors driving innovation performance among real estate agents. The significant mediating role of knowledge sharing underscores its importance as a mechanism for translating organizational-level factors into improved individual-level innovation. The positive influence of organizational culture, structural capital, and relational capital on knowledge sharing highlights the need for organizations to cultivate a supportive environment that encourages collaboration and information exchange. The results align with theoretical frameworks emphasizing the importance of social capital and knowledge management in fostering innovation. The lack of moderation effect of HRM practices, however, suggests that simply implementing HRM programs might not be sufficient to improve knowledge sharing and innovation. The strong direct effect of knowledge sharing on innovation suggests organizations should prioritize the implementation of knowledge management systems and initiatives that remove barriers to knowledge sharing. These findings offer practical implications for real estate agencies, helping them develop more effective strategies to enhance innovation performance among their agents.
Conclusion
This study offers several important contributions to the literature on innovation performance in the real estate industry. It demonstrates the significant indirect influence of organizational culture, structural capital, and relational capital on innovation performance through the mediating role of knowledge sharing. The findings highlight the importance of creating a supportive and collaborative organizational culture, investing in structural capital, and fostering strong relational ties among agents. Future research should explore additional factors that might influence innovation performance and investigate the effectiveness of specific HRM practices in facilitating knowledge sharing. Further research could also examine how technological advancements and changes in consumer behavior might impact these relationships.
Limitations
The study's limitations include the use of convenience sampling within a specific geographic area (Kaohsiung City, Taiwan), which might limit the generalizability of the findings to other regions or contexts. The model included only a limited set of control variables (sex, tenure, and business model), potentially neglecting other relevant factors. The study did not collect data from supervisors, preventing a comprehensive examination of their influence on knowledge sharing and innovation performance. Finally, the focus on only specific aspects of HRM practices might have overlooked the impact of other HRM dimensions on the studied relationships.
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