Harnessing Collaborative Innovation: How Knowledge Sharing Drives Performance in Philippine Hardware MSMEs

The study examines the mediating effect of knowledge sharing on the relationship between collaborative innovation capabilities and innovation performance within hardware companies in the Philippines. It seeks to fill the gap in local research by exploring how collaborative efforts and knowledge-sharing practices influence the innovation outcomes of micro, small, and medium enterprises (MSMEs) in the hardware sector. A quantitative approach was employed, surveying operational managers from 80 hardware companies in Metro Manila. The study used Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess the relationships between collaborative innovation capabilities, knowledge sharing, and innovation performance. The study found that collaborative innovation capabilities have a significant positive effect on innovation performance. Additionally, knowledge sharing acts as an important mediator, enhancing the effectiveness of collaborative efforts in driving innovation outcomes. This study provides valuable insights into the hardware industry in the Philippines, where there is a lack of local research on the dynamics of collaboration, knowledge sharing, and innovation. It offers practical implications for hardware MSMEs, highlighting the importance of fostering collaboration and implementing effective knowledge-sharing systems to drive innovation and maintain competitiveness in a fast-paced market.