Ms. Jia Song

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Relationships between Employee Turnover, Knowledge Creation and Firm Performance in China

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0 RELATIONSHIPS BETWEEN EMPLOYEE TURNOVER, KNOWLEDGE CREATION AND FIRM PERFORMANCE IN CHINA Jia Song Naoya Ito Hokkaido University Japan

Relationships Between Employee Turnover, Knowledge Creation and Firm Performance in China:

1. Graduate School of International Media, Communication, and Tourism Studies, Hokkaido University 2. Research Faculty of Media and Communication, Hokkaido University Jia Song 1 , Naoya Ito 2 May 26, 2016 Relationships Between Employee Turnover, Knowledge Creation and Firm Performance in China

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2 Negative Positive (The calculation of turnover rate: (a/b)×100% Where: a = number of employees who left during the year b = number of all the employees of the year 1 Knowledge Loss (Yang et al., 2014) 2 Negative to the performance (Shaw et al., 2014) 3 Increasing the cost of labor (Wen et al., 2014) 4 Business prevention 5 Generating passive emotion (X Jin et al., 2015) The Effect of Employee Turnover

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3 Socialization Externalization         TACIT KNOWLEDGE EXPLICIT KNOWLEDGE     g i i i i i i o g g g g Combination Internalization o g i TACIT KNOWLEDGE TACIT KNOWLEDGE EXPLICIT KNOWLEDGE EXPLICIT KNOWLEDGE i: individual g: group o: organization   TACIT KNOWLEDGE EXPLICIT KNOWLEDGE   i i The capability of a company as a whole to create new knowledge, disseminate it throughout the organization, and embody it in products, services, and systems. ( Nonaka & Takeuchi,1995 ) Knowledge Creation Theory Knowledge Creativity (Nonaka & Konno,1998)

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4 Employee turnover Firm performance Knowledge creation H1 (+) H4 H3 (+) H2 (+) Knowledge sharing H5 H6 Research Conceptual Framework and Hypotheses

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5 Dimension Item Employee Turnover(7) ( Yi ying , 2012 ) Ability to transfer Motivation to transfer Opportunity seeking Knowledge creation(14) (Yong-Hui Li, 2008) Socialization Externalization Combination Internalization Performance(5) (Choi & Lee, 2002). Successful Market share Growing faster Profitable Innovative Knowledge sharing(3) Value sharing Action sharing Custom sharing Research Measurement

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6 Items Percentage Gender male 62% female 38% Industry IT 28% automobile industry 20% Employees 0-500 46% >20000 15% 2016 Jan21 st ----27 th Sojump 6-point likert -style Managers Mainland China Sample and Data Collection

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7 Construct Number of Item Cronbach alpha Composite Reliability AVE Employee Turnover 7 0.912 0.914 0.608 SECI 14 0.808 0.902 0.698 Firm Performance 5 0.918 0.918 0.693 Knowledge Sharing 3 0.893 0.895 0.739   Mean Standard deviation ET SECI FP KS ET 4.3464 0.97184 1     . SECI 4.2489 0.81285 0.446** 1     F P 3.8961 1.10389 0.306** 0.436** 1   KS 4.1769 1.10740 0.436** 0.596** 0.493** 1 **. Correlation is significant at the 0.01 level (2-tailed). N = 179 Research Method

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8 Hypotheses Results H1(+) supported H2(+) supported H3(+) supported H4 supported H5 unsupported H6 unsupported ** ** P< 0.001 level (two-tailed). ** ET FP 0.33 ** Research Result

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9 Conclusions The new employee’s knowledge can benefit the company through the knowledge creation process. Each step of knowledge creation process has different effect on firm performance.

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10 Path Estimate Socialization Performance 0.54 Externalization Performance 0.67 Combination Performance 0.50 Internalization Performance 0.44 Socialization Externalization Internalization Combination Research Limitation and Future Research

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11 Reference Nonaka, I., & Takeuchi, H.,1995. The knowledge creating company. NewYork : Oxford University Press. Glebbeek , A. C., & Bax , E. H.,2004. Is high employee turnover really harmful? An empirical test using company records. Academy of Management Journal, 47(2), 277-286. Li, Y. H., Huang, J. W., & Tsai, M. T.,2009. Entrepreneurial orientation and firm performance: The role of knowledge creation process. Industrial marketing management, 38(4), 440-449. Choi, B., & Lee, H. ,2002. Knowledge management strategy and its link to knowledge creation process. Expert Systems with applications, 23(3), 173-187. Smith, K. G., Collins, C. J., & Clark, K. D.,2005. Existing knowledge, knowledge creation capability, and the rate of new product introduction in high-technology firms. Academy of management Journal, 48(2), 346-357. Lin, H. F., 2007. Knowledge sharing and firm innovation capability: an empirical study. International Journal of manpower, 28(3/4), 315-332.

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Thank you very much!

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