The Effect of Knowledge Absorptive Capacity and Relationship Quality on Knowledge Sharing by Small Business Owners

Document Type : Research Paper

Authors

1 Associate Professor, Department of Knowledge and Information Science, Payame Noor University, Tehran, Iran

2 Assistant professor, Department of Business Administration, Payame Noor University, Tehran, Iran

3 Department of Management, Payame Noor University, Iran.

Abstract

Purpose: The present study aims to examine the effect of absorptive capacity and relationship quality on knowledge sharing among small business owners.
Method: This study is an applied research project that employs a quantitative approach and a descriptive-survey design to examine small business owners’ perceptions regarding the influence of absorptive capacity and relationship quality on knowledge sharing. The statistical population comprises small business owners operating in Alborz Province of Iran in 2025. Sample size was determined using Cohen’s (1992) power analysis guidelines and G*Power software. Given that the questionnaire includes three main constructs and 21 items, a minimum sample size of 78 participants was estimated to achieve a statistical power of 80% at a 95% confidence level and an effect size of 0.15. To ensure robustness, 80 completed questionnaires were collected. The data collection instrument is a researcher-developed questionnaire, informed by a prior qualitative study conducted by the authors on the same topic. Data analysis was performed using partial least squares structural equation modeling (PLS-SEM) in SmartPLS software.  
Results: Based on the findings of the study’s structural model, absorptive capacity exhibits a statistically significant relationship with knowledge sharing. The effect size for this relationship is 0.289, indicating a strong association between the two constructs. Additionally, absorptive capacity demonstrates a significant and very strong relationship with the quality of relationships among small business owners, with an effect size of 0.788. Furthermore, the quality of relationships among small business owners is significantly associated with knowledge sharing, with an effect size of 0.233, reflecting a strong relationship. The coefficients of determination (R²) for the endogenous constructs are 0.786 for knowledge sharing and 0.736 for relationship quality among business owners, suggesting that the model explains 78.6% and 73.6% of the variance in these constructs, respectively.
Conclusions: The strong interrelationships observed among absorptive capacity, relationship quality, and knowledge sharing among small business owners suggest that Iran’s small business community, given its potential to significantly influence the national economy, warrants greater attention in fostering a culture of knowledge exchange, strengthening social infrastructure, and enhancing trade union support. As the first study of its kind conducted in Iran, these findings offer valuable insights for managers and policymakers engaged in the development and support of small enterprises.

Keywords


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