The effect of internal social capital on knowledge sharing

On the basis of the Chinese schema, we propose that internal social capital manifests itself in the form of ‘guanxi’, trust, and norms. We discuss the concept of interpersonal relationships within the context of Chinese culture by embedding the guanxi concept into a model to investigate the relationships among the three dimensions. We used a survey-based methodology to collect data from 230 employees of the top 100 high-technology firms in Taiwan and structural equation modelling (SEM) with LISREL 8.54 to examine the hypotheses model. The results indicated that at the individual level, guanxi is positively related to both trust and norms, which are also positively related to knowledge sharing. The mediating effects of trust and norms were also found to be significant. Trust directly influences knowledge sharing, and plays a mediating role between knowledge sharing and guanxi. This suggests that knowledge sharing is likely to occur when trust exists among employees. The results further indicate that norms mediate the relationship between guanxi and knowledge sharing. Guanxi among members influences knowledge sharing; therefore, organizations require a feasible solution using the relational norms mechanism. Previous studies have either emphasized the direct influence of social capital or regarded all variables to be of similar importance for knowledge sharing; however, no clear explanations have been provided explaining its influence on knowledge sharing. We advance understanding of why social capital enhances knowledge sharing among employees and the means by which this occurs.