Impact of knowledge sharing and innovation on performance of organization: evidence from the pharmaceutical industry of Pakistan

Abstract

This research constructs a model to examine knowledge sharing (KS) within Pakistan’s pharmaceutical sector and its impact on innovation, as well as operational performance (OP) and non-financial performance (NFP), with trust as a moderating factor. Employing a quantitative methodology, the study analyzes data from 490 respondents through surveys and investigates the mediating role of innovation in the link between KS and performance. Findings indicate that innovation fully mediates the relationship between KS and OP and NFP, highlighting that KS significantly fosters innovation and consequently enhances performance. The study’s results provide actionable insights for managers on leveraging KS to improve performance and highlight the importance of trust in enhancing the innovation outcomes of knowledge dissemination. This contribution is particularly relevant for the under-explored area of NFP (such the innovation learning process or internal business processes) in the Pakistani pharmaceutical industry. Additionally, it extends the existing literature and serves as a guide for policymakers in designing KS policies. © 2025 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.