Fostering Team Performance: Unraveling the Impact of High Performance Work System, Knowledge Sharing, and Absorptive Capacity in the IT Industry of Pakistan

Abstract

Effective team performance is a critical driver of success in the competitive landscape of the IT industry. This thesis investigates the factors influencing team performance in the IT industry of Pakistan, with a specific focus on the interplay between Ability, Motivation, and Opportunity Enhancing (AMO) practices, Knowledge Sharing (KS), Absorptive Capacity (AC), and their combined impact on Team Performance (TP). A deductive methodology was employed, and data were collected from 217 employees of IT companies through a web-based survey. The data underwent rigorous testing, including normality, reliability, and validity assessments. The findings revealed that AMO practices significantly influenced team performance. Ability Enhancing demonstrated a positive direct effect on team performance, while Motivation Enhancing had a full mediating effect through Absorptive Capacity. Opportunity Enhancing exhibited a full mediating effect through Knowledge Sharing, underscoring the importance of promoting a collaborative knowledge-sharing culture within teams. Moreover, Absorptive Capacity fully mediated the relationship between Motivation and Opportunity Enhancing with Team Performance, partially mediating the link between Ability Enhancing and Team Performance. The study also explored the parallel and sequential mediation effects of Knowledge Sharing and Absorptive Capacity on Team Performance. The results indicated that Knowledge Sharing and Absorptive Capacity play distinct roles in mediating the impact of AMO practices on team effectiveness. Furthermore, a combined model integrating all mediation paths demonstrated the collective impact of AMO, Knowledge Sharing, and Absorptive Capacity on Team Performance. This research contributes to the body of knowledge by unraveling the intricate relationships among AMO practices, Knowledge Sharing, Absorptive Capacity, and Team Performance in the context of the IT industry in Pakistan. The findings provide practical implications for organizations to optimize team performance by fostering knowledge-sharing behaviors, developing absorptive capacity, and strategically implementing AMO practices.