Abstract
Purpose This study aims to propose a model based on knowledge sharing (KS) to explore that how functional flexibility (FF) and psychological empowerment (PE) plays a mediating role between KS and innovative work behavior (IWB) among employees of small and medium enterprises (SMEs). Design/methodology/approach Cross-sectional plan was employed to investigate the hypothesized model. Survey instrument was used to collect data from 769 employees of SMEs through self-administered questionnaires. Furthermore, correlation and structural equation modeling approach was used for the analysis of collected data. Findings The findings revealed that KS has a significant positive relationship with IWB. Second, FF and PE fully mediate between KS and IWB. Originality/value This study offers empirical evidence how to flourish a mechanism of IWB among employees in SMEs. Furthermore, this study highlighted some facts that should be meaningful options for human resource managers to understand the nexus of KS, FF and PE for enhancing the IWB among workers in SMEs. Moreover, the study in hand provided significant implications for management by focusing on KS as a fundamental predictor for IWB via FF and PE.