Cross-functional knowledge sharing, coordination and firm performance: the role of cross-functional competition

Abstract

This study advances extant literature in cross-functional knowledge sharing by developing and testing a model of coopetition that examines (1) the relationships of various coordination mechanisms (formalization, lateral relations, informal networking, and shared vision) with knowledge sharing, (2) the moderating effect of cross-functional competition on these relationships, (3) and the mediating effect of organizational innovativeness on the relationship between cross-functional knowledge sharing and firm performance. Results from a sample of 224 large firms in a transition economy show that lateral relations, informal networking, and shared vision as coordination mechanisms relate significantly to cross-functional knowledge sharing, whereas formalization does not. The findings also indicate a moderating effect of cross-functional competition for lateral relations and informal networking but not for formalization or shared vision. Finally, organizational innovativeness partially mediates the relationship between cross-functional knowledge sharing and firm performance. These findings lead to several theoretical and managerial implications.