Examining the influence of expatriates’ social capital and knowledge-sharing behavior on financial performance

Abstract

Purpose

The purpose of this paper is to examine the impact of expatriate’s social capital and knowledge sharing on multinational companies’ (MNCs) financial performance, with a specific focus on the influence of trust, commitment, organizational support and the four elements of balanced scorecard (BSC).

Design/methodology/approach

A quantitative questionnaire survey was conducted using expatriates of MNCs in Taiwan as the respondents.

Findings

Trust and organizational support are significant predictors of knowledge sharing and social capital, which further facilitate their influence on learning and growth, customer satisfaction, internal process improvement and financial performance of MNCs. Besides, social capital serves as an accelerate agent to promote the influence of trust on knowledge sharing, and customer satisfaction serves as a catalyst on the influence of learning and growth and internal process on a firms’ financial performance.

Practical implications

This study provides a clear articulation of the role of knowledge sharing on the financial performance and its moderation effect on the elements of BSC. Trust and organizational support are essential for knowledge sharing and expatriates’ social capital. The roles of social capital and knowledge sharing are critical for expatriates to be success in the overseas market places.

Originality/value

Since the evidences regarding expatriate performance rarely integrate the variables of social capital, knowledge sharing and BSC into a more comprehensive framework, the results of this study can be an important reference for academicians to do further validation. These results are also critical for practitioners to develop dispatching policies for the expatriates in the oversea market places.

Citation

Wu, W.Y., Lee, L.Y. and Pham, T.T. (2020), "Examining the influence of expatriates’ social capital and knowledge-sharing behavior on financial performance", International Journal of Organizational Analysis, Vol. 28 No. 3, pp. 557-577. https://doi.org/10.1108/IJOA-07-2019-1822