Knowledge sharing, product innovation, process innovation, banks, Lebanon.


Architecture | Business | Engineering | Life Sciences


Knowledge is considered the main critical resource for competitive advantage. By encouraging a knowledge‐sharing culture within service settings such as banks, the quality of service is enhanced and the opportunities for innovation is created. This research seeks to test the relationship between knowledge sharing (KS) and innovation. A quantitative and explanatory analysis was done by using Structural equations modeling (SEM) to investigate the effect of KS on process and product innovation. Research data were collected through a survey method. The sample result was determined through a probability stratified sampling technique of about 310 employees at 27 banks in Lebanon. The findings confirmed the vital role played by KS in enhancing innovation. The main implications of the research emphasize that knowledge sharing is the most important predictor of process innovation followed by product innovation. The findings highlight how KS produces better outcomes for banks by mobilizing employees to engage in the innovation of products and processes. It is recommended that banks promote KS by establishing a suitable climate that helps employees to meet and communicate ideas effectively. This motivates them to get involve in process and product innovation, by stimulating them to look for novel ideas and adopt advanced technologies. These findings extend the understanding of the processes through which sharing knowledge stimulate innovation, and also stress on the benefits gained by cultivating knowledge sharing processes to generate more innovative outcomes.





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