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Trust and tacit knowledge sharing and use J. Scott Holste and Dail Fields Abstract Purpose – This study aims to explore the impact of affect-based and cognition-based trust of co-workers on the willingness of professionals to share and use tacit knowledge. Design/methodology/approach – The relationships were examined through data provided by a sample of 202 professionals and managers in world headquarters of an international organization. Findings – The levels of both types of trust influence the extent to which staff members are willing to share and use tacit knowledge. Affect-based trust has a significantly greater effect on the willingness to share tacit knowledge, while cognition-based trust plays a greater role in willingness to use tacit knowledge. Research limitations/implications – The data are cross-sectional and were also collected in one organization. Future studies should consider longitudinal designs across multiple organizations. Alternatively, archival information could be used to measure actual tacit knowledge sharing and use among co-workers. Practical implications – The results indicate that both distinct types of trust are involved in decisions affecting transfer and use of tacit knowledge. This suggests that knowledge management efforts may need to include a finer grained view of the nature of the social networks impacting the knowledge transfer and management process. Originality/value – Previous studies have not examined the differential effects of both affect-based and cognition-based trust on employee willingness to share and use tacit knowledge. Keywords Trust, Knowledge management Paper type Research paper Introduction There is broad recognition that effective management of knowledge is essential to the success of modern firms. Organizational leaders have reacted to this need by spending nearly a trillion dollars annually to analyze, store, and retrieve knowledge (Lohr, 2002). However, investments in technology primarily affect an organization’s ability to accumulate and recall knowledge that has been made explicit through codification or writing in the form of documents, reports, ‘‘white papers’’, catalogues, presentations, patents, formulas, etc. Other knowledge in organizations is tacit in nature. This knowledge is highly personal and difficult – if not impossible – to reduce to writing. If expressed at all, it frequently takes the form of analogies, metaphors, stories, or personal strategies that reveal insight into the ‘‘how and why’’ underlying an employee’s approach to tasks or problems (Blackler, 1995; Blumentritt and Johnston, 1999; Choo, 1998, 2000; Collins, 1993; Narasimha, 2000; Nonaka and Takeuchi, 1995; Zack, 1999a, b). In some professional organizations, much of the most useful knowledge may be tacit in nature. Although critical to organizational decisions, tacit knowledge is difficult to measure and has been infrequently studied (Brockmann and Anthony, 1998). While technology may facilitate the storage of explicit knowledge, tacit knowledge resides only in the minds of people and its availability and use depends upon individual decisions and relationships (Cross and Baird, 2000; Fahey and Prusak, 1998; Hinds and Pfeffer, 2001; Lucas, 2005). PAGE 128 j JOURNAL OF KNOWLEDGE MANAGEMENT j VOL. 14 NO. 1 2010, pp. 128-140, Q Emerald Group Publishing Limited, ISSN 1367-3270 DOI 10.1108/13673271011015615 J. Scott Holste is Director, Global Research Department, Office of Overseas Operations, International Mission Board, Richmond, Virginia, USA. Dail Fields is a Professor in the School of Global Leadership and Entrepreneurship, Regent University, Virginia Beach, Virginia, USA. Received 15 September 2008 Revised 22 January 2009 Accepted 9 March 2009

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Page 1: Trust and Tacit Knowledge Sharing

Trust and tacit knowledge sharing and use

J. Scott Holste and Dail Fields

Abstract

Purpose – This study aims to explore the impact of affect-based and cognition-based trust ofco-workers on the willingness of professionals to share and use tacit knowledge.

Design/methodology/approach – The relationships were examined through data provided by a

sample of 202 professionals and managers in world headquarters of an international organization.

Findings – The levels of both types of trust influence the extent to which staff members are willing to share

and use tacit knowledge. Affect-based trust has a significantly greater effect on the willingness to sharetacit knowledge, while cognition-based trust plays a greater role in willingness to use tacit knowledge.

Research limitations/implications – The data are cross-sectional and were also collected in one

organization. Future studies should consider longitudinal designs across multiple organizations.

Alternatively, archival information could be used to measure actual tacit knowledge sharing and use

among co-workers.

Practical implications – The results indicate that both distinct types of trust are involved in decisionsaffecting transfer and use of tacit knowledge. This suggests that knowledge management efforts may

need to include a finer grained view of the nature of the social networks impacting the knowledge

transfer and management process.

Originality/value – Previous studies have not examined the differential effects of both affect-based and

cognition-based trust on employee willingness to share and use tacit knowledge.

Keywords Trust, Knowledge management

Paper type Research paper

Introduction

There is broad recognition that effective management of knowledge is essential to the

success of modern firms. Organizational leaders have reacted to this need by spending

nearly a trillion dollars annually to analyze, store, and retrieve knowledge (Lohr, 2002).

However, investments in technology primarily affect an organization’s ability to accumulate

and recall knowledge that has been made explicit through codification or writing in the form

of documents, reports, ‘‘white papers’’, catalogues, presentations, patents, formulas, etc.

Other knowledge in organizations is tacit in nature. This knowledge is highly personal and

difficult – if not impossible – to reduce to writing. If expressed at all, it frequently takes the

form of analogies, metaphors, stories, or personal strategies that reveal insight into the ‘‘how

and why’’ underlying an employee’s approach to tasks or problems (Blackler, 1995;

Blumentritt and Johnston, 1999; Choo, 1998, 2000; Collins, 1993; Narasimha, 2000; Nonaka

and Takeuchi, 1995; Zack, 1999a, b). In some professional organizations, much of the most

useful knowledge may be tacit in nature. Although critical to organizational decisions, tacit

knowledge is difficult to measure and has been infrequently studied (Brockmann and

Anthony, 1998). While technology may facilitate the storage of explicit knowledge, tacit

knowledge resides only in the minds of people and its availability and use depends upon

individual decisions and relationships (Cross and Baird, 2000; Fahey and Prusak, 1998;

Hinds and Pfeffer, 2001; Lucas, 2005).

PAGE 128 j JOURNAL OF KNOWLEDGE MANAGEMENT j VOL. 14 NO. 1 2010, pp. 128-140, Q Emerald Group Publishing Limited, ISSN 1367-3270 DOI 10.1108/13673271011015615

J. Scott Holste is Director,

Global Research

Department, Office of

Overseas Operations,

International Mission Board,

Richmond, Virginia, USA.

Dail Fields is a Professor in

the School of Global

Leadership and

Entrepreneurship, Regent

University, Virginia Beach,

Virginia, USA.

Received 15 September 2008Revised 22 January 2009Accepted 9 March 2009

Page 2: Trust and Tacit Knowledge Sharing

The willingness of organizational members to share and use tacit knowledge may depend on

the extent that co-workers are trusted recipients and sources (Adler, 2002; De Long and Fahey,

2000; Gruber, 2000; Locke, 1999; Lucas, 2005; McAllister, 1995; Nahapiet and Ghoshal, 1998;

Scott, 2000; Tsai and Ghoshal, 1998). For example, Lucas (2005) found that interpersonal trust

between co-workers and reputation of co-workers had separate effects on employee

experiences in transferring knowledge within an organization. In a related study, Smedlund

(2008) has suggested that tacit knowledge transfer (sharing and use) is facilitated by a social

network within organizations characterized by ties based both on interpersonal relationships

and long-standing working relationships where reciprocity among co-workers is the norm.

Some previous studies have found that trust has a multi-faceted nature (Dasgupta, 1988;

Dasgupta and Serageldin, 2000; Lane, 1998; Lewicki and Bunker, 1996; Lewis and Weigert,

1985; McAllister, 1995). McAllister (1995) developed and tested empirically the

distinctiveness of two forms of trust:

1. affect-based trust, which is grounded in mutual care and concern between workers; and

2. cognition-based trust, which is grounded in co-worker reliability and competence.

Previous studies have examined the effects of alternative types of trust on general

knowledge transfer (Lucas, 2005) and organizational citizenship behaviors (McAllister,

1995). However, none has examined the differential effects of both affect-based and

cognition-based trust on employee willingness to share and use tacit knowledge (Adler,

2002; Johannessen et al., 2001; De Long and Fahey, 2000; Gruber, 2000; Locke, 1999).

This study adds to the literature about and practical understanding of the knowledge

transfer process by exploring the effects of both affect-based and cognition-based trust on

the willingness of employees to share and use tacit knowledge. By identifying and clarifying

the relationships among the different types of trust and tacit knowledge sharing and use, this

study endeavors to provide organizational leaders with empirically based information that is

helpful in facilitating the transfer and exchange of tacit knowledge among professional

employees (Smedlund, 2008).

Theoretical development

Explicit and tacit knowledge

In their review, Raub and Ruling (2001) have noted that the bulk of knowledge management

literature is concerned primarily with the role of information technology. Cook and Brown

(1999) have voiced specific concerns about information technology’s preoccupation with

knowledge as an object to be possessed. Managers must also address the processes and

structures that encourage individuals and groups to share and use organizational

knowledge (Cross and Baird, 2000). Indeed, the preoccupation of organizations with

information technology for managing explicit knowledge may have led to neglect of the more

important and challenging task of facilitating the sharing and use of tacit forms of knowledge

(Johannessen et al., 2001).

Explicit knowledge is easily articulated or reduced to writing, is often impersonal and formal

in nature, and frequently takes the form of documents, reports, ‘‘white papers’’, catalogues,

presentations, patents, formulas, etc. (Nonaka, 1991, 1994; Nonaka and Konno, 1998;

Nonaka and Nishiguchi, 2001; Nonaka and Takeuchi, 1995; Nonaka and Teece, 2001; Zack,

1999b). In contrast, tacit knowledge (e.g. abilities, developed skills, experience,

undocumented processes, ‘‘gut-feelings’’, etc.) is highly personal and difficult to reduce

to writing. Tacit knowledge is rooted in an individual’s experience and values (Nonaka and

Konno, 1998). This type of knowledge may play an important role in the strategic planning

performance of managers and professional staff (Bennett, 1998; Blattberg and Hoch, 1990;

Brockmann and Anthony, 1998).

Table I describes some specific characteristics of both explicit and tacit knowledge.

VOL. 14 NO. 1 2010 j JOURNAL OF KNOWLEDGE MANAGEMENTj PAGE 129

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Tacit knowledge sharing and use

Face-to-face interaction often is the primary method for transferring tacit knowledge (Nonaka

and Takeuchi, 1995; Spender and Grant, 1996; Sweeney, 1996; Teece, 2000; Teece et al.,

1997). The levels of risk and uncertainty that are associated with tacit knowledge transfer are

reduced by trusting relationships (Foos et al., 2006). Some transfers of tacit knowledge are

formal, resulting from training events, or conferences, while others are more informal, resulting

from interdepartmental task forces, informal social networks and employee interactions

(Marquardt, 1996). Key to both formal and informal tacit knowledge transfer is the willingness

and capacity of individuals to share what they know and to use what they learn (Foos et al.,

2006; O’Dell et al., 1998; Szulanski, 1995, 1996). Barriers may arise that limit the transfer of

tacit knowledge (Lucas, 2005). These include coworker willingness to share and/or use tacit

knowledge, limited awareness of the tacit knowledge an individual possesses, difficulty in

expressing tacit knowledge that is tied to mental and/or physical action, and difficulty of

applying context-specific tacit knowledge in other contexts (Argote, 1999; Fahey and Prusak,

1998; Nidumolu et al., 2001; Nonaka and Takeuchi, 1995; Stenmark, 2000, 2002).

Sharing tacit knowledge may involve risks to an individual, such as loss of competitive

advantage over peers (Leonard and Sensiper, 1998; Stenmark, 2000, 2002). Likewise, use

of tacit knowledge may involve risks to an individual, such as a source providing incomplete

or having a questionable track record. In light of these risks, Nahapiet and Ghoshal (1998)

developed a theoretical model linking trust and knowledge exchange, suggesting that trust

may be a multidimensional construct that includes distinct cognitive and affect/relationship

based components. Affect-based trust is grounded in relationships where the parties have

Table I Descriptions and characteristics of explicit and tacit knowledge

Citation Explicit knowledge Tacit knowledge

Athanassiou and Nigh (2000) Transfer ‘‘depends on the credibility of thetransferer’’ and is ‘‘most effectively achievedthrough face-to-face interaction’’

Choo (2000) Products, patents, code, databases, technicaldrawings, tools, prototypes, audiovisuals,operating procedures

Learned through observation and imitation;shared through analogies, metaphors, andstories

Clarke and Rollo (2001) Codified, formal, systematic, reports, manuals,documents

Experimental, intuitive, communicated throughface-to-face collaboration

Davenport and Grover (2001) Easily codified Primarily transferred through direct interactionbetween individuals

Epstein (2000) Data, instructions, simple factual information,work progress, status

Big picture issues, companyinformation/rumors/gossip, needs, new ideas,insight, intuition, problems, concerns, issues

Haldin-Herrgard (2000) Handbooks, lectures, databases, textbooks,manuals, newsletters

Intuition, rule-of-thumb, gut feeling, personalskill

Meso and Smith (2000) Know-what, know-why, know-how, copyrights,patents, trademarks

Mental models, beliefs, persuasions, care-why

Scott (2000) Transferred through face-to-face interaction,observation, imitation, practice,shared-experiences based on trust

Smith (2001) Academic, know-what, print or electronic media,manuals, mathematical expressions, copyrights,patents

Practical, action-oriented, know-how, resemblesintuition, mental models, values, beliefs,perceptions, insights, assumptions. Exchangedthrough ‘‘knowledge fairs, learning communities,study missions, tours, advisory boards, jobrotation’’

Wong and Radcliffe (2000) Documents, blueprints, manuals, patents Rules-of-thumb, tricks of the trade, heuristics,estimation and envisioning capability, physicalmaneuvering, efficiency enhancing, imageformation and recognition, and handling ofhuman relationships

Zack (1999b) Mathematical formulas, training manuals,product literature, computer software

Shared through highly interactive conversation,storytelling, shared experience

PAGE 130 j JOURNAL OF KNOWLEDGE MANAGEMENTj VOL. 14 NO. 1 2010

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care and concern for each other, value the intrinsic virtue of such relationships, and believe

that these sentiments are reciprocated (McAllister, 1995; Pennings and Woiceshyn, 1987).

On the other hand, cognition-based trust is based on another person’s perceived

competence and reliability (McAllister, 1995).

Lucas (2005) found that both interpersonal trust and reputation of knowledge recipients and

sources explained variance in employee knowledge transfer. In this study, Lucas did not

distinguish between explicit and tacit knowledge, but the interpersonal trust measure used

is similar in nature to affect-based trust, while reputation is akin to cognition-based trust. The

empirical research of McAllister (1995) demonstrated that affect-based and

cognition-based trust each are distinct forms of interpersonal trust and were both related

to extra-role organizational citizenship behaviors directed at other individuals in an

organization. Thus both affect-based trust and cognition- based trust may contribute to

explanation of employee willingness to share and use tacit knowledge.

H1. Both affect-based and cognition-based trust in a co-worker will have positive

relationships with the willingness to share and use tacit knowledge.

Previous studies have shown that as individuals grow closer in their personal relationship to

one another, they are increasingly motivated to act in ways that benefit the other (Brann and

Foddy, 1988; Epstein, 2000; Fukuyama, 1995; Messick et al., 1983; Nonaka and Takeuchi,

1995; Organ, 1990). Several studies have highlighted the importance of trust developed

through close personal relationships. For example, Hansen (1999) found that in new product

development projects, strong personal ties were necessary for the transfer of tacit knowledge

between work units. Epstein (2000) found that individuals who were friends were more likely to

exchange personal and complex knowledge through face-to-face communication. These

previous studies suggest that willingness to share tacit organizational knowledge with another

co-worker is likely to be heavily influenced by affect-based connections. People often learn

tacit knowledge through close observation and interaction with someone who already

possesses that knowledge, as an apprentice learns his trade from a master craftsman.

As Nonaka and Takeuchi (1995) found in their study of Japanese companies, personal

relationships developed in the context of organizational retreats often resulted in the sharing

of tacit knowledge. In a separate study, Epstein (2000) found that personal relationships had

the greatest impact on the sharing of tacit knowledge between individuals. Foos et al. (2006)

also found that interpersonal trust among project team members was a significant predictor

of tacit knowledge transfer. These previous findings highlight the importance of affect-based

trust and led to our second study hypothesis:

H2. Affect-based trust of a coworker will have a larger influence than cognition-based

trust on an employee’s willingness to share tacit knowledge.

A willingness to use tacit knowledge is likely based on an employee’s understanding of the

accuracy and validity of the knowledge (Auster and Choo, 1994; Choo, 1998; Szulanski,

1995, 1996). As Lucas (2005) points out, successful knowledge transfer depends on

individual willingness to change the way things are done and risk the possibility of failure.

Employees must perceive there are positive benefits from using tacit knowledge. Studies of

persuasion and influence suggest that an expert and trustworthy source is more likely to

influence a recipient (Perloff, 1993; Szulanski, 1995). Other studies suggest that limitations in

transfer of tacit knowledge may result from the lack of perceived reliability of the source or

recipient (Arrow, 1974). When a source of knowledge is not perceived as trustworthy, his/her

advice and knowledge may be more openly challenged and resisted (Szulanski, 1995).

Other studies have found that before tacit knowledge is used by other employees, the

source must have a solid reputation within the organization (Foos et al., 2006; Lucas, 2005).

These studies taken together suggest that employees must be relatively certain that tacit

knowledge sources will provide all the relevant information, will deliver what is expected, and

are perceived in the organization as possessing worthwhile knowledge. Thus, use of tacit

knowledge will depend more heavily on cognition-based trust.

VOL. 14 NO. 1 2010 j JOURNAL OF KNOWLEDGE MANAGEMENTj PAGE 131

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H3. Cognition-based trust of a coworker will have a larger influence than affect-based

trust on an employee’s willingness to use tacit knowledge.

Methods

Sample

The sample for this study consisted of managerial and professional staff in headquarters of an

international non-profit organization that supports the work of missionaries working around the

world. The organization’s managers and professional staff operate in functional areas common

to most organizations (e.g. strategic planning, research, accounting, human resources,

information technology, public relations, etc.). These employees regularly have needs to share

and use tacit knowledge in the course of performing their jobs. Of the 263 managers and

professional staff in the organization, 202 provided data for this study, a response rate of 76.81

percent. There were no significant difference between the members of the sample and the

total members of the sampling frame in age, gender, and average tenure. The sampling frame

and our sample both contained 70 percent professional staff and 30 percent managers.

Measures

Dependent variables. Lacking previously tested and validated measures for willingness to

share and use tacit knowledge, two four-item measures were developed based on the

literature. For each of these measures the survey asks the respondent to indicate his/her

agreement to a particular statement on a seven-point Likert scale (1 ¼ strongly disagree,

2 ¼ disagree, 3 ¼ slightly disagree, 4 ¼ neither agree nor disagree, 5 ¼ slightlyagree,

6 ¼ agree, 7 ¼ strongly agree) for each item. The items used and their sources are:

1. Willingness to share tacit organizational knowledge:

B If requested to do so, I would allow this individual to spend significant time observing

and collaborating with me in order for him/her to better understand and learn frommy

work (Choo, 2000; Clarke and Rollo, 2001; Davenport and Grover, 2001; Scott, 2000).

B I would willingly share with this person rules of thumb, tricks of the trade, and other

insights into the work of my office and that of the organization I have learned

(Haldin-Herrgard, 2000; Wong and Radcliffe, 2000).

B I would willingly share my new ideas with this individual (Epstein, 2000).

B I would willingly share with this individual the latest organizational rumors, if

significant (Epstein, 2000).

2. Willingness to use tacit organizational knowledge:

B If relevant to my work, I would welcome the opportunity to spend significant time

observing and collaborating with this individual in order for me to better understand

and learn from his/her work (Choo, 2000; Clarke and Rollo, 2001; Davenport and

Grover, 2001; Scott, 2000).

B If relevant to my work, I would welcome and use any rules of thumb, tricks of the

trade, and other insights he/she has learned (Haldin-Herrgard, 2000; Wong and

Radcliffe, 2000).

B I would eagerly receive and consider any new ideas this individual might have

(Epstein, 2000).

B I would tend to believe organizational rumors shared by this individual and would use

such knowledge as appropriate (Epstein, 2000).

Cronbach’s a for the scale measuring willingness to share tacit knowledge was 0.85, while

for the scale measuring willingness to use tacit knowledge it was 0.84.

Independent variables. Measures developed and tested by McAllister (1995) were used to

assess affect and cognition-based trust. Affect-based trust was measured using McAllister’s

five-item scale (a ¼ 0:93). Example items for affect-based trust include: ‘‘I can talk freely to

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this person about difficulties I am having at work and know that (s)he will want to listen’’ and

‘‘I would have to say that we have both made considerable emotional involvements in our

working relationship’’. Cognition-based trust is measured using McAllister’s (1995) six-item

survey (a ¼ 0:93). Example items include: ‘‘I can rely on this person not to make my job more

difficult through careless work’’ and ‘‘Most people, even those who aren’t close friends of this

individual, trust and respect him/her as a co-worker’’.

Control variables. Some studies (Strauss and Howe, 1993; Tulgan, 1995) have suggested that

younger workers are more individualistic and less trusting of others than older workers This

suggests that age might affect a worker’s willingness to share or use tacit knowledge. Carroll

(2002) found that same-sex friendships between women are more trusting than those between

men. Consequently, women may be more willing than men to share and use tacit knowledge

from colleagues. An employee’s tenure with an organization might reduce the tendency to use

tacit knowledge obtained from co-workers and increase the tendency to share such

knowledge. Thus, respondent age, gender and tenure were controlled in our analyses.

Procedure

The Senior Vice President of the organization sent a letter to all managers and professional

staff, informing them of the nature of the study and encouraging their participation. These

personnel were then contacted via e-mail and asked to complete an online survey. The

survey software assigns a unique ID to each addressee that ensures each respondent

completes only one survey. This also enabled us to follow up with non-respondents.

It is possible that the relationship of an individual’s trust of a coworker and the willingness to

share or use tacit knowledge with/from that person may differ depending on the nature of the

personal interactions between the two co-workers (Feldman and Lynch, 1988). For example,

the relationship between affect-based and cognition-based trust and the willingness to

share and use of tacit knowledge could be quite different for a co-worker with whom a

respondent has agreeable personal interactions than for one with whom personal

interactions are difficult. In an effort to obtain information about the role of affect-based

and cognition-based trust across a full range of coworker relationships, two responses to our

questionnaire were obtained from each respondent. One response was for co-workers with

whom the respondents works well and one for co-workers that the respondent does not work

with well. Previous studies have asked respondents to provide responses for a co-worker

with whom they work well and a co-worker with whom they do not work well and both types of

responses have been averaged in the study sample (McAllister, 1995; Tsui and Gutek,

1984). Following this approach, the two responses were averaged for analysis.

Results

In order to investigate the discriminant validity of our measures, confirmatory factor analyses

were used to compare the fit of a four factor model (willingness to share tacit knowledge,

willingness to use tacit knowledge, affect-based trust, cognition-based trust) with alternative

three-factor models (one combining the trust variables, the other combining the willingness to

share and use variables), a two-factor model, and a one-factor model. The model with four

distinct factors had the best fit with the data, suggesting that our dependent and independent

variables are empirically distinct. The results of this confirmatory analysis are shown in Table II.

To further evaluate the construct validity of our measures for willingness to share and use

tacit knowledge, follow-up data were collected from a sub-sample of 19 of the original

respondents. Respondents were asked to:

B rate their willingness to share and use tacit knowledge with a selected co-worker using

our measures;

B indicate the extent to which each had actually shared tacit with the co-worker; and

B indicate the extent to which each had actually used tacit knowledge provided by the

co-worker.

VOL. 14 NO. 1 2010 j JOURNAL OF KNOWLEDGE MANAGEMENTj PAGE 133

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The correlation between the willingness to share tacit knowledge and the extent to which

tacit knowledge was actually shared was 0.69 (p , 0:05). The correlation between

willingness to use tacit knowledge and the extent to which tacit knowledge was received and

used was 0.78 (p , 0:01).

The correlations among the study variables are shown in Table III.

The only correlations that exceed 0.50 in Table II are between two dependent variables

suggesting that multicollinearity of the independent variables is unlikely to bias parameter

estimates developed in the multivariate regression analysis (Pedhazur, 1973).

The study hypotheses were tested using hierarchical moderated multivariate regression.

These regression models are presented in Table IV.

In Table IV, the coefficients for both affect-based and cognition-based trust are positive and

significant in both the regression model predicting willingness to share tacit knowledge and

the model predicting willingness to use tacit knowledge. These results support H1. In the

model predicting willingness to share tacit knowledge, the coefficient for affect-based trust

is significantly larger than the coefficient for cognition-based trust (t ¼ 3:88, p , 0:01) in the

regression model predicting willingness to share tacit knowledge. This supports H2. In the

regression model predicting willingness to use tacit knowledge the coefficient for

cognition-based trust is significantly larger than the coefficient for affect-based trust

(t ¼ 1:78, p , 0:05, one-tailed test). This result supports H3.

Discussion

This study focused on exploring the relationship between both affect-based and

cognition-based trust and the willingness of professionals to share and use tacit

knowledge within an organization. Our multivariate regression analyses show that both

affect-based and cognition-based trust are positively related to a worker’s willingness to

share and use tacit knowledge. Affect-based trust has a greater influence on willingness to

Table II Results of confirmatory factor analysis of the independent and dependent variables

Alternative models x 2 (df) Dx 2 (df) RMSEAa GFIb NFIc CFId

Four constructse 241.84 (146)** – 0.06 0.95 0.90 0.95Three constructs (combining affect-based trustand cognition-based trust) 278.38 (149)** 36.56 (3)** 0.07 0.94 0.87 0.93Three constructs (combining willingness to shareand willingness to use tacit knowledge) 289.14 (149)** 47.32 (3)** 0.07 0.94 0.87 0.93Two constructs (combined trust measures andcombined willingness measures) 309.95 (151)** 68.11 (5)** 0.07 0.93 0.86 0.92One construct 369.92 (152)** 128.08 (6)** 0.08 0.92 0.83 0.89

Notes: aRoot mean squared error of approximation; bgoodness of fit index; cnormed fit index; dcomparative fit index; eaffect-based trust,cognitive-based trust, willingness to share tacit knowledge, willingness to use tacit knowledge

Table III Means, standard deviations, and correlations among study variables (n ¼ 202)

Variables Mean SD 1 2 3 4 5 6 7

1. Willingness to share tacit knowledge 5.30 0.732. Willingness to use tacit knowledge 5.37 0.73 0.75 –3. Affect-based trust 4.43 0.65 0.49 0.39 –4. Cognition-based trust 5.11 0.69 0.34 0.46 0.40 –5. Gendera 1.40 0.49 0.02 0.07 0.01 20.05 –6. Age 45.6 9.52 0.06 0.06 0.07 0.08 0.06 –7. Tenure 13.7 8.89 20.06 20.07 20.02 20.01 0.16 0.57 –

Notes:Correlations larger than 0.14 are significant at p , 0:05; correlations larger than 0.18 are significant at p , 0:01. aCoded 1 ¼ maleand 2 ¼ female

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share tacit knowledge, while cognition-based trust has a larger influence on willingness to

use tacit knowledge.

Taken together, these results suggest that both warm personal relationships most likely

developed through face-to face interactions and solid respect for another worker’s professional

capability is required for the sharing of tacit knowledge. Affect-based and cognition-based

trust together accounted for approximately 25 percent of the variance in willingness to share

tacit knowledge As O’Neill and Adya (2007) have pointed out, professionals may tend to view

themselves as relatively autonomous, with as much or more commitment to their occupation as

to their organization. The store of tacit knowledge these workers have accumulated may be

considered a valuable asset that will be shared primarily with others with whom a good

personal relationship exists and whose reputation for solid professional performance is

established. The need for both types of trust seems to be important, suggesting that a good

personal relationship alone may not predict tacit knowledge exchange. Willingness to share

tacit knowledge also requires some confidence that the knowledge will be appropriately and

professionally used. However, the quality of the personal relationship with a co-worker has the

most significant effect on willingness to share tacit knowledge, suggesting that unless

affect-based trust of another co-worker is present, little tacit knowledge sharing may occur

regardless of how competent the possible recipient may be.

Both affect-based and cognition-based trusts are also needed for a professional employee to

be willing to use tacit knowledge. The perceived competence and professionalism of the

source of the tacit knowledge is a more critical determinant of willingness to use such

knowledge. The use of tacit knowledge may present a somewhat larger risk to a professional

employee than the act of sharing such knowledge. If a worker chooses to use and apply tacit

knowledge provided by another, and the results are not as positive as expected, the recipient

may need to present a responsible explanation to organizational management. Thus, the

recipient of tacit knowledge must be confident about the consensus concerning the

professional competence of the knowledge source. An employee may make decisions about

his/her personal liking for a co-worker in relative isolation because it is not considered important

for others to approve of one’s friends. However, judgments about a peer’s professional

competence and contribution to the organization may require consensus views to be

considered valid. While cognition-based trust has substantial influence on the willingness to

use tacit knowledge, affect-based trust alsomust be present. A critical requirement for effective

use of tacit knowledge is receipt of complete information, a process that is likely facilitated by a

positive personal relationship with and trust of the source of the tacit knowledge.

Practical implications

The effective management of tacit knowledge – the unwritten memory of the firm – is

essential to the success of modern firms. Tacit knowledge is not readily captured or stored

by information technology systems. Increasing investment in information technology will not

translate into better transfer and use or tacit knowledge because individuals decide whether

they will share tacit knowledge and individuals decide whether they will use tacit knowledge.

Table IV Regression models predicting tacit knowledge sharing and use (n ¼ 202)

Tacit knowledge sharing Tacit knowledge useVariables b (SE) b b (SE) b

Gender 0.05 (0.10) 0.03 0.15 (0.09) 0.10Age 0.01 (0.01) 0.06 0.01 (0.01) 0.07Tenure 20.01 (0.01) 20.09 20.01 (0.01) 20.12DR 2 0.02 0.03Cognition-based trust 0.19 (0.08)* 0.17* 0.39 (0.07)** 0.37**Affect-based trust 0.50 (0.08)** 0.41** 0.26 (0.08)** 0.23**DR 2 0.25** 0.25**Total R 2 0.27** 0.28**

Notes: *p , 0:05; **p , 0:01

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Our results suggest that tacit knowledge sharing and use depends on the formation of both

affect-based and cognition-based trust among co-workers. This suggests that any

diagnosis of organizational knowledge exchange processes should carefully consider the

types and levels of trust between employees. If sharing and use of tacit information is

important within an organization, leaders may be well served to make investments that help

develop these types of trust among coworkers. Both types of trust may be increased through

frequent direct engagement of co-workers in collaborative processes – especially situations

that illustrate interdependency and provide opportunity for workers to demonstrate

individual competency (Dietz, 2004; McAllister, 1995). For example, co-worker affect-based

and cognition-based trust might be fostered by collaborative experiences involving

interdependent projects similar to those presented to competitors on the popular television

show ‘‘The Apprentice’’ – without the fear of hearing ‘‘You’re fired’’.

The results also suggest that it may be important to understand the source of the levels of

affect-based trust. That is, if workers tend to make judgments about co-workers based

primarily on social categorization using surface attributes, increased frequency of interaction

among these co-workers may positively alter trust levels. In some cases, a co-worker who

appears different may turn out to be more similar in underlying values, attitudes, and

competencies. However, if a co-worker is not trusted because of demonstrated differences in

competence or values, increased interaction may further decrease both affect-based and

cognition-based trust. McAlister (1995) also found that higher levels of affiliative behavior

(taking a personal interest, passing on information, helping another with tasks) increased

affect-based trust among professional peers. Managerial actions and practices that

encourage and perhaps measure these types of collaborative behaviors may be worthwhile

investments that lead to greater levels of sharing and use of tacit knowledge within

organizations. However, McAllister’s (1995) data also suggested that cognitive-based trust

significantly affected the level of affect-based trust among peers. Thus managers may be

advised to focus on identifying and remedying job performance weaknesses of professional

staff. Heading off such weaknesses through training, on-the-job instruction, and development

experiences seems likely to pay off in greater levels of trust among co-workers and more

extensive sharing and use of tacit knowledge.

Limitations of the study and suggestions for future research

While our results are framed in terms of the influences of cognition and affect-based trust on

the willingness to share tacit knowledge with co-workers, it is also possible that causal

direction runs in the opposite direction. That is, our data are cross-sectional. So it possible

that the affect-based and cognition-based trust measured in this study had developed

because tacit knowledge had been shared and/or used by co-workers. Although empirical

evidence (confirmatory analysis and the Harmon one-factor test) suggests that the

relationships among the variables are unlikely to be primarily the result of common method,

and that the constructs are distinct, confidence in the relationship among the constructs will

be further enhanced by future studies that make use of multiple methods to obtain data.

Future studies should consider longitudinal designs that will make it possible to understand

better the causal ordering among alternative trust types and willingness to share and use

tacit knowledge. Alternately, archival information could be used in future efforts to measure

actual knowledge receipt and use among co-workers.

This study is also limited in that it surveyed management and professional staff in only one

organization. Future research should explore the relationships among affect-based and

cognition-based trust and tacit knowledge transfer in other organizational contexts to better

understand possible effects of cultural norms within organizations. It is possible that

professionals working in other types of organizations, especially for-profit companies, might

weight affect- and cognition-based trust differently in making decisions to share and use

tacit knowledge. Similarly, professionals working in task environments with different degrees

of interdependence (e.g. military, security, etc.) might place emphasis on different aspects

of trust.

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Page 10: Trust and Tacit Knowledge Sharing

It should also be recognized that professionals providing data for this study worked in an

international headquarters where some critical trust-building interactions occurred in

face-to-face meetings. Workers in regional of branch offices may have to rely more on

virtual communication and thus may place different emphasis on each form of trust in

determining their willingness to share and use tacit knowledge. Finally, although ethnicity was

not measured within our sample, observation by the researchers suggested more members

were native to the USA. In a group comprised of different cultural groups affect and

cognition-based trust may play different roles in determining cross-cultural willingness to

share and use tacit knowledge. Future studies should examine the relationship of affect-based

and cognition-based trust on organizations of different size where opportunities for personal

interaction differ. Future research could also explore how the impetus for a specific knowledge

exchange opportunity affects a person’s willingness to engage in such exchange. For

example, an individual may be willing to respond to a request from another for knowledge of

how a task should be done. Yet, that same individual might be less willing to take the initiative

to share the knowledge independent of such a request. Such reticence may be problematic in

that employees may not know who in the organization has the knowledge they need.

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Corresponding author

Dail Fields can be contacted at: [email protected]

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