Tacit knowledge management process, product innovation and organizational performance: exploring the role of affective trust and task efficiency

Purpose Nowadays, it is hard to retain a knowledge monopoly since tacit knowledge has become essential for innovation and organizational effectiveness (ORP). This study analyzed the role of product innovation as a mediator in the relationship between the tacit knowledge management process (TKMP) and organizational performance. In addition, two moderating variables were examined: (1) Affective trust (AFT) between the tacit knowledge management process and product innovation relationship and (2) Task efficiency in product innovation and organizational performance (ORP) relationship. Design/methodology/approach Around 344 questionnaires were collected from various Chinese regions between February and April 2023 to conduct this study. The regression, mediation and moderation analyses on lower and higher-order data were evaluated using the SmartPLS approach. Findings The results validate that product innovation mediates the connection between managing tacit knowledge and the organization’s performance. Affective trust also plays a positive moderating role between tacit knowledge and product innovation. These results provide valuable theoretical and practical insights, substantiating various direct, indirect, mediate, and moderated effects hypotheses. Research limitations/implications The scope of the study was restricted to manufacturing companies; however, further research may broaden the model’s scope to include other industries. Furthermore, future research should continue to explore the role of task efficiency in the innovation process and identify strategies for enhancing task efficiency in organizations. Practical implications The study establishes the significance of effectively managing tacit knowledge for fostering product innovation. Company managers and leaders can promote employee trust, enhancing innovation capabilities and overall organizational effectiveness. Originality/value This study, involving dual moderation, explores the connections between processes of managing tacit knowledge, product innovation and organizational performance. It addresses research gaps, enriching the understanding of managing tacit knowledge, leading to organizational innovation and performance improvements. The study also highlights how affective trust is vital in strengthening the connection between TKMP and product innovation.