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Signaling, spillover and learning effects of knowledge flows on division performance within related diversified firms

Manuel Villasalero (Department of Business Administration, University of Castilla-La Mancha, Ciudad Real, Spain)

Journal of Knowledge Management

ISSN: 1367-3270

Article publication date: 21 October 2013

864

Abstract

Purpose

This study aims to address the performance consequences of knowledge transfer within related diversified firms by distinguishing between knowledge outflows and knowledge inflows at the business division level.

Design/methodology/approach

Questionnaire data from a sample of 118 business divisions were analyzed using stepwise linear regression.

Findings

The results from a three-effect model for the analysis of knowledge transfer indicate that knowledge outflow improves division performance, while knowledge inflow damages it when absorptive capacity is weak. The overall effect of knowledge transfer is therefore beneficial with the exception of the cases of receiving divisions with low levels of absorptive capacity.

Practical implications

These results indicate that knowledge transfer contributes to overall corporate performance, since knowledge outflow impacts positively on division performance in all cases and knowledge inflow impacts negatively on division performance only in some cases. Setting aside the obvious task of promoting knowledge transfer within the firm, one important concern for corporate officers would be to prevent situations in which a division lacks the absorptive capacity to play its role within a corporate network.

Originality/value

This work contributes to existent literature by disentangling the effects of knowledge transfer according to different theoretical perspectives, and it provides an empirical examination in a setting which is intensive in knowledge transference, as is that of business divisions from related diversified firms.

Keywords

Acknowledgements

The author would like to thank the Editor and anonymous reviewers for their constructive and helpful comments on the paper. The author is grateful for the cooperation of the firms without which this study would not have been possible. Special thanks go to all the division managers who supported this study by filling in the questionnaires. The paper has benefited from constructive comments by Ignacio Canales and Francesco Schiavone. Received 14 March 2013 Revised 18 July 2013 Accepted 19 July 2013

Citation

Villasalero, M. (2013), "Signaling, spillover and learning effects of knowledge flows on division performance within related diversified firms", Journal of Knowledge Management, Vol. 17 No. 6, pp. 928-942. https://doi.org/10.1108/JKM-03-2013-0101

Publisher

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Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited

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