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Purpose

The purpose of this study is to investigate the association between knowledge sharing (KS) and innovative performance (IP) through the mediating effect of employee creativity (EC) in the manufacturing industries operating in Gujrat, Pakistan. KS among employees and its resultant IP is considered as a basic challenge faced by the manufacturing industries in Pakistan. The main motivation of the current study is to research this significant however neglected segment of the economy.

Design/methodology/approach

This quantitative study used deductive approach. Social exchange theory and resource-based view framework were used to predict relationships between EC, KS and IP. Data were collected through five-point Likert scale questionnaire from 158 managers including engineers and operational staff selected through convenient sampling. Regression analysis was performed using the Andrew Hayes Process macros in SPSS.

Findings

The results showed that there is a positive and significant effect of the KS on IP. Moreover, the mediation analysis showed that EC positively mediate the relationship between KS and IP.

Research limitations/implications

The study target population is limited the single city where most of industries are located. This can be extended to other industrial areas of the country to increase reliability of the results.

Practical implications

The study holds a significant contribution to the understanding of the link between KS and IP by emphasizing the role of stimulating EC in organizations.

Originality/value

It was identified in the literature that there is a lack of studies in this context as current conceptual model has not been studied before in the context of emerging economies at large and very few studies conducted in case of developed countries with totally different institutional setup. To put forward the study by Lee (2018), this is the first study that investigates the mediation of creativity between KS and IP in emerging markets manufacturing industry.

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