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When does tapping external sources of knowledge result in knowledge integration?
Journal article   Peer reviewed

When does tapping external sources of knowledge result in knowledge integration?

Daniel Tzabbar, Barak S. Aharonson and Terry L. Amburgey
Research policy, v 42(2), pp 481-494
Mar 2013

Abstract

Biotechnology Knowledge integration Prior experience R&D alliance Scientific recruitment
[Display omitted] ► We compare the speed of knowledge is integrated from alliance and recruitment. ► Knowledge of recruitee is integrated faster than knowledge of alliance partner. ► Recruitee distal knowledge integrated faster than familiar knowledge of a partner. ► Speed of integration depends on accumulated experience with alliance and recruitment. ► Leveraging external knowledge depend on knowledge source and internal capabilities. This study offers theory and evidence to demonstrate that the time it takes a firm to integrate external sources of information depends on the attributes of the knowledge source and firm's own internal capabilities. By assessing innovative activities by 456 dedicated U.S. biotechnology firms between 1973 and 2003, this article shows that the rate of knowledge integration depends on the type of knowledge source (R&D alliance vs. scientist recruitment) and the degree of familiarity with the knowledge transferred. However, these relationships also are moderated by the degree of prior experience. Specifically, prior experience in forming R&D alliances and recruiting scientists from other firms significantly reduces the time it takes for firms to integrate distal knowledge. The results offer insights into the challenges of developing combinative capabilities by forming R&D alliances and hiring scientific personnel.

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Management
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