This study explores how kinship employee engagement (KEE) transforms knowledge into tangible performance outcomes in Indonesian cooperatives. It examines the interplay of digital literacy, organizational culture, servant leadership and knowledge sharing, focusing on their mediating and moderating mechanisms.
A quantitative survey was conducted with 282 cooperative employees in South Sulawesi, Indonesia, using purposive sampling. Data were analyzed with structural equation modeling in AMOS, complemented by bootstrapping to test mediation and interaction terms to examine moderation.
Digital literacy, organizational culture and servant leadership positively influence knowledge sharing, which mediates their effects on employee performance. KEE strengthens the relationship between digital literacy and knowledge sharing and enhances the impact of knowledge sharing on employee performance but does not significantly moderate the link between organizational culture and knowledge sharing. Servant leadership alone does not directly improve performance, highlighting the critical role of knowledge exchange in translating resources into results.
This study has several limitations. Its cross-sectional design limits the ability to draw definitive causal conclusions. The reliance on self-reported measures, while common, may introduce common method bias. Moreover, the generalizability of the findings to other cultural contexts or to large, non-cooperative enterprises remains to be established. Future research should consider several directions. First, it should explore the potential “dark side” of KEE, examining situations where strong kinship ties may hinder critical feedback or necessary organizational change. Second, longitudinal designs could be employed to trace the causal pathways proposed in the model over time. Third, replicating this study in other collectivist countries (e.g. in Southeast Asia) as well as in individualistic cultures would help validate and refine the cultural boundaries of the findings. Finally, further investigation is needed to clarify the conceptual and empirical distinction between organizational culture and KEE, thereby strengthening the construct’s theoretical foundation.
Cooperative managers should promote digital literacy, foster knowledge sharing and cultivate KEE to maximize performance outcomes, rather than relying solely on leadership interventions.
Emphasizing collectivist values and familial ties in organizational settings can strengthen collaboration, enhance knowledge flow and support sustainable development of cooperatives.
The study introduces KEE as a culturally grounded moderator, offering novel insights into how familial-like bonds in cooperatives enhance knowledge utilization and employee performance. It extends the knowledge-based view and leadership literature to a collectivist, kinship-driven organizational context.
