This study was conducted an exploratory study to investigate the extent to which tacit and explicit knowledge sharing affect organizational performance in Malaysia’s manufacturing companies. The findings revealed that the study support positive relationship between tacit and explicit knowledge sharing and organizational performance (i.e., financial, quality, and innovative performance) which consistent as claimed in the previous studies. Tacit and explicit knowledge sharing were examined upon their relationship with organizational performance because they have been clarified as one of the most extensively researched issues since the early development of organizational theory. However, this study’s result has found that tacit knowledge sharing did not have a significant relationship with innovative performance. For the methodology, this study applied quantitative approach through a self-administrated questionnaire and believed to be able to contribute to the importance of tacit and explicit knowledge as a fundamental source of knowledge sharing and a necessary precondition to boost a manufacturing company’s performance. 145 samples of the companies were collected and analyzed using Partial Least Squares structural equation modeling technique. Thus, this study can reflect its current performance and represent the true position of manufacturing companies in Malaysia.
Abdel-Maksoud, A. B. (2004). Manufacturing in the UK: contemporary characteristics and performance indicators. Journal of Manufacturing Technology Management, 15(2), 155-171.
Adaileh, M., & Abualzeat, H. (2017). Impact of knowledge sharing and leakage on innovative performance. Journal of Sustainable Development, 10(1), 92-111.
Ahmed, S., Manaf, N. H. A., & Islam, R. (2017). Measuring quality performance between public and private hospitals in Malaysia. International Journal of Quality and Service Sciences.
Ahuja, I. P. S., & Khamba, J. S. (2008). An evaluation of TPM initiatives in Indian industry for enhanced manufacturing performance. International Journal of Quality & Reliability Management, 25(2), 147-172.
Allameh, S. M., Pool, J. K., Jaberi, A., & Soveini, F. M. (2014). Developing a model for examining the effect of tacit and explicit knowledge sharing on organizational performance based on EFQM approach. Journal of Science & Technology Policy Management, 5(3), 265-280.
Alwis, R. S., & Hartmann, E. (2008). The use of tacit knowledge within innovative companies: Knowledge management in innovative enterprises. Journal of Knowledge Management, 12(1), 133-147.
Ameer, R., & Othman, R. (2012). Sustainability practices and corporate financial performance: A study based on the top global corporations. Journal of Business Ethics, 108, 61-79.
Ancori, B., Bureth, A., & Cohendet, P. (2000). The economics of knowledge: The debate about codification and tacit knowledge. Industrial and Corporate Change, 9, 255–287.
Anuar, A. R., Mansor, W. N. J. W., Din, B. H., Mansor, M. N., Ibrahim, A. Z., Bakar, A. S. A., & Khan, S. J. M. (2016). Addressing Skills Gap in Small-sized Enterprises: Malaysian Case Study. The European Proceedings of Social & Behaivoural Sciences: International Soft Science Conference.
Balconi, M., Pozzali, A., & Viale, R. (2007). The “codification debate” revisited: A conceptual framework to analyze the role of tacit knowledge in economies. Industrial and Corporate Change, 16, 823–849.
Bhuiyan, M. S. H. (2011). Tacit sources of competitive advantages of the leading Chinese companies extracted from the longitudinal analysis of Chinese Internationalisation. Procedia-Social and Behavioral Sciences, 24, 727-736.
Blümm, C. (2013). The importance of tacit knowledge in the innovation process: To build dynamic competitive advantages. Springer-Verlag.
Brundage, M. P., Chang, Q., Li, Y., Arinez, J., & Xiao, G. (2016). Sustainable manufacturing performance indicators for a serial production line. IEEE Transactions on Automation Science and Engineering, 13(2), 676-687.
Calik, E., & Bardudeen, F. (2016). A measurement scale to evaluate sustainable innovation performance in manufacturing organizations. Procedia CIRP, 40, 449-454.
Camison, C., & Lopez, A. V. (2010). An examination of the relationship between manufacturing flexibility and firm performance: The mediating role of innovation. International Journal of Operations & Production Management, 30(8), 853-878.
Camison, C., & Villar-Lopez, A. (2014). Organizational innovation as an enabler of technological innovation capabilities and firm performance. Journal of business research, 67(1), 2891-2902.
Cegarra-Navarro, J. G., Soto-Acosta, P., & Wensley, A. K. (2015). Structured knowledge processes and firm performance: The role of organizational agility. Journal of Business Research, 69(5), 1544-1549.
Chan, A. T., Ngai, E. W., & Moon, K. K. (2017). The effects of strategic and manufacturing flexibilities and supply chain agility on firm performance in the fashion industry. European Journal of Operational Research, 259(2), 486-499.
Chan, T. K., & Abdul-Aziz, A. R. (2017). Financial performance and operating strategies of Malaysian property development companies during the global financial crisis. Journal of Financial Management of Property and Construction, 22(1), 174-191.
Chin, W. W. (1998). The partial least squares approach for structural equation modeling. In G. A. Marcoulides (Ed.), Modern methods for business research (pp. 295–236). London: Lawrence Erlbaum Associates. Retrieved from
https://www.academia.edu/4422050/Handbook_of_Partial_Least_Squares_Concepts_Methods_and_Applications
Chu-Hua, K., Madu, C. N., & Lin, C. (2001). The relationship between supply chain quality management practices and organizational performance. International Journal of Quality & Reliability Management, 18(8), 864-72.
Cohen, J. (1988). Statistical Power Analysis for the Behavioral Sciences. (2nd edition). Hillsdale, NJ: Lawrence Earlbaum Associates.
Conner, K. R., & Prahalad, C. K. (1996). A resource-based theory of the firm: Knowledge versus opportunism. Organization science, 7(5), 477-501.
Dangelico, R. M., Pujari, D., & Pontrandolfo, P. (2017). Green Product Innovation in Manufacturing Firms: A Sustainability?Oriented Dynamic Capability Perspective. Business Strategy and the Environment, 26(4), 490-506.
Department of Statistics Malaysia. (2021). Monthly Manufacturing Statistics Malaysia, September 2021. Retrieved from
https://www.dosm.gov.my/v1/index.php?r=column/cthemeByCat&cat=90&bul_id=cTBaZTFnRm54MHZSSWUvSW94dWxWQT09&menu_id=SjgwNXdiM0JlT3Q2TDBlWXdKdUVldz09
Department of Statistics Malaysia. (2020). Gross Domestic Product (GDP) By State 2020. Retrieved from
https://www.dosm.gov.my/v1/index.php?r=column/cthemeByCat&cat=491&bul_id=YnhhZ2g5QlpZWG9RcVNwTGhLaHE4UT09&menu_id=TE5CRUZCblh4ZTZMODZIbmk2aWRRQT09
Economic Planning Unit. (2020). The Malaysian Economy in Figures 2020 (Revised as at June 2020). Retrieved from https://www.epu.gov.my/sites/default/files/2020-08/MEIF2020.pdf
Fathi, N. M., Eze, U. C., & Goh, G. G. G. (2011). Key determinants of knowledge sharing in an electronics manufacturing firm in Malaysia. Library Review, 60(1), 53-67.
Ganguly, A., Talukdar, A., & Chatterjee, D. (2019). Evaluating the role of social capital, tacit knowledge sharing, knowledge quality and reciprocity in determining innovation capability of an organization. Journal of knowledge management.
Geisler, E., & Wickramasinghe, N. (2009). Principles of Knowledge Management: Theory, Practice, and Cases. United States: M.E. Sharpe, Inc.
Guptara, P. (2017). What should knowledge management focus today? Retrieved from https://www.tallyfox.com/insight/prof-prabhu-guptara-what-should-knowledge-management-focus-today
Hair, J. F. J., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling (PLS_SEM). Thousand Oaks, California: SAGE Publications, Inc.
Hussain, M., Ajmal, M. M., Khan, M., & Saber, H. (2015). Competitive priorities and knowledge management: an empirical investigation of manufacturing companies in UAE. Journal of Manufacturing Technology Management, 26(6), 791-806.
IHS Markit Malaysia Manufacturing PMI. (2021, August 2). Malaysian manufacturing subdued by surging COVID-19 infections. Retrieved from
https://www.markiteconomics.com/Public/Home/PressRelease/4dca3ec1b945464a99275ac07954c17f
Ismail, M. B., & Yusof, Z. M. (2010). The impact of individual factors on knowledge sharing quality. Journal of Organizational Knowledge Management, 13, 1-12.
Ittner, C. D., & Larcker, D. F. (2003). Coming up short on nonfinancial performance measurement. Harvard business review, 81(11), 88-95.
Johannessen, J. A., & Olsen, B. (2009). Systemic knowledge processes, innovation and sustainable competitive advantages. Kybernetes, 38(3/4), 559-580.
Kasbun, N. F., Teh, B. H., & Ong, T. S. (2016). Sustainability Reporting and Financial Performance of Malaysian Public Listed Companies. Institutions and Economies, 8(4), 78-93.
Kogut, B., & Zander, U. (1993). Knowledge of the firm and the evolutionary theory of the multinational corporation. Journal of International Business Studies, 34(6), 516-529.
Lee, K. C., Lee, S., & Kang, I. W. (2005). KMPI: measuring knowledge management performance. Information & management, 42(3), 469-482.
Lee, R. (2020). The Edge Malaysia – IR4.0 in Malaysia: The Challenges. Retrieved from https://www.theedgemarkets.com/article/cover-story-ir40-malaysia-challenges
Lin, Y., & Wu, L. Y. (2014). Exploring the role of dynamic capabilities in firm performance under the resource-based view framework. Journal of business research, 67(3), 407-413.
Malaysian Investment Development Authority. (2018). Media Release: Malaysian Investment Performance Report 2017. Retrieved from
http://www.mida.gov.my/home/5844/news/media-release--malaysian-investment-performance-report-2017/
Malaysia Productivity Corporation. (2021). Productivity Report 2021. Retrieved from https://www.mpc.gov.my/wp-content/uploads/2021/06/Productivity-Report-2021.pdf
Maleti?, M., Maleti?, D., & Gomiš?ek, B. (2016). The impact of sustainability exploration and sustainability exploitation practices on the organisational performance: a cross-country comparison. Journal of cleaner production, 138, 158-169.
March, J. G., & Sutton, R. I. (1997). Organizational performance as a dependent variable. Organization Science, 8(6), 698-706.
Mills, J., Platts, K., & Bourne, M. (2003). Applying resource-based theory: methods, outcomes and utility for managers. International Journal of Operations & Production Management, 23(2), 148-166.
Nagulendran, K., Padfield, R., & Campos-Arceiz, A. (2016). A multi-stakeholder strategy to identify conservation priorities in Peninsular Malaysia. Cogent Environmental Science, 2.
Ngah, R., & Jusoff, K. (2009). Tacit knowledge sharing and SMEs’ organizational performance. International Journal of Economics and Finance, 1(1), 216.
Nieves, J., Quintana, A., & Osorio, J. (2014). Knowledge-based resources and innovation in the hotel industry. International Journal of Hospitality Management, 38, 65-73.
Noruzy, A., Dalfard, V. M., Azhdari, B., Nazari-Shirkouhi, S., & Rezazadeh, A. (2013). Relations between transformational leadership, organizational learning, knowledge management, organizational innovation, and organizational performance: an empirical investigation of manufacturing firms. The International Journal of Advanced Manufacturing Technology, 1-13.
Omar, M. K., Dahalan, N. A., & Yusoff, Y. H. M. (2016). Social media usage, perceived team-efficacy and knowledge sharing behaviour among employees of an oil and gas organisation in Malaysia. Procedia Economics and Finance, 37, 309-316.
Ooi, K. B., Cheah, W. C., Lin, B., & Teh, P. L. (2012). TQM practices and knowledge sharing: An empirical study of Malaysia’s manufacturing organizations. Asia Pacific Journal of Management, 29(1), 59-78.
Oyemomi, O., Liu, S., Neaga, I., & Alkhuraiji, A. (2016). How knowledge sharing and business process contribute to organizational performance: Using the fsQCA approach. Journal of Business Research, 69(11), 5222-5227.
Park, C., Vertinsky, I., & Becerra, M. (2015). Transfers of tacit vs. explicit knowledge and performance in international joint ventures: The role of age. International Business Review, 24(1), 89-101.
Pintelon, L., Pinjala, S. K., & Vereecke, A. (2006). Evaluating the effectiveness of maintenance strategies. Journal of Quality in Maintenance Engineering, 12(1), 7-20.
Ramayah, T., Samat, N., & Lo, M. C. (2011). Market orientation, service quality and organizational performance in service organizations in Malaysia. Asia-Pacific Journal of Business Administration, 3(1), 8-27.
Ramayah, T., Yeap, J. A., & Ignatius, J. (2013). Assessing knowledge sharing among academics: A validation of the knowledge sharing behavior scale (KSBS). Evaluation review, 38(2), 160-187.
Ramli, M. F., & Senin, A. A. (2015). Success factors to reduce orientation and resources-related barriers in university-industry R&D collaboration particularly during development research stages. Procedia – Social and Behavioral Sciences, 172, 375-382.
Roy, S., & Mitra, J. (2018). Tacit and explicit knowledge management and assessment of quality performance of public R&D in emerging economies. Journal of Organizational Change Management.
Saenz, J., Aramburu, N., & Blanco, C. E. (2012). Knowledge sharing and innovation in Spanish and Colombian high-tech firms. Journal of Knowledge Management, 16(6), 919-933.
Sidin, J. P., & Sham, J. J. (2015). Innovation in realizing quality of production in Malaysia. Asian Social Science, 11(3), 57-67.
Tarofder, A. K., Azam, S. M. F., & Jalal, A. N. (2017). Operational or strategic benefits: Empirical investigation of internet adoption in supply chain management. Management Research Review, 40(1), 28-52.
Trading Economics. (2020). Malaysia Manufacturing PMI. Retrieved from https://tradingeconomics.com/malaysia/manufacturing-pmi
Uyar, A. (2009). Quality performance measurement practices in manufacturing companies. The TQM Journal, 21(1), 72-86.
Wang, J. F., Chen, M. Y., Feng, L. J., & Yue, J. J. (2017). The construction of enterprise tacit knowledge sharing stimulation system oriented to employee individual. Procedia engineering, 174, 289-300.
Wang, S., & Noe, R. A. (2010). Knowledge sharing: A review and directions for future research. Human resource management review, 20(2), 115-131.
Wang, Z., & Wang, N. (2012). Knowledge sharing, innovation and firm performance. Expert systems with applications, 39(10), 8899-8908.
Yusof, Z. M., Ismail, M. B., Ahmad, K., & Yusof, M. M. (2012). Knowledge sharing in the public sector in Malaysia: a proposed holistic model. Information Development, 28(1), 43-54.
Zahiid, S. J. (2019). Malaysia’s manufacturing hits six-year low in 2018. Malay Mail. Retrieved from https://www.malaymail.com/news/money/2019/01/02/malaysias-manufacturing-hits-six-year-low-in-2018/1708318
Zeng, J., Phan, C. A., & Matsui, Y. (2015). The impact of hard and soft quality management on quality and innovation performance: An empirical study. International journal of production economics, 162, 216-226.
In-Text Citation: (Ang et al., 2022)
To Cite this Article: Ang, H. L., Fabeil, N. F., & Pang, Y. Y. (2022). The Influence of Tacit and Explicit Knowledge Sharing on Organizational Performance among Manufacturing Companies in Malaysia. International Journal of Academic Research in Business and Social Sciences, 12(3), 543–557.
Copyright: © 2022 The Author(s)
Published by Knowledge Words Publications (www.kwpublications.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
