Competitive Capabilities Mediating Knowledge Sharing And Financial Performance In Malaysian Manufacturing
Abstract
This research aims at analyzing the mediator effect of competitive capabilities on the link between knowledge sharing and financial performance within the sample of Malaysian manufacturing companies. The manufacturing industry in Malaysia experienced decreasing financial performance, which were believed that the companies are still apply conventional manufacturing practices that resulted in high production cost, weak competitiveness, and low innovation. There are six dimensions of competitive capabilities were examined in this study, which are quality, cost, delivery, flexibility, innovation and environment. The study collected data from 145 manufacturing companies in Malaysia. Disproportionate stratified random sampling and purposive sampling were used to select the samples and distribute questionnaires in the study. The data collected was analyzed by researchers with the use of PLS-SEM. In this context, tacit and explicit knowledge sharing have been found to be positively related to financial performance. On the other hand, tacit knowledge sharing has no impact on quality and flexibility although there is a positive correlation with competitive capabilities. Interestingly, whilst in relation to financial performance the constructs delivery, flexibility, innovation and environment were not relevant to financial performance. For the mediation hypotheses, nine out of 12 hypotheses have the mediation effects. The overall findings and implications are believed to help Malaysian manufacturers migrate from traditional systems to competitive capabilities and knowledge sharing practices for improving their financial gains and achieving sustainable competitive advantages. This study provides empirical evidence and practical guidelines for improving the financial performance of manufacturing companies in Malaysia.
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Publication Date
01 September 2026
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European Publisher
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1st Edition
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1-1
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Accounting and Finance, Business and Management, Communication, Law and Governance
Cite this article as:
Hong Loong, A., Sondoh Jr.*, S. L., Sidin, J. P., Lada, S., Karunia, E., & Haibo, L. (2026). Competitive Capabilities Mediating Knowledge Sharing And Financial Performance In Malaysian Manufacturing. In Y. Naoyuki, A. Peng Hwa, & J. Matthes (Eds.), GLY-Upcoming Volume: Innovating Together: The Convergence of Management, Communication, and The Digital Transformation, vol -. European Proceedings of Social and Behavioural Sciences (pp. 0-0). European Publisher. https://doi.org/10.15405/epsbs.2026.09.54