This paper constructs a measurement for knowledge creation capacity, in addition to probing into the effects of the knowledge creation capacity in relation to the organisation culture, conditions of knowledge sharing and knowledge sharing motivation. The research is based on the staff of two well managed state-run and three private factories which returned 316 out of 402 questionnaires done by purposive and stratified random sampling at different levels. According to the result analysed by hierarchical multiple regression, organisational culture is the key element influencing knowledge creation in an organisation. Developmental, cultural and rational culture will also have a positive effect on this capability. Knowledge–sharing time and HRM, as well as the motive also have a remarkable influence on it. Interestingly, achievement and relation sharing motivation produces a positive effect, while extrinsic motivation has a negative effect.
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International Journal of Manufacturing Technology and Management, 6(12), 25 - 42