Does trust-induced knowledge sharing indeed enhance organisational performance The moderating role of organisational culture

Past studies have examined the direct and indirect impacts of organisational trust on firm performance, but no studies have endeavoured to explain if its effect is channelled through knowledge sharing. While extending the knowledge-based and relational views of the firm to the micro level, the primary aim of this study has been to study the impact of organisational trust and knowledge sharing in enhancing firm performance while taking organisational culture as the critical moderating contingency. After performing a PLS-based modelling on a dataset comprising 398 informants, it has been found that organisational trust directly as well as indirectly affects firm performance through stimulating knowledge sharing. Moreover, the dual effect of organisational culture in moderating the associations between organisational trust and knowledge sharing, as well as the knowledge sharing, and firm performance has also been empirically substantiated. Besides enriching scholarly discourse in knowledge-based and relational views of the firm, this study offers useful implications to managers intending to enhance their firm performance.