The Inheritance Imperative: A Game-Theoretic Analysis of Reverse Tacit Knowledge Transfer

Using evolutionary game theory, this paper delves into the strategic dynamics of reverse tacit knowledge transfer within incumbent-spinout alliances. It focuses on understanding how tacit knowledge, initially inherited by spinouts from parent firms, is transferred back into a corporate entrepreneurial ecosystem. The study employs evolutionary game models to analyze strategic decisions made by incumbents and spinouts, considering factors like knowledge integration, scarcity, risk, and cultural differences in mergers and acquisitions (M&A) and alliance contexts. Key findings reveal that factors such as incumbents’ attitudes towards knowledge integration and reuse, tacit knowledge scarcity, and risk profiles significantly influence reverse transfer in M&A scenarios. Partnership matching, income distribution, and spinout knowledge sensitivity are crucial in alliance settings. The research also highlights the role of reputation loss and contract breach penalties in deterring opportunistic behavior and fostering positive strategic choices. This exploration provides valuable insights for incumbents and spinouts to optimize their reverse knowledge transfer strategies. It advances our understanding of knowledge exchange in incumbent-spinout relationships and proposes strategic guidance to foster mutually beneficial collaborations and innovation, aligning well with the evolving dynamics of knowledge economies and entrepreneurial ecosystems.