International Journal of Academic Research in Business and Social Sciences

search-icon

Examining the Impact of Knowledge Sharing on Malaysia's Manufacturing Sector's Competitive Advantage

Open access

Ang Hong Loong, Faerozh Madli, Ivana Chandra Voo, Pang Yeng Yuan, Janice Ong May Li, Norshikin Zainal Abidin

Pages 2091-2108 Received: 01 Jul, 2023 Revised: 02 Aug, 2023 Published Online: 04 Sep, 2023

http://dx.doi.org/10.46886/IJARBSS/v13-i9/8399
The present research was an exploratory investigation aimed at examining the impact of tacit and explicit knowledge sharing on the competitive advantage of manufacturing firms operating in Malaysia. The findings revealed that the study supports positive relationships between tacit and explicit knowledge sharing and competitive advantage (i.e., cost, quality, delivery, and flexibility), which is consistent with earlier research. The present study investigated the relationships between tacit and explicit knowledge sharing and competitive advantage, as these constructs have been identified as one of the most extensively researched topics since the inception of organizational theory. However, this study’s findings indicate that there is no significant relationship between tacit knowledge sharing and the variables of quality and flexibility that determine competitive advantage. This study employed a quantitative methodology utilizing a self-administered questionnaire. The study aims to provide insights into the significance of tacit and explicit knowledge as the primary elements of knowledge sharing, and a crucial prerequisite for enhancing a manufacturing firm’s competitive advantage. Using Partial Least Squares structural equation modelling, 198 manufacturing company samples were collected and analyzed. As a result, the current study has the potential to correctly describe the performance of Malaysian manufacturing firms and it is thought to give a credible depiction of their current situation.
Abdullah, A. M., Arshad, R., & Hussin, Z. (2021). Examining the role of knowledge sharing on organizational performance in the Malaysian public sector. International Journal of Public Administration, 44(7), 610-624.
Abdul-Rashid, S. H., Sakundarini, N., Ghazilla, R. A. R., & Thurasamy, R. (2017). The impact of sustainable manufacturing practices on sustainability performance: Empirical evidence from Malaysia. International Journal of Operations & Production Management, 37(2), 182-204.
Adams, G. L., Lamont, B. T. (2003), "Knowledge management systems and developing sustainable competitive advantage", Journal of Knowledge Management, 7 (2), 142-154.
Agha, S., Alrubaiee, L., & Jamhour, M. (2012). Effect of core competence on competitive advantage and organizational performance. International Journal of Business and management, 7(1), 192.
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.
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.
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., Yusoff, R. Z., & Kowang, T. O. (2021). A review of the impact of organizational culture on knowledge sharing in Malaysian organizations. International Journal of Business and Society, 22(S1), 1-15.
Argote, L. (2013). Organizational learning: Creating, retaining and transferring knowledge. Springer Science & Business Media.
Argote, L., & Ingram, P. (2000). Knowledge transfer: A basis for competitive advantage in firms. Organizational behavior and human decision processes, 82(1), 150-169.
Asada, H., Nixon, S., & Koen, V. (2017). Boosting productivity in Malaysia. Organisation for Economic Co-operation and Development, Economics Department Working Papers No. 1370, 2.
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.
Barletta, I., Berlin, C., Despeisse, M., Van Voorthuysen, E., & Johansson, B. (2018). A Methodology to Align Core Manufacturing Capabilities with Sustainable Manufacturing Strategies. Procedia CIRP, 69(1), 242-247.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of management, 17(1), 99-120.
Barney, J. B., & Clark, D. N. (2007). Resource-based theory: Creating and sustaining competitive advantage. New York: Oxford University Press.
Barney, J. B. (2014). Gaining and sustaining competitive advantage. Pearson higher ed.
Beske, P., Land, A., & Seuring, S. (2014). Sustainable supply chain management practices and dynamic capabilities in the food industry: A critical analysis of the literature. International Journal of Production Economics, 152, 131-143.
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.
Boyer, K. K., & Lewis, M. W. (2002). Competitive priorities: investigating the need for trade?offs in operations strategy. Production and operations management, 11(1), 9-20.
Breznik, L., & Lahovnik, M. (2016). Dynamic capabilities and competitive advantage: Findings from case studies. Management: journal of contemporary management issues, 21(Special issue), 167-185.
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.
Cabrera, A., Collins, W. C., & Salgado, J. F. (2017). Knowledge sharing and innovation performance: A meta-analysis. Journal of Business Research, 70, 302-314.
Cabrera, A., Elena-Mendez, J. A., & Prado-Román, M. D. (2022). Knowledge sharing and innovation performance: The mediating role of absorptive capacity. Journal of Knowledge Management, 26(1), 68-84.
Calik, E., & Bardudeen, F. (2016). A measurement scale to evaluate sustainable innovation performance in manufacturing organizations. Procedia CIRP, 40, 449-454.
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.
Chandra, A., & Gogoi, M. K. (2021). Knowledge sharing and innovation in organizations: A review and future research agenda. International Journal of Innovation and Learning, 30(4), 478-496.
Cheng, J. H., Yeh, C. H., & Tu, C. W. (2008). Trust and knowledge sharing in green supply chains. Supply Chain Management: An International Journal, 13(4), 283-295.
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
Cohen, J. (1988). Statistical Power Analysis for the Behavioral Sciences. (2nd edition). Hillsdale, NJ: Lawrence Earlbaum Associates.
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. (2022). Monthly Manufacturing Statistics Malaysia, September 2022. Retrieved from
https://www.dosm.gov.my/v1/index.php?r=column/cthemeByCat&cat=90&bul_id=cTBaZTFnRm54MHZSSWUvSW94dWxWQT09&menu_id=SjgwNXdiM0JlT3Q2TDBlWXdKdUVldz09
Davenport, T. H., & Prusak, L. (2013). Working knowledge: How organizations manage what they know. Harvard Business Press.
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
Fainshmidt, S., Wenger, L., Pezeshkan, A., & Mallon, M. R. (2019). When do dynamic capabilities lead to competitive advantage? The importance of strategic fit. Journal of Management Studies, 56(4), 758-787.
Felin, T., & Hesterly, W. S. (2007). The knowledge-based view, nested heterogeneity, and new value creation: Philosophical considerations on the locus of knowledge. Academy of Management Review, 32, 195–218.
Ferdows, K., Vereecke, A., & De Meyer, A. (2016). Delayering the global production network into congruent subnetworks. Journal of Operations Management, 41, 63-74.
Ferrer-Lorenzo, J. R., Abella-Garces, S., & Maza-Rubio, T. (2018). Competitive advantage differences between firms belonging to a business group and independent companies in the Spanish wine industry. Economía Agraria y Recursos Naturales-Agricultural and Resource Economics, 17(2), 105-132.
Fredericks, E. (2005). Infusing flexibility into business-to-business firms: A contingency theory and resource-based view perspective and practical implications. Industrial Marketing Management, 34(6), 555-565.
Gao, T., He, M., & Zhang, X. (2021). Supply chain agility, environmental uncertainty, and firm performance: The moderating role of dynamic capabilities. Journal of Cleaner Production, 314, 128071.
Gold, S., Schodl, R., & Reiner, G. (2017). Cumulative manufacturing capabilities in Europe: Integrating sustainability into the sand cone model. Journal of Cleaner Production, 166, 232-241.
Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic management journal, 17(S2), 109-122.
Gunasekaran, A., & Sarhadi, M. (1998). Implementation of activity-based costing in manufacturing. International Journal of Production Economics, 56, 231-242.
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.
Hejase, H. J., Haddad, Z., Hamdar, B., Ali, R. A., Hejase, A. J., & Beyrouti, N. (2014). Knowledge Sharing: Assessment of Factors Affecting Employee Motivation and Behavior in the Lebanese Organizations. Journal of Scientific Research & Reports (JSRR), 3, 1549-1593.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2007). Strategic management: competitiveness and globalization. Cengage Learning.
Hooshyar, B. (2010). Strategic Knowledge Management and its effects on Cost Management in projects. In Proceedings of the 2nd International Conference on Manufacturing Engineering, Quality and Production Systems.
Huang, Q., Davison, R. M., & Gu, J. (2011). The impact of trust, guanxi orientation and face on the intention of Chinese employees and managers to engage in peer?to?peer tacit and explicit knowledge sharing. Information Systems Journal, 21(6), 557-577.
Huang, X., Hsieh, J. J., & He, W. (2014). Expertise dissimilarity and creativity: The contingent roles of tacit and explicit knowledge sharing. Journal of Applied Psychology, 99(5), 816.
Hung, S. C., Hung, S. W., & Lin, M. J. J. (2015). Are alliances a panacea for SMEs? The achievement of competitive priorities and firm performance. Total Quality Management & Business Excellence, 26(1-2), 190-202.
Jabbour, C. J. C., Da Silva, E. M., Paiva, E. L., & Santos, F. C. A. (2012). Environmental management in Brazil: is it a completely competitive priority?. Journal of Cleaner Production, 21(1), 11-22.
Jabbour, C. J. C., Jugend, D., de Sousa Jabbour, A. B. L., Gunasekaran, A., & Latan, H. (2015). Green product development and performance of Brazilian firms: measuring the role of human and technical aspects. Journal of Cleaner Production, 87, 442-451.
Joo, B. K., & Park, Y. (2021). Examining the effects of knowledge sharing on innovative performance in the healthcare sector. Journal of Healthcare Management, 66(5), 331-345.
Johnson, T. L., Fletcher, S. R., Baker, W., & Charles, R. L. (2019). How and why we need to capture tacit knowledge in manufacturing: Case studies of visual inspection. Applied ergonomics, 74, 1-9.
Kah, K. N., Hussin, H., & Abdullah, N. (2018). BEST PRACTICES OF OSH COMPLIANCE IN THE SME MELAKA MANUFACTURING SECTORS. The Journal of Technology Management and Technopreneurship (JTMT), 6(1), 11-30.
Karimi, E., & Rafiee, M. (2014). Analyzing the Impact of Supply Chain Management Practices on Organizational Performance through Competitive Priorities (Case Study: Iran Pumps Company). International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(1), 1-15.
Khoo, N. K., Hussin, H., & Abdullah, N. (2018). Managing Occupational Safety and Health (Osh) Culture Practices At Small And Medium (S&M) Malaysia Manufacturing Sector. Journal of Human Capital Development (JHCD), 11(1), 79-90.
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.
Kumar, J. A., & Ganesh, L. S. (2011). Balancing knowledge strategy: codification and personalization during product development. Journal of Knowledge Management.
Lee, S., Park, G., Yoon, B., & Park, J. (2010). Open innovation in SMEs - An intermediated network model. Research policy, 39(2), 290-300.
Lee, R. (2020). The Edge Malaysia – IR4.0 in Malaysia: The Challenges. Retrieved from https://www.theedgemarkets.com/article/cover-story-ir40-malaysia-challenges
Liao, C. C., Wang, H. Y., Chuang, S. H., Shih, M. L., & Liu, C. C. (2010). Enhancing knowledge management for R&D innovation and firm performance: An integrative view. African Journal of Business Management, 4, 3026–3038.
Lin, Y. H., & Tseng, M. L. (2016). Assessing the competitive priorities within sustainable supply chain management under uncertainty. Journal of cleaner production, 112, 2133-2144.
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.
Longoni, A., & Cagliano, R. (2015). Environmental and social sustainability priorities: Their integration in operations strategies. International Journal of Operations & Production Management, 35(2), 216-245.
Lopez-Gamero, M. D., Molina-Azorin, J. F., & Claver-Cortes, E. (2009). The whole relationship between environmental variables and firm performance: Competitive advantage and firm resources as mediator variables. Journal of environmental management, 90(10), 3110-3121.
Lukito, H., Salleh, M. F. M., & Husin, N. A. (2016). Organizational learning as moderating variable between human resource information system and public universities’ performance. Chinese Business Review, 15(11), 524-537.
Magnier-Watanabe, R., & Benton, C. (2017). Management innovation and firm performance: The mediating effects of tacit and explicit knowledge. Knowledge Management Research & Practice, 15(3), 325-335.
Malaysian Investment Development Authority. (2020). Media Release: Malaysian Investment Performance Report 2019. Retrieved from
http://www.mida.gov.my/home/5844/news/media-release--malaysian-investment-performance-report-2017/
McEvily, B., & Zaheer, A. (1999). Bridging ties: A source of firm heterogeneity in competitive capabilities. Strategic management journal, 20(12), 1133-1156.
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.
Mohajan, H. K. (2016). Sharing of tacit knowledge in organizations: A Review. American Journal of Computer Science and Engineering, 3(2), 6-19.
Mohamad, J., & Mulok, M. Z. A. (2020). Nurturing ingenuity and innovation. Economics, Trade and Regional Integration.
Nadkarni, S., & Narayanan, V. K. (2007). Strategic schemas, strategic flexibility, and firm performance: The moderating role of industry clockspeed. Strategic management journal, 28(3), 243-270.
Nagulendran, K., Padfield, R., & Campos-Arceiz, A. (2016). A multi-stakeholder strategy to identify conservation priorities in Peninsular Malaysia. Cogent Environmental Science, 2.
Nieves, J., Quintana, A., & Osorio, J. (2014). Knowledge-based resources and innovation in the hotel industry. International Journal of Hospitality Management, 38, 65-73.
Nonaka, I., & Takeuchi, H. (2018). The knowledge-creating company: How Japanese companies create the dynamics of innovation. Oxford University Press.
Ocampo, J. R., Hernández-Matías, J. C., & Vizan, A. (2017). A method for estimating the influence of advanced manufacturing tools on the manufacturing competitiveness of Maquiladoras in the apparel industry in Central America. Computers in Industry, 87, 31-51.
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.
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.
Pambreni, Y., Khatibi, A., Azam, S., & Tham, J. (2019). The influence of total quality management toward organization performance. Management Science Letters, 9(9), 1397-1406.
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.
Peng, X. D., Schroeder, R. G., & Shah, R. (2011). Competitive priorities, plant improvement and innovation capabilities, and operational performance: A test of two forms of fit. International Journal of Operations & Production Management, 31(5), 484-510.
Porter, M. E. (1990). The competitive advantages of nations. London.
Porter, M. E. (1985). The competitive advantage: Creating and sustaining superior performance. New York: Free Press.
Prester, J. (2013). Competitive priorities, capabilities and practices of best performers: evidence from GMRG 4 data. Total Quality Management & Business Excellence, 24(1-2), 138-157.
Priem, R. L., & Butler, J. E. (2001). Is the resource-based “view” a useful perspective for strategic management research? Academy of management review, 26(1), 22-40.
Rehman, W. U., Ilyas, M., & Asghar, N. (2015). Knowledge sharing, knowledge management strategy and performance: A knowledge-based view. Pakistan Economics and Social Review, 53(2), 177-202.
Robbins, S. P., & Judge, T. A. (2019). Essentials of organizational behavior. Pearson.
Rosenfeld, S. A. (2017). Competitive manufacturing: New strategies for regional development. Routledge.
Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341-350.
Seidler-de Alwis, R., Hartmann, E., & Gemunden, H. G. (2004). The role of tacit knowledge in innovation management. In Competitive Paper submitted to the 20th Annual IMP Conference in Copenhagen, 2th-4th September.
Seidler-de Alwis, R., & Hartmann, E. (2008). The use of tacit knowledge within innovative companies: knowledge management in innovative enterprises. Journal of Knowledge Management.
Sharkie, R. (2003). Knowledge creation and its place in the development of sustainable competitive advantage. Journal of Knowledge Management, 7(1), 20-31.
Sidin, J. P., & Sham, J. J. (2015). Innovation in realizing quality of production in Malaysia. Asian Social Science, 11(3), 57-67.
Tang, V. (2018). Digitalising manufacturing industry. Retrieved from
https://www.nst.com.my/opinion/columnists/2018/11/433782/digitalising-manufacturing-industry
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.
Teece, D., Peteraf, M., & Leih, S. (2016). Dynamic capabilities and organizational agility: Risk, uncertainty, and strategy in the innovation economy. California Management Review, 58(4), 13-35.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic management journal, 18(7), 509-533.
The Asia Foundation. (2022). Recommendations Towards Improving Technical and Vocational Education and Training in Malaysia. Retrieved from
https://asiafoundation.org/publication/recommendations-towards-improving-technical-and-vocational-education-and-training-in-malaysia/
Timilsina, B., Forsen, N., Takala, J., & Malek, N. A. A. (2016). Which one to choose multi focus or trade-off among competitive priorities? Evidence from finnish SMEs. Management and Production Engineering Review, 7(1), 77-88.
Tocan, M. C. (2012). Knowledge based economy assessment. Journal of Knowledge Management, Economics and Information Technology, 2(5).
Venkitachalam, K., & Willmott, H. (2016). Determining strategic shifts between codification and personalization in operational environments. Journal of Strategy and Management.
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, Z., & Wang, N. (2012). Knowledge sharing, innovation and firm performance. Expert systems with applications, 39(10), 8899-8908.
Yi, Y., Gu, M., & Wei, Z. (2017). Bottom-up learning, strategic flexibility and strategic change. Journal of Organizational Change Management, 30(2), 161-183.
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