Navigating the turnover-knowledge loss nexus: does industry-specific difference matter?

Purpose The turnover of employees poses a significant challenge to organizations, as it increases the danger of losing relevant knowledge. The pandemic has increased the desire of many workers to change jobs. Companies should therefore take utmost care to maintain good relationships with employees to be able to respond when the need arises. In this light, the purpose of this study is to test the relationship between employee turnover intentions (ETIs) and knowledge loss (KL). The study also analyzes the moderating role of industry type in the relationship between ETIs and KL. Design/methodology/approach The hypotheses were tested using simple linear regression, exploratory factor analysis (EFA), multigroup analysis, and structural equation modeling (SEM). Findings The results indicate that ETIs positively affect KL (β = 0.83, p < 0.001) and industry type moderates the relationship between ETIs and KL. The results also indicate that ETIs affect knowledge retention and knowledge recovery. Originality/value The main contribution of the study is the empirical evidence that the influence of ETIs on KL varies across industries. Based on the findings a valid measure of KL (knowledge retention and recovery) is proposed.