Interacting Effects of Tacit Knowledge and Learning Orientation in Improving Firm Performance

Organisational knowledge literature is limited in explaining tacit knowledge utilisation as contingent factors for enhancing performance from a human cognitive and learning perspective. Hence, the motivation of this study is to provide insights into the literature about the interacting effects of tacit knowledge and learning orientation in shaping learning and improving firm performance. This study investigated the relationships between tacit knowledge, learning orientation and performance. The descriptive research design was adopted, while 231 telecommunication experts in the leading telecommunication firm in Nigeria participated in the survey. Structural equation modelling (SEM) AMOS was used to analyse the data gathered. The statistical results indicated support for the direct influence of group-tacit knowledge on firm performance while suggesting that individual-tacit knowledge does not have a significant direct effect on performance. Meanwhile, there is an established statistical relationship between individual-tacit knowledge and two dimensions of learning orientation: open-mindedness and inter-organisational knowledge sharing. All the dimensions of group-tacit knowledge and learning orientation are statistically related. As a mediating variable, the statistical results show that learning orientation strengthens the relationship between organisational knowledge variables (individual-tacit knowledge and group-tacit knowledge) and firm performance. Therefore, the study recommends that managers essentially promote a culture of collectivism in knowledge sharing and learning to enhance organisational performance.