THE IMPACT OF KNOWLEDGE SHARING, MOTIVATION, SHARED LEADERSHIP ON PERFORMANCE IN SMALL AND MEDIUM ENTERPRISES IN GUANGZHOU, CHINA: THE MEDIATING ROLE OF INNOVATION
Chinese Small and Medium Enterprises (SMEs) are vital to the economy but face challenges in fostering innovation and improving employee performance. The traditional business culture prioritizes imitation over innovation. Cultural values, social norms, and budget constraints shape how SMEs operate. Many SMEs struggle to adopt innovative strategies, products, and processes to stay competitive This research proposal aims to address this gap by investigating the impact of shared leadership, knowledge sharing, and motivation on employee performance within Chinese SMEs. It recognizes that the dynamics operating in Chinese SMEs may differ from those in Western settings, necessitating a context-specific study. This study used a mixed-method research design, collecting data with both an interview and a cross-sectional survey design. The combination of interviews and surveys allows for both in-depth qualitative insights and quantitative data collection, fostering a more comprehensive understanding of the topic. The study was conducted among SMEs in Guangzhou, China. The data are analyzed to reveal the links between variables of interest. A mediated model is constructed. The findings show that knowledge sharing, motivation, and shared leadership positively affect performance in SMEs in China. Innovation acts as the mediator in knowledge sharing, motivation, shared leadership, and employee performance. Shared leadership and inclusive practices encourage employees to engage in decision-making, thus enhancing their commitment and motivation to bring innovative ideas to fruition. Reflecting innovation in the company's values and recognizing and rewarding innovative efforts further reinforces the message that innovation is not just supported but is a strategic imperative for the organization. The findings offer valuable insights into the challenges and limitations of current managerial practices, providing suggestions for enhancing the performance of SEMs in China.
Knowledge Sharing, Motivation, Shared Leadership, SMEs, Innovation.