IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i15p4049-d252041.html
   My bibliography  Save this article

The Impact of Knowledge Sharing and Innovation on Sustainable Performance in Islamic Banks: A Mediation Analysis through a SEM Approach

Author

Listed:
  • Jaffar Abbas

    (School of Media and Communication (SMC); Antai College of Economics and Management (ACEM) Shanghai Jiao Tong University (SJTU), No. 800 Dongchuan Road Minhang District, Shanghai 200240, China)

  • Iftikhar Hussain

    (Dean: Faculty of Computing and Engineering, University of Kotli Azad Jammu and Kashmir (UOKAJK), Kotli 111000, Pakistan)

  • Safdar Hussain

    (College of Management, Shenzhen University, Shenzhen 518060, China
    Pir Mehr Ali Shah, Arid Agriculture University, Rawalpindi 46000, Pakistan)

  • Sabahat Akram

    (Department of Economics, University of Kotli Azad Jammu and Kashmir (UOKAJK), Kotli 111000, Pakistan)

  • Imrab Shaheen

    (Department of Public Administration, University of Kotli Azad Jammu and Kashmir (UOKAJK), Kotli 111000, Pakistan)

  • Ben Niu

    (College of Management, Shenzhen University, Shenzhen 518060, China
    Institute for Entrepreneurship (I f E), Great Bay Area International Institute for Innovation, Shenzhen 518060, China)

Abstract

This research is among the very few studies seeking a focalized examination on the relationship between knowledge sharing within a firm and organizational innovation. This specific study establishes that the knowledge sharing and innovation processes in Islamic banks are integral parts of the survival and progress of business organizations. Knowledge sharing and creativity are essential elements in the development of innovative strategies, but few studies have sought to investigate this relationship. This study proposes a framework with five hypotheses, which predicts the influences of knowledge sharing and organizational innovation on the Pakistani banking sector. This survey scrutinizes the impacts of knowledge sharing and innovation, and its primary objective is to determine how learning in Islamic banks mediates the relationship, and enhances the performance, of Pakistani Islamic banks. The authors distributed a self-administered survey, and randomly selected 554 employees from Mirpur AJ&K, Rawalpindi and Islamabad, Pakistan. We screened and tested the data received using SPSS version 25 for analysis purposes to measure the strength of the relationships which exist among the studied variables. The findings indicate that all of the proposed hypotheses have significant positive relationships, proving that knowledge sharing and organizational innovation have mediating impacts upon organizational learning. The findings can also be used to propose a systematic and holistic framework for attaining an improved performance in Islamic banks through the mediating role of organizational learning. This study offers empirical evidence and original data to examine the connection between knowledge sharing, innovation processes and learning culture in Islamic Banks. The generalizability of these findings is restricted to Islamic banks, and the study delivers valuable insights and suggestions for imminent research studies.

Suggested Citation

  • Jaffar Abbas & Iftikhar Hussain & Safdar Hussain & Sabahat Akram & Imrab Shaheen & Ben Niu, 2019. "The Impact of Knowledge Sharing and Innovation on Sustainable Performance in Islamic Banks: A Mediation Analysis through a SEM Approach," Sustainability, MDPI, vol. 11(15), pages 1-25, July.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:15:p:4049-:d:252041
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/15/4049/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/15/4049/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jaffar Abbas & Jaffar Aman & Mohammad Nurunnabi & Shaher Bano, 2019. "The Impact of Social Media on Learning Behavior for Sustainable Education: Evidence of Students from Selected Universities in Pakistan," Sustainability, MDPI, vol. 11(6), pages 1-23, March.
    2. Touseef Hussain & Jaffar Abbas & Zou Wei & Mohammad Nurunnabi, 2019. "The Effect of Sustainable Urban Planning and Slum Disamenity on The Value of Neighboring Residential Property: Application of The Hedonic Pricing Model in Rent Price Appraisal," Sustainability, MDPI, vol. 11(4), pages 1-20, February.
    3. Xie, Xuemei & Wang, Lijun & Zeng, Saixing, 2018. "Inter-organizational knowledge acquisition and firms' radical innovation: A moderated mediation analysis," Journal of Business Research, Elsevier, vol. 90(C), pages 295-306.
    4. Hassan, M. Kabir & Aliyu, Sirajo, 2018. "A contemporary survey of islamic banking literature," Journal of Financial Stability, Elsevier, vol. 34(C), pages 12-43.
    5. Jaffar Abbas & Saqlain Raza & Mohammad Nurunnabi & Mohd Sobri Minai & Shaher Bano, 2019. "The Impact of Entrepreneurial Business Networks on Firms’ Performance Through a Mediating Role of Dynamic Capabilities," Sustainability, MDPI, vol. 11(11), pages 1-28, May.
    6. Tongurai, Jittima & Vithessonthi, Chaiporn, 2018. "The impact of the banking sector on economic structure and growth," International Review of Financial Analysis, Elsevier, vol. 56(C), pages 193-207.
    7. Xueming Luo & Jie Zhang & Wenjing Duan, 2013. "Social Media and Firm Equity Value," Information Systems Research, INFORMS, vol. 24(1), pages 146-163, March.
    8. Jaffar Aman & Jaffar Abbas & Shahid Mahmood & Mohammad Nurunnabi & Shaher Bano, 2019. "The Influence of Islamic Religiosity on the Perceived Socio-Cultural Impact of Sustainable Tourism Development in Pakistan: A Structural Equation Modeling Approach," Sustainability, MDPI, vol. 11(11), pages 1-27, May.
    9. Jaffar Abbas & Shahid Mahmood & Hashim Ali & Muhammad Ali Raza & Ghaffar Ali & Jaffar Aman & Shaher Bano & Mohammad Nurunnabi, 2019. "The Effects of Corporate Social Responsibility Practices and Environmental Factors through a Moderating Role of Social Media Marketing on Sustainable Performance of Business Firms," Sustainability, MDPI, vol. 11(12), pages 1-33, June.
    10. Akhtar, Ch. Shoaib & Awan, Sajid Hussain & Naveed, Shaheryar & Ismail, Kamariah, 2018. "A comparative study of the application of systems thinking in achieving organizational effectiveness in Malaysian and Pakistani banks," International Business Review, Elsevier, vol. 27(4), pages 767-776.
    11. Narayan, Paresh Kumar & Phan, Dinh Hoang Bach, 2019. "A survey of Islamic banking and finance literature: Issues, challenges and future directions," Pacific-Basin Finance Journal, Elsevier, vol. 53(C), pages 484-496.
    12. Kremer, Hannah & Villamor, Isabel & Aguinis, Herman, 2019. "Innovation leadership: Best-practice recommendations for promoting employee creativity, voice, and knowledge sharing," Business Horizons, Elsevier, vol. 62(1), pages 65-74.
    13. Gee W. Bock & Young-Gul Kim, 2002. "Breaking the Myths of Rewards: An Exploratory Study of Attitudes about Knowledge Sharing," Information Resources Management Journal (IRMJ), IGI Global, vol. 15(2), pages 14-21, April.
    14. Nicolai J. Foss & Kenneth Husted & Snejina Michailova, 2010. "Governing Knowledge Sharing in Organizations: Levels of Analysis, Governance Mechanisms, and Research Directions," Journal of Management Studies, Wiley Blackwell, vol. 47(3), pages 455-482, May.
    15. Franklyn A Manu, 1992. "Innovation Orientation, Environment and Performance: A Comparison of U.S. and European Markets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(2), pages 333-359, June.
    16. Jerez-Gomez, Pilar & Cespedes-Lorente, Jose & Valle-Cabrera, Ramon, 2005. "Organizational learning capability: a proposal of measurement," Journal of Business Research, Elsevier, vol. 58(6), pages 715-725, June.
    17. Nicky J. Welton & Howard H. Z. Thom, 2015. "Value of Information," Medical Decision Making, , vol. 35(5), pages 564-566, July.
    18. Zamir Iqbal & Abbas Mirakhor, 2017. "Ethical Dimensions of Islamic Finance," Palgrave Studies in Islamic Banking, Finance and Economics, Palgrave Macmillan, number 978-3-319-66390-6, December.
    19. Turner, Simon & Higginson, Juliet & Oborne, C. Alice & Thomas, Rebecca E. & Ramsay, Angus I.G. & Fulop, Naomi J., 2014. "Codifying knowledge to improve patient safety: A qualitative study of practice-based interventions," Social Science & Medicine, Elsevier, vol. 113(C), pages 169-176.
    20. Michael J. Tippins & Ravipreet S. Sohi, 2003. "IT competency and firm performance: is organizational learning a missing link?," Strategic Management Journal, Wiley Blackwell, vol. 24(8), pages 745-761, August.
    21. Syed Talib Hussain & Jaffar Abbas & Shen Lei & Muhammad Jamal Haider & Tayyaba Akram, 2017. "Transactional leadership and organizational creativity: Examining the mediating role of knowledge sharing behavior," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1361663-136, January.
    22. Sheng, Margaret L. & Chien, Iting, 2016. "Rethinking organizational learning orientation on radical and incremental innovation in high-tech firms," Journal of Business Research, Elsevier, vol. 69(6), pages 2302-2308.
    23. Muhammad Naeem Anjum & Bi Xiuchun & Jaffar Abbas & Zhang Shuguang, 2017. "Analyzing predictors of customer satisfaction and assessment of retail banking problems in Pakistan," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1338842-133, January.
    24. Bilgihan, Anil & Barreda, Albert & Okumus, Fevzi & Nusair, Khaldoon, 2016. "Consumer perception of knowledge-sharing in travel-related Online Social Networks," Tourism Management, Elsevier, vol. 52(C), pages 287-296.
    25. Anthony J. Dibella & Edwin C. Nevis & Janet M. Gould, 1996. "Understanding Organizational Learning Capability," Journal of Management Studies, Wiley Blackwell, vol. 33(3), pages 361-379, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ximing Yin & Jin Chen & Chuang Zhao, 2019. "Double Screen Innovation: Building Sustainable Core Competence through Knowledge Management," Sustainability, MDPI, vol. 11(16), pages 1-16, August.
    2. Suzaini Zaid & Laila Medina Zaid & Masoud Esfandiari & Zahiruddin Fitri Abu Hasan, 2022. "Green roof maintenance for non-residential buildings in tropical climate: case study of Kuala Lumpur," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 2471-2496, February.
    3. Riaqa Mubeen & Dongping Han & Jaffar Abbas & Iftikhar Hussain, 2020. "The Effects of Market Competition, Capital Structure, and CEO Duality on Firm Performance: A Mediation Analysis by Incorporating the GMM Model Technique," Sustainability, MDPI, vol. 12(8), pages 1-18, April.
    4. Piyachart Phiromswad & Sabin Srivannaboon & Pattarake Sarajoti, 2022. "The interaction effects of automation and population aging on labor market," PLOS ONE, Public Library of Science, vol. 17(2), pages 1-16, February.
    5. Nourhane Merabet & Lina Chouichi & Kaouther Kerboua, 2022. "Numerical design and simulation of a thermodynamic solar solution for a pilot residential building at the edge of the sun-belt region," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(11), pages 12582-12608, November.
    6. Sidney Mangenda Tshiaba & Nianxin Wang & Sheikh Farhan Ashraf & Mehrab Nazir & Nausheen Syed, 2021. "Measuring the Sustainable Entrepreneurial Performance of Textile-Based Small–Medium Enterprises: A Mediation–Moderation Model," Sustainability, MDPI, vol. 13(19), pages 1-19, October.
    7. Jun Zhang & Jiangquan Wang & Linling Zhang & Lei Zhao, 2022. "Impact of industrialization on China’s regional energy security in the New Era," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(6), pages 8418-8440, June.
    8. Edi Suandi & Herri & Yulihasri & Syafrizal, 2023. "Evaluating the relationship between entrepreneurial marketing, competitive advantage, and Islamic banks performance," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(3), pages 599-614, September.
    9. Shi Qiao & Qiankun Wang, 2021. "The Effect of Relational Capital on Organizational Performance in Supply Chain: The Mediating Role of Explicit and Tacit Knowledge Sharing," Sustainability, MDPI, vol. 13(19), pages 1-17, September.
    10. Maira Abrar & Sohail Abbas & Shazia Kousar & Muhammad Mushtaq, 2023. "Investigation on the Effects of Customer Knowledge, Political Support, and Innovation on the Growth of Islamic Banking System: a Case Study of Pakistan," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 946-965, June.
    11. Salem AlAbri & Seyedeh Khadijeh Taghizadeh & Golam Mostafa Khan & Syed Abidur Rahman, 2022. "Exploratory innovation, exploitative innovation and operational performance: influence of informal social relations in environmental competitiveness," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(3), pages 1223-1244, June.
    12. Jaffar Abbas & Qingyu Zhang & Iftikhar Hussain & Sabahat Akram & Aneeqa Afaq & Muhammad Afzal Shad, 2020. "Sustainable Innovation in Small Medium Enterprises: The Impact of Knowledge Management on Organizational Innovation through a Mediation Analysis by Using SEM Approach," Sustainability, MDPI, vol. 12(6), pages 1-19, March.
    13. Odeh Al-Jayyousi & Evren Tok & Shereeza Mohamed Saniff & Wan Norhaniza Wan Hasan & Noora Abdulla Janahi & Abdurahman J. Yesuf, 2022. "Re-Thinking Sustainable Development within Islamic Worldviews: A Systematic Literature Review," Sustainability, MDPI, vol. 14(12), pages 1-26, June.
    14. Zhikang Xie & Xinglin Liu & Hina Najam & Qinghua Fu & Jawad Abbas & Ubaldo Comite & Laura Mariana Cismas & Andra Miculescu, 2022. "Achieving Financial Sustainability through Revenue Diversification: A Green Pathway for Financial Institutions in Asia," Sustainability, MDPI, vol. 14(6), pages 1-16, March.
    15. Felix Kipkosgei & Seung Yeon Son & Seung-Wan Kang, 2020. "Coworker Trust and Knowledge Sharing among Public Sector Employees in Kenya," IJERPH, MDPI, vol. 17(6), pages 1-17, March.
    16. Muhammad Nazmul Hoque & Muhammad Khalilur Rahman & Jamaliah Said & Farhana Begum & Mohammad Mainul Hossain, 2022. "What Factors Influence Customer Attitudes and Mindsets towards the Use of Services and Products of Islamic Banks in Bangladesh?," Sustainability, MDPI, vol. 14(8), pages 1-19, April.
    17. Alnafrah, Ibrahim & Mouselli, Suliman, 2021. "Revitalizing blockchain technology potentials for smooth academic records management and verification in low-income countries," International Journal of Educational Development, Elsevier, vol. 85(C).
    18. Jahangir Hamzavi, 2023. "Developing a comprehensive model for the knowledge productivity in electronic word-of-mouth marketing for banks," SN Business & Economics, Springer, vol. 3(2), pages 1-29, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jaffar Abbas & Qingyu Zhang & Iftikhar Hussain & Sabahat Akram & Aneeqa Afaq & Muhammad Afzal Shad, 2020. "Sustainable Innovation in Small Medium Enterprises: The Impact of Knowledge Management on Organizational Innovation through a Mediation Analysis by Using SEM Approach," Sustainability, MDPI, vol. 12(6), pages 1-19, March.
    2. Nourhane Merabet & Lina Chouichi & Kaouther Kerboua, 2022. "Numerical design and simulation of a thermodynamic solar solution for a pilot residential building at the edge of the sun-belt region," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(11), pages 12582-12608, November.
    3. Jiménez-Jiménez, Daniel & Sanz-Valle, Raquel, 2011. "Innovation, organizational learning, and performance," Journal of Business Research, Elsevier, vol. 64(4), pages 408-417, April.
    4. Segla Roch Cedrique Zossou & Patrice Ygue Adegbola & Brice Tiburce Oussou & Gustave Dagbenonbakin & Roch Mongbo, 2021. "Modelling smallholder farmers’ preferences for soil fertility management technologies in Benin: A stated preference approach," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-25, June.
    5. Jehn-Yih Wong & Ming-Lee Hsiung & Shu-Ju Lee & Chia-Ying ChouHuang, 2021. "The Relationship between Endurance Involvement and Travel Behavior in Camping and the Moderating Effect of Place Attachment," Sustainability, MDPI, vol. 13(9), pages 1-16, April.
    6. Jaffar Abbas & Shahid Mahmood & Hashim Ali & Muhammad Ali Raza & Ghaffar Ali & Jaffar Aman & Shaher Bano & Mohammad Nurunnabi, 2019. "The Effects of Corporate Social Responsibility Practices and Environmental Factors through a Moderating Role of Social Media Marketing on Sustainable Performance of Business Firms," Sustainability, MDPI, vol. 11(12), pages 1-33, June.
    7. Sirén, Charlotta & Kohtamäki, Marko, 2016. "Stretching strategic learning to the limit: The interaction between strategic planning and learning," Journal of Business Research, Elsevier, vol. 69(2), pages 653-663.
    8. Riaqa Mubeen & Dongping Han & Jaffar Abbas & Iftikhar Hussain, 2020. "The Effects of Market Competition, Capital Structure, and CEO Duality on Firm Performance: A Mediation Analysis by Incorporating the GMM Model Technique," Sustainability, MDPI, vol. 12(8), pages 1-18, April.
    9. Algarni, Mohammad A. & Ali, Murad & Leal-Rodríguez, Antonio L. & Albort-Morant, Gema, 2023. "The differential effects of potential and realized absorptive capacity on imitation and innovation strategies, and its impact on sustained competitive advantage," Journal of Business Research, Elsevier, vol. 158(C).
    10. Bertschek, Irene & Kesler, Reinhold, 2022. "Let the user speak: Is feedback on Facebook a source of firms’ innovation?," Information Economics and Policy, Elsevier, vol. 60(C).
    11. Mohamed E. Chaffai, 2022. "New evidence on Islamic and conventional bank efficiency: A meta‐regression analysis," Bulletin of Economic Research, Wiley Blackwell, vol. 74(1), pages 221-246, January.
    12. Zahid Sarwar & Muhammad Asif Khan & Zhen Yang & Adnan Khan & Muhammad Haseeb & Aaqib Sarwar, 2021. "An Investigation of Entrepreneurial SMEs’ Network Capability and Social Capital to Accomplish Innovativeness: A Dynamic Capability Perspective," SAGE Open, , vol. 11(3), pages 21582440211, July.
    13. Covin, Jeffrey G. & Garrett, Robert P. & Kuratko, Donald F. & Shepherd, Dean A., 2015. "Value proposition evolution and the performance of internal corporate ventures," Journal of Business Venturing, Elsevier, vol. 30(5), pages 749-774.
    14. Nivo Ravaonorohanta & Mohammad Refakar, 2021. "Target Social Media Presence and Its Effects on Acquirers’ Decision," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(2), pages 1-1, February.
    15. Maria Obeso & Maria Sarabia, 2018. "Knowledge and Enterprises in Developing Countries: Evidences from Chile," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(3), pages 854-870, September.
    16. Abbasi, Kashif Raza & Adedoyin, Festus Fatai & Abbas, Jaffar & Hussain, Khadim, 2021. "The impact of energy depletion and renewable energy on CO2 emissions in Thailand: Fresh evidence from the novel dynamic ARDL simulation," Renewable Energy, Elsevier, vol. 180(C), pages 1439-1450.
    17. Jaffar Aman & Jaffar Abbas & Shahid Mahmood & Mohammad Nurunnabi & Shaher Bano, 2019. "The Influence of Islamic Religiosity on the Perceived Socio-Cultural Impact of Sustainable Tourism Development in Pakistan: A Structural Equation Modeling Approach," Sustainability, MDPI, vol. 11(11), pages 1-27, May.
    18. Che Wan Jasimah bt Wan Mohamed Radzi & Hashem Salarzadeh Jenatabadi & Huang Hui & Farihah Abu Kasim & Son Radu, 2013. "Explore Linkage between Knowledge Management and Organizational Performance in Asian Food Manufacturing Industry," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 3(8), pages 1753-1769, August.
    19. Alexandra Luciana GUÞÃ, 2013. "Organizational Learning And Performance. A Conceptual Model," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 7(1), pages 547-556, November.
    20. Wayne H. Stewart Jr. & Ruth C. May & Donna E. Ledgerwood, 2015. "Do You Know What I Know? Intent to Share Knowledge in the US and Ukraine," Management International Review, Springer, vol. 55(6), pages 737-773, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:15:p:4049-:d:252041. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.