Cross Cultural Organisations and Knowledge Sharing Behaviour: A Study on the Banking Sector in Pakistan

Abstract

Multicultural workforce composition has become a defining feature of contemporary organisations, particularly in large service sectors where employees from diverse linguistic, ethnic, and regional backgrounds work closely within shared organisational structures. While such diversity offers opportunities for innovation and enriched perspectives, it also presents challenges for coordination and knowledge sharing, especially in contexts characterised by hierarchical supervision and knowledge-intensive work processes. This study examines knowledge sharing behaviour (KSB) within Pakistan’s banking sector, focusing on how ethical leadership (EL) and cultural diversity management (CDM) are associated with employees’ willingness to share knowledge, and how trust operates as a mediating mechanism in these relationships. Grounded in Social Exchange Theory and Organisational Support Theory, the study conceptualises knowledge sharing as a relational and reciprocal outcome shaped by leadership practices and organisational support signals within multicultural workplaces. The study is situated in Islamabad, Pakistan, a metropolitan and administratively significant setting marked by pronounced cultural diversity and a large concentration of banking institutions. Adopting a quantitative research design, the study draws on survey data collected through self-administered questionnaires administered online via Qualtrics to employees working in banks in Islamabad, Pakistan. The findings indicate that both EL and CDM are positively associated with KSB, while trust is also positively related and operates as a significant mediating mechanism linking EL and CDM. By integrating the study constructs within a single empirical framework, this research contributes to the organisational behaviour literature and offers insights relevant to global multicultural organisational environments. The study offers practical insights for banking organisations, managers, and policymakers by highlighting considerations relevant to supporting knowledge-sharing behaviour and sustained organisational effectiveness in culturally diverse workplaces.