IDEAS home Printed from https://ideas.repec.org/a/inm/ororsc/v23y2012i6p1748-1766.html
   My bibliography  Save this article

How Knowledge Transfer Impacts Performance: A Multilevel Model of Benefits and Liabilities

Author

Listed:
  • Sheen S. Levine

    (Sloan School of Management, Massachusetts Institute of Technology, Cambridge, Massachusetts 02142; and Institute for Social and Economic Research and Policy, Columbia University, New York, New York 10027)

  • Michael J. Prietula

    (Goizueta Business School and Center for NeuroPolicy, Emory University, Atlanta, Georgia 30322)

Abstract

When does knowledge transfer benefit performance? Combining field data from a global consulting firm with an agent-based model, we examine how efforts to supplement one's knowledge from coworkers interact with individual, organizational, and environmental characteristics to impact organizational performance. We find that once cost and interpersonal exchange are included in the analysis, the impact of knowledge transfer is highly contingent. Depending on specific characteristics and circumstances, knowledge transfer can better, matter little to, or even harm performance. Three illustrative studies clarify puzzling past results and offer specific boundary conditions: (1) At the individual level, better organizational support for employee learning diminishes the benefit of knowledge transfer for organizational performance. (2) At the organization level, broader access to organizational memory makes global knowledge transfer less beneficial to performance. (3) When the organizational environment becomes more turbulent, the organizational performance benefits of knowledge transfer decrease. The findings imply that organizations may forgo investments in both organizational memory and knowledge exchange, that wide-ranging knowledge exchange may be unimportant or even harmful for performance, and that organizations operating in turbulent environments may find that investment in knowledge exchange undermines performance rather than enhances it. At a time when practitioners are urged to make investments in facilitating knowledge transfer and collaboration, appreciation of the complex relationship between knowledge transfer and performance will help in reaping benefits while avoiding liabilities.

Suggested Citation

  • Sheen S. Levine & Michael J. Prietula, 2012. "How Knowledge Transfer Impacts Performance: A Multilevel Model of Benefits and Liabilities," Organization Science, INFORMS, vol. 23(6), pages 1748-1766, December.
  • Handle: RePEc:inm:ororsc:v:23:y:2012:i:6:p:1748-1766
    DOI: 10.1287/orsc.1110.0697
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/orsc.1110.0697
    Download Restriction: no

    File URL: https://libkey.io/10.1287/orsc.1110.0697?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mary Tripsas & Giovanni Gavetti, 2000. "Capabilities, cognition, and inertia: evidence from digital imaging," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1147-1161, October.
    2. Giovanni Gavetti & Daniel A. Levinthal & Jan W. Rivkin, 2005. "Strategy making in novel and complex worlds: the power of analogy," Strategic Management Journal, Wiley Blackwell, vol. 26(8), pages 691-712, August.
    3. Zhiang (John) Lin & Xia Zhao & Kiran M. Ismail & Kathleen M. Carley, 2006. "Organizational Design and Restructuring in Response to Crises: Lessons from Computational Modeling and Real-World Cases," Organization Science, INFORMS, vol. 17(5), pages 598-618, October.
    4. Eric D. Darr & Linda Argote & Dennis Epple, 1995. "The Acquisition, Transfer, and Depreciation of Knowledge in Service Organizations: Productivity in Franchises," Management Science, INFORMS, vol. 41(11), pages 1750-1762, November.
    5. Morten T. Hansen, 2002. "Knowledge Networks: Explaining Effective Knowledge Sharing in Multiunit Companies," Organization Science, INFORMS, vol. 13(3), pages 232-248, June.
    6. Ray Reagans & Linda Argote & Daria Brooks, 2005. "Individual Experience and Experience Working Together: Predicting Learning Rates from Knowing Who Knows What and Knowing How to Work Together," Management Science, INFORMS, vol. 51(6), pages 869-881, June.
    7. Linda Argote & Bill McEvily & Ray Reagans, 2003. "Managing Knowledge in Organizations: An Integrative Framework and Review of Emerging Themes," Management Science, INFORMS, vol. 49(4), pages 571-582, April.
    8. J. Stuart Bunderson & Ray E. Reagans, 2011. "Power, Status, and Learning in Organizations," Organization Science, INFORMS, vol. 22(5), pages 1182-1194, October.
    9. Stephen P. Borgatti & Rob Cross, 2003. "A Relational View of Information Seeking and Learning in Social Networks," Management Science, INFORMS, vol. 49(4), pages 432-445, April.
    10. Hirschman, Albert O, 1982. "Rival Interpretations of Market Society: Civilizing, Destructive, or Feeble?," Journal of Economic Literature, American Economic Association, vol. 20(4), pages 1463-1484, December.
    11. Martine R. Haas & Morten T. Hansen, 2005. "When using knowledge can hurt performance: the value of organizational capabilities in a management consulting company," Strategic Management Journal, Wiley Blackwell, vol. 26(1), pages 1-24, January.
    12. Arturs Kalnins & Kyle J. Mayer, 2004. "Franchising, Ownership, and Experience: A Study of Pizza Restaurant Survival," Management Science, INFORMS, vol. 50(12), pages 1716-1728, December.
    13. Burton, Richard M. & Obel, Borge, 1988. "Opportunism, incentives, and the m-form hypothesis : A laboratory study," Journal of Economic Behavior & Organization, Elsevier, vol. 10(1), pages 99-119, July.
    14. Jamal Shamsie & Xavier Martin & Danny Miller, 2009. "In with the old, in with the new: capabilities, strategies, and performance among the Hollywood studios," Strategic Management Journal, Wiley Blackwell, vol. 30(13), pages 1440-1452, December.
    15. Martine R. Haas & Morten T. Hansen, 2007. "Different knowledge, different benefits: toward a productivity perspective on knowledge sharing in organizations," Strategic Management Journal, Wiley Blackwell, vol. 28(11), pages 1133-1153, November.
    16. John D. Sterman & Nelson P. Repenning & Fred Kofman, 1997. "Unanticipated Side Effects of Successful Quality Programs: Exploring a Paradox of Organizational Improvement," Management Science, INFORMS, vol. 43(4), pages 503-521, April.
    17. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    18. David J. Teece, 2008. "Technology Transfer By Multinational Firms: The Resource Cost Of Transferring Technological Know-How," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 1, pages 1-22, World Scientific Publishing Co. Pte. Ltd..
    19. Sumantra Ghoshal & Harry Korine & Gabriel Szulanski, 1994. "Interunit Communication in Multinational Corporations," Management Science, INFORMS, vol. 40(1), pages 96-110, January.
    20. James G. March & Lee S. Sproull & Michal Tamuz, 1991. "Learning from Samples of One or Fewer," Organization Science, INFORMS, vol. 2(1), pages 1-13, February.
    21. Rob Cross & Lee Sproull, 2004. "More Than an Answer: Information Relationships for Actionable Knowledge," Organization Science, INFORMS, vol. 15(4), pages 446-462, August.
    22. Szulanski, Gabriel, 2000. "The Process of Knowledge Transfer: A Diachronic Analysis of Stickiness," Organizational Behavior and Human Decision Processes, Elsevier, vol. 82(1), pages 9-27, May.
    23. Kyle Lewis, 2004. "Knowledge and Performance in Knowledge-Worker Teams: A Longitudinal Study of Transactive Memory Systems," Management Science, INFORMS, vol. 50(11), pages 1519-1533, November.
    24. Kathleen M. Carley, 2009. "Computational modeling for reasoning about the social behavior of humans," Computational and Mathematical Organization Theory, Springer, vol. 15(1), pages 47-59, March.
    25. Kyle Lewis & Donald Lange & Lynette Gillis, 2005. "Transactive Memory Systems, Learning, and Learning Transfer," Organization Science, INFORMS, vol. 16(6), pages 581-598, December.
    26. Laura B. Cardinal & Scott F. Turner & Michael J. Fern & Richard M. Burton, 2011. "Organizing for Product Development Across Technological Environments: Performance Trade-offs and Priorities," Organization Science, INFORMS, vol. 22(4), pages 1000-1025, August.
    27. Mary Tripsas, 1997. "Unraveling The Process Of Creative Destruction: Complementary Assets And Incumbent Survival In The Typesetter Industry," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 119-142, July.
    28. Arrow, Kenneth J, 1969. "Classificatory Notes on the Production and Transmission of Technological Knowledge," American Economic Review, American Economic Association, vol. 59(2), pages 29-35, May.
    29. Sheen S. Levine & Robert Kurzban, 2006. "Explaining clustering in social networks: towards an evolutionary theory of cascading benefits," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(2-3), pages 173-187.
    30. Herbert A. Simon, 1991. "Bounded Rationality and Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 125-134, February.
    31. Dennis Epple & Linda Argote & Kenneth Murphy, 1996. "An Empirical Investigation of the Microstructure of Knowledge Acquisition and Transfer Through Learning by Doing," Operations Research, INFORMS, vol. 44(1), pages 77-86, February.
    32. Janet Fulk & Rebecca Heino & Andrew J. Flanagin & Peter R. Monge & François Bar, 2004. "A Test of the Individual Action Model for Organizational Information Commons," Organization Science, INFORMS, vol. 15(5), pages 569-585, October.
    33. Michael J. Lenox & Scott F. Rockart & Arie Y. Lewin, 2010. "Does interdependency affect firm and industry profitability? an empirical test," Strategic Management Journal, Wiley Blackwell, vol. 31(2), pages 121-139, February.
    34. Richard M. Burton & Børge Obel, 2011. "Computational Modeling for What-Is, What-Might-Be, and What-Should-Be Studies---And Triangulation," Organization Science, INFORMS, vol. 22(5), pages 1195-1202, October.
    35. Beth A. Bechky, 2003. "Sharing Meaning Across Occupational Communities: The Transformation of Understanding on a Production Floor," Organization Science, INFORMS, vol. 14(3), pages 312-330, June.
    36. David Constant & Lee Sproull & Sara Kiesler, 1996. "The Kindness of Strangers: The Usefulness of Electronic Weak Ties for Technical Advice," Organization Science, INFORMS, vol. 7(2), pages 119-135, April.
    37. Raymond E. Levitt & Jan Thomsen & Tore R. Christiansen & John C. Kunz & Yan Jin & Clifford Nass, 1999. "Simulating Project Work Processes and Organizations: Toward a Micro-Contingency Theory of Organizational Design," Management Science, INFORMS, vol. 45(11), pages 1479-1495, November.
    38. Argote, Linda & Ingram, Paul & Levine, John M. & Moreland, Richard L., 2000. "Knowledge Transfer in Organizations: Learning from the Experience of Others," Organizational Behavior and Human Decision Processes, Elsevier, vol. 82(1), pages 1-8, May.
    39. Arturs Kalnins & Wilbur Chung, 2006. "Social Capital, Geography, and Survival: Gujarati Immigrant Entrepreneurs in the U.S. Lodging Industry," Management Science, INFORMS, vol. 52(2), pages 233-247, February.
    40. Daniel Z. Levin & Rob Cross, 2004. "The Strength of Weak Ties You Can Trust: The Mediating Role of Trust in Effective Knowledge Transfer," Management Science, INFORMS, vol. 50(11), pages 1477-1490, November.
    41. Lewis, Kyle & Belliveau, Maura & Herndon, Benjamin & Keller, Joshua, 2007. "Group cognition, membership change, and performance: Investigating the benefits and detriments of collective knowledge," Organizational Behavior and Human Decision Processes, Elsevier, vol. 103(2), pages 159-178, July.
    42. Lakhani, Karim R. & von Hippel, Eric, 2003. "How open source software works: "free" user-to-user assistance," Research Policy, Elsevier, vol. 32(6), pages 923-943, June.
    43. John Seely Brown & Paul Duguid, 1991. "Organizational Learning and Communities-of-Practice: Toward a Unified View of Working, Learning, and Innovation," Organization Science, INFORMS, vol. 2(1), pages 40-57, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Davide Secchi & Raffaello Seri, 2017. "Controlling for false negatives in agent-based models: a review of power analysis in organizational research," Computational and Mathematical Organization Theory, Springer, vol. 23(1), pages 94-121, March.
    2. Emanuele Borgonovo & Marco Pangallo & Jan Rivkin & Leonardo Rizzo & Nicolaj Siggelkow, 2022. "Sensitivity analysis of agent-based models: a new protocol," Computational and Mathematical Organization Theory, Springer, vol. 28(1), pages 52-94, March.
    3. Julien Clement & Phanish Puranam, 2018. "Searching for Structure: Formal Organization Design as a Guide to Network Evolution," Management Science, INFORMS, vol. 64(8), pages 3879-3895, August.
    4. Stefano Brusoni & Lorenzo Cassi & Simge Tuna, 2021. "Knowledge integration between technical change and strategy making," Journal of Evolutionary Economics, Springer, vol. 31(5), pages 1521-1552, November.
    5. Argote, Linda & Fahrenkopf, Erin, 2016. "Knowledge transfer in organizations: The roles of members, tasks, tools, and networks," Organizational Behavior and Human Decision Processes, Elsevier, vol. 136(C), pages 146-159.
    6. Sheen S. Levine & Michael J. Prietula, 2014. "Open Collaboration for Innovation: Principles and Performance," Organization Science, INFORMS, vol. 25(5), pages 1414-1433, October.
    7. Yoshikawa, Katsuhiko & Wu, Chia-huei & Lee, Hyun-Jung, 2018. "Generalized social exchange and its relevance to new era workplace relationships," LSE Research Online Documents on Economics 90155, London School of Economics and Political Science, LSE Library.
    8. Ilir Morina, 2021. "The Impact of Innovation and Knowledge Management on Enterprises’ Revenues in Serbia," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 905-917.
    9. Sheen S. Levine & Mark Bernard & Rosemarie Nagel, 2018. "Strategic intelligence: The cognitive capability to anticipate competitor behaviour," Strategic Management Journal, Wiley Blackwell, vol. 39(2), pages 527-527, February.
    10. Li, Shenxue & Clark, Timothy & Sillince, John, 2018. "Constructing a strategy on the creation of core competencies for African companies," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 204-213.
    11. Henrich R. Greve & Lori Qingyuan Yue, 2017. "Hereafter: How Crises Shape Communities Through Learning and Institutional Legacies," Organization Science, INFORMS, vol. 28(6), pages 1098-1114, December.
    12. Yoshikawa, Katsuhhiko & Wu, Chia-Huei & Lee, Hyun-Jung, 2020. "Generalized exchange orientation: conceptualization and scale development," LSE Research Online Documents on Economics 101478, London School of Economics and Political Science, LSE Library.
    13. Maldea, Radu-Andrei, 2023. "Winning when Going Global – On the Role of Heritage and Strategic Moves for Internationalization Endeavors of Start-ups," Junior Management Science (JUMS), Junior Management Science e. V., vol. 8(2), pages 532-568.
    14. Huang, Allen H. & Lin, An-Ping & Zang, Amy Y., 2022. "Cross-industry information sharing among colleagues and analyst research," Journal of Accounting and Economics, Elsevier, vol. 74(1).
    15. Amit Jain & Bruce Kogut, 2014. "Memory and Organizational Evolvability in a Neutral Landscape," Organization Science, INFORMS, vol. 25(2), pages 479-493, April.
    16. Liliana Pérez-Nordtvedt & Debmalya Mukherjee & Ben L. Kedia, 2015. "Cross-Border Learning, Technological Turbulence and Firm Performance," Management International Review, Springer, vol. 55(1), pages 23-51, February.
    17. Ilir Morina, 2021. "The Impact of Innovation and Knowledge Management on Enterprises Revenues in Serbia," European Research Studies Journal, European Research Studies Journal, vol. 0(4B), pages 838-850.
    18. Wayne E. Baker & Nathaniel Bulkley, 2014. "Paying It Forward vs. Rewarding Reputation: Mechanisms of Generalized Reciprocity," Organization Science, INFORMS, vol. 25(5), pages 1493-1510, October.
    19. Nor Ahmad Khamzah & Shamsiah Hussin & Sharifah Rafidah Wan Bagus & Sarah Md. Sah & Alwi Mohd Yunus, 2017. "Investigation of Knowledge Management Practices among academicians at Bahagian Teknologi Pendidikan Negeri (BTPN) Selangor and MARA Higher Education Institute: A Comparative Study," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(11), pages 811-825, November.
    20. Ilir Morina, 2022. "The Impact of Innovation and Knowledge Management on Enterprises Revenues in Serbia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 15-28.
    21. Nisar, Tahir M. & Prabhakar, Guru & Strakova, Lubica, 2019. "Social media information benefits, knowledge management and smart organizations," Journal of Business Research, Elsevier, vol. 94(C), pages 264-272.
    22. Ray Reagans & Param Vir Singh & Ramayya Krishnan, 2015. "Forgotten Third Parties: Analyzing the Contingent Association Between Unshared Third Parties, Knowledge Overlap, and Knowledge Transfer Relationships with Outsiders," Organization Science, INFORMS, vol. 26(5), pages 1400-1414, October.
    23. Linda Argote & Sunkee Lee & Jisoo Park, 2021. "Organizational Learning Processes and Outcomes: Major Findings and Future Research Directions," Management Science, INFORMS, vol. 67(9), pages 5399-5429, September.
    24. Sheen S. Levine & Michael J. Prietula & Ann Majchrzak, 2022. "Advice in Crisis: Principles of Organizational and Entrepreneurial Resilience," Journal of Organization Design, Springer;Organizational Design Community, vol. 11(4), pages 145-168, December.
    25. Zhang, Feng & Jiang, Guohua & Cantwell, John A., 2019. "Geographically Dispersed Technological Capability Building and MNC Innovative Performance: The Role of Intra-firm Flows of Newly Absorbed Knowledge," Journal of International Management, Elsevier, vol. 25(3), pages 1-1.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Linda Argote & Ella Miron-Spektor, 2011. "Organizational Learning: From Experience to Knowledge," Organization Science, INFORMS, vol. 22(5), pages 1123-1137, October.
    2. Linda Argote & Sunkee Lee & Jisoo Park, 2021. "Organizational Learning Processes and Outcomes: Major Findings and Future Research Directions," Management Science, INFORMS, vol. 67(9), pages 5399-5429, September.
    3. Edward G. Anderson & Kyle Lewis, 2014. "A Dynamic Model of Individual and Collective Learning Amid Disruption," Organization Science, INFORMS, vol. 25(2), pages 356-376, April.
    4. Sheen S. Levine & Michael J. Prietula & Ann Majchrzak, 2022. "Advice in Crisis: Principles of Organizational and Entrepreneurial Resilience," Journal of Organization Design, Springer;Organizational Design Community, vol. 11(4), pages 145-168, December.
    5. Gabriel Szulanski & Dimo Ringov & Robert J. Jensen, 2016. "Overcoming Stickiness: How the Timing of Knowledge Transfer Methods Affects Transfer Difficulty," Organization Science, INFORMS, vol. 27(2), pages 304-322, April.
    6. Argote, Linda & Fahrenkopf, Erin, 2016. "Knowledge transfer in organizations: The roles of members, tasks, tools, and networks," Organizational Behavior and Human Decision Processes, Elsevier, vol. 136(C), pages 146-159.
    7. Simon Rodan, 2008. "Organizational learning: effects of (network) structure and (individual) strategy," Computational and Mathematical Organization Theory, Springer, vol. 14(3), pages 222-247, September.
    8. Robert S. Huckman & Bradley R. Staats, 2008. "Variation in Experience and Team Familiarity: Addressing the Knowledge Acquisition-Application Problem," Harvard Business School Working Papers 09-035, Harvard Business School.
    9. Aimée A. Kane, 2010. "Unlocking Knowledge Transfer Potential: Knowledge Demonstrability and Superordinate Social Identity," Organization Science, INFORMS, vol. 21(3), pages 643-660, June.
    10. Christoph Riedl & Victor P. Seidel, 2018. "Learning from Mixed Signals in Online Innovation Communities," Organization Science, INFORMS, vol. 29(6), pages 1010-1032, December.
    11. Elina H. Hwang & Param Vir Singh & Linda Argote, 2015. "Knowledge Sharing in Online Communities: Learning to Cross Geographic and Hierarchical Boundaries," Organization Science, INFORMS, vol. 26(6), pages 1593-1611, December.
    12. Christos Kolympiris & Sebastian Hoenen & Peter G. Klein, 2019. "Learning by Seconding: Evidence from National Science Foundation Rotators," Organization Science, INFORMS, vol. 30(3), pages 528-551, May.
    13. Linda Argote & Henrich R. Greve, 2007. "A Behavioral Theory of the Firm ---40 Years and Counting: Introduction and Impact," Organization Science, INFORMS, vol. 18(3), pages 337-349, June.
    14. Richard M. Burton & Børge Obel, 2011. "Computational Modeling for What-Is, What-Might-Be, and What-Should-Be Studies---And Triangulation," Organization Science, INFORMS, vol. 22(5), pages 1195-1202, October.
    15. Narda R. Quigley & Paul E. Tesluk & Edwin A. Locke & Kathryn M. Bartol, 2007. "A Multilevel Investigation of the Motivational Mechanisms Underlying Knowledge Sharing and Performance," Organization Science, INFORMS, vol. 18(1), pages 71-88, February.
    16. Megan Lawrence, 2018. "Taking Stock of the Ability to Change: The Effect of Prior Experience," Organization Science, INFORMS, vol. 29(3), pages 489-506, June.
    17. Nicolai J. Foss & Kenneth Husted & Snejina Michailova, 2010. "Governing Knowledge Sharing in Organizations: Levels of Analysis, Governance Mechanisms, and Research Directions," Journal of Management Studies, Wiley Blackwell, vol. 47(3), pages 455-482, May.
    18. Persson, Magnus, 2006. "The impact of operational structure, lateral integrative mechanisms and control mechanisms on intra-MNE knowledge transfer," International Business Review, Elsevier, vol. 15(5), pages 547-569, October.
    19. Giovanni Gavetti, 2012. "PERSPECTIVE—Toward a Behavioral Theory of Strategy," Organization Science, INFORMS, vol. 23(1), pages 267-285, February.
    20. Sunkee Lee, 2019. "Learning-by-Moving: Can Reconfiguring Spatial Proximity Between Organizational Members Promote Individual-level Exploration?," Organization Science, INFORMS, vol. 30(3), pages 467-488, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ororsc:v:23:y:2012:i:6:p:1748-1766. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.