Examining the Impact of The Motivation and Trust on the SMEs’ Innovation Capability: The Mediating Role of Knowledge Sharing

The study is planned to examine the impact of the trust and motivation on the innovation capability of any organization. Additionally, the study has also examined the mediating role of knowledge sharing in the relationship between the trust, motivation and innovation capability. The study has used the survey based methodology and we had distributed total 450 questionnaires among the managers and CEO’s, and we have received back total 410 questionnaires out of 410 eight questionnaires were having some missing information so by following the study of Hair et al. (2017) we excluded those eight questioners and used 402 questionnaires for further analysis, the response rate for this survey was 89.3%. according to the study of Hair et al. (2017) the minimum response rate for the analysis must be 33%. The results indicate that the managers and owners of the SMES can improve innovation capability through promoting knowledge sharing activities. A comprehensive framework of research has been offered by the current study for implementing sharing of knowledge to increase innovation capability. It has been attempted by several firms to develop a knowledge sharing environment. However, the value of knowledge sharing has been ignored in developing innovation capability. Owners and managers of SMES should work on promoting an environment for effective knowledge sharing to achieve a competitive edge. This can be done through increasing the willingness of employees for knowledge sharing.