Knowledge is the most essentialelement in innovation.  The mostimportant goal of knowledge management is increasing innovation. Knowledgemanagement is fundamentally made of four major processes that is known as 1) knowledgediscovery 2) knowledge capture, 3) knowledge sharing 4) knowledge application.

Themajor process of knowledge management is Knowledge sharing that is defined as aprocess where individuals transfer knowledge which is include of explicit andtacit knowledge with each other in order to generate a new knowledge. However,Innovation Capabilities is the firm’s ability to create new ideas fordevelopment of their product and Service to achieve better organizationalperformance and sustain competitive advantages. Firm innovation capabilityinclude of employee innovation capability and team innovation capability. Therefore,this Study will aim to empirically examine and improve the understanding of theinfluence of knowledge sharing on employee innovation capability.

 The data for this study will becollect via the questionnaire from employees of organizations in developed anddeveloping countries, include (Germany, Iran, Malaysia, Iraq) with a Minimum of50 employees. The data will empirically tested using the multiple regressionanalysis with the help of SPSS software version 21.   There are some existing studies (ZhiningWang et al, 2012; Hsiu-Fen Lin, 2007; Shu hsien Liao et al, 2007)that examined knowledge sharing and innovation .Studies conducted by Hsiu-FenLin (2007) explored the influence of individual factors, organizational factors,and technology factors on knowledge sharing processes and whether more leads tosuperior firm innovation capability. The research was conducted between 172employees at 50 organizations in Taiwan. The results indicate that twoindividual factors and one organizational factors have a Significant influenceon knowledge-sharing processes. The results also shows that willingness ofemployees to both donate and collect knowledge, empower the organization to developinnovation capability.

Zhining Wang et al., (2012) examines thequantitative relationship between knowledge sharing, Innovation and performanceby using data collection from 89 high technology organizations in China. Thefindings of their study show that both explicit and tacit knowledge sharing practicesfacilitate innovation and performance.

 Shuhsien Liao et al., (2007) explored the relationships between knowledgesharing, absorptive capacity, and innovation capability in Taiwan’s firms. Datagathered from 170 firms in Taiwan. This study finds that absorptive capacity isthe intervening factor between knowledge sharing and innovation capability.  Based on the review of the existingliterature on knowledge sharing and employee innovation research area, it wasfound that nearly most studies used the knowledge sharing and firm innovation.

Thereis not studies which examine the influence of knowledge sharing on employeeinnovation in a comparative area. Previous studies did not express that fordeveloping the organization through sharing a knowledge, employee innovation isthe first and main point before it summarizes to the firms innovation capabilities.. For this reason, this study contributes to fill the gap existing in theliterature and will attempt to study influence of knowledge sharing on firminnovation in developing and developed country. Examining knowledge sharing willhelp to explain how knowledge sharing will enhance or discourage theirparticipation in firm innovation.


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