Paradox of knowledge sharing and hiding in driving innovation capability: The intermediary of human capital within the resource-based view

Abstract

Purpose: This study investigates the knowledge paradox by examining the influence of knowledge sharing and knowledge hiding on innovation capability, with a specific focus on the mediating role of human capital through the lens of the Resource-Based View (RBV). It aims to resolve why knowledge hiding often yields inconsistent results in direct innovation tests.

Design/methodology/approach: A quantitative methodology approach was employed through the distribution of questionnaires to a saturated sample of 109 government service employees from the Special Region of Yogyakarta, Indonesia, and SmartPLS 4.1.1.4 was used as the testing tool.

Findings: The results reveal a significant dual mechanism. Knowledge sharing drives innovation through an accumulation mechanism, where human capital serves as a partial mediator. Conversely, knowledge hiding presents a paradox: it has no significant direct impact on innovation but acts as a latent inhibitor, degrading innovation solely by destroying human capital (full mediation). This confirms a depletion mechanism in which the damage caused by hiding behavior is structural rather than operational.

Research limitations/implications: The study is limited by its cross-sectional design and specific focus on the public sector. Future research should employ longitudinal methods to observe the long-term erosion of human capital and to explore moderating factors such as leadership styles.

Practical implications: Public sector managers must look beyond immediate innovation outputs and monitor human capital health (trust and competency growth) as early warning indicators of organizational toxicity. Cultivating psychological safety is essential to mitigate hiding behaviors and preserve the organization’s core intellectual assets.

Originality/value: This study offers a novel resolution to the knowledge-hiding paradox. By identifying human capital as a full mediator, it explains why hiding behavior may seem "harmless" in direct tests while systematically impairing the organization’s underlying resource base. It shifts the theoretical focus from immediate performance to long-term asset preservation in the context of bureaucratic innovation.