The impact of incentive mechanisms on innovation performance in engineering project networks: the mediating role of knowledge sharing

Purpose This study aims to deeply investigate how incentive mechanisms affect innovation performance in engineering project networks, and to highlight the key mediating role that knowledge sharing plays in this influence process. Focusing on profit sharing and risk sharing as two specific incentive mechanisms, it analyzes the intrinsic pathways and mechanisms through which they enhance the overall innovation performance of project networks by promoting both explicit and tacit knowledge sharing. Design/methodology/approach A theoretical model was tested using partial least squares structural equation modeling (PLS-SEM) on survey data from 230 multi-stakeholder engineering projects in China. The validated questionnaire measures PS, RS, RC, EKS, TKS and IP. Bootstrapping analysis confirmed the reliability and validity of the data and examined the direct, mediating and moderating effects of the model. Findings Profit-sharing mechanism significantly enhance innovation performance exclusively through facilitating explicit knowledge sharing, while demonstrating no direct effect on tacit knowledge transfer. In contrast, risk-sharing mechanism directly improves innovation performance while promoting both explicit and tacit knowledge sharing. Relational capital plays a critical moderating role by strengthening the impact of both incentive types on tacit knowledge sharing, yet exhibits no significant moderating effect on explicit knowledge sharing. Notably, explicit knowledge sharing contributes more substantially to innovation performance than tacit knowledge sharing in engineering project networks, challenging conventional views on the primacy of tacit knowledge in innovation contexts. Originality/value Proposing the “Motivation-Relationship-Knowledge-Innovation” framework. It not only solves the theoretical gap of differentiated incentive paths and integration barriers, but also provides a practice paradigm for project network governance that takes into account both contract design and relationship cultivation.