The impact of knowledge governance on knowledge sharing : The mediating role of the guanxi effect

Purpose – Knowledge governance is an organizational mechanism that formally and informally defines how the firm manages the activities related knowledge, thus it plays a significant influence on knowledge sharing. The purpose of this study is to analyze the impact of knowledge governance, including formal and informal knowledge governance, on knowledge sharing. Then the paper examines the mediating role of the guanxi effect on knowledge governance and knowledge sharing. Design/methodology/approach – Based upon this research, the authors chose to use the logical deductive approach for their hypotheses and analytical frameworks. Questionnaires and interviews were used to collect data from 339 employees in 39 Chinese strategic emerging firms. Finally, regression analysis and structure equation models (SPSS and AMOS) were used for data analysis and hypotheses testing. Findings – This study points to the impact that knowledge governance has on knowledge sharing based on the mediation of the guanxi effect in China. The results first show that knowledge governance, including formal and informal knowledge governance, plays a key role in knowledge sharing; second, that the guanxi effect partly mediates between informal knowledge governance and knowledge sharing; third, the guanxi effect plays a significant mediating role between formal knowledge governance and knowledge sharing. Research limitations/implications – This study presents a framework for Chinese strategic emerging industries to better understand the impact of knowledge governance upon knowledge sharing and thus enhance their firm's guanxi networks to maximize economic and social benefits. The managerial implications are that firms should strengthen knowledge governance to promote employee knowledge sharing and infuse a more harmonious atmosphere to strengthen the positive effects of guanxi among employees. Ultimately, Chinese firms must consider and encourage the benefits of the guanxi effect. This study only investigated 339 employees in 39 organizations located in the central China. It is limited by employees' cognition. In further research, the authors will identify more samples and develop a large‐scale questionnaire to explore these impacts in more detail and thus enhance their current research. Originality/value – It is the first attempt in China to systematically investigate the impact of knowledge governance on knowledge sharing based on the mediation of the guanxi effect. The results provide a theoretical and methodological contribution to the study of knowledge governance and can thus improve managerial practice in an era of knowledge‐based economies.