A Meta-Analysis on the Relationship Between Innovation Capability & Knowledge Sharing and Role of Innovation Capability on Financial Performance of Firms

Abstract

Discussing the relationship between the many innovation constructs, such as knowledge sharing and innovation capability, and its effect on financial performance, previous investigation has led to inconsistent results, that provide researchers and practitioners potentially inconclusive results in the public domain. The aim of this study is to determine the relation between knowledge sharing and innovation capability and understand the role of innovation capability on the financial performance of organizations. Further, this paper also unfolds the acceptable definition of innovation and its constructs in reference to different perspectives from the recently published literature. In the systematic literature review process, more than 50 investigations were identified, but, finally, 28 were shortlisted with the relevant data to conduct the meta-analysis study. The database of the HSE University library and Google Scholar were used for the collection of studies. The paper used a fixed effect model for the analysis of the relation between the constructs. The comprehensive meta-analysis was used for the analysis. The key findings indicate a positive and significant relation among knowledge sharing and innovation capability. Moreover, in the other finding, the result also concludes the positive role of innovation capability on the financial performance of the firms. The findings of this study can be used by policymakers and management to create policies and allocate finances for innovation projects.