A resource-based analysis of realized knowledge relatedness in diversified firms

Manuel Villasalero

doi:10.1016/j.jbusres.2016.10.011

Manuel Villasalero

Open Access

https://doi.org/10.1016/j.jbusres.2016.10.011

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Abstract

The competitiveness of related diversified firms depends upon their ability to exploit knowledge relatedness by using the internal knowledge transfer processes within the organizational network. However, most existing studies deal with potential knowledge relatedness at the corporate level, rather than focusing on realized knowledge flows among divisions at the business unit level. Little is consequently known about the very essence of related diversifiers, i.e., the management of knowledge flows within the corporate knowledge network. This study therefore attempts to bridge this research gap by distinguishing four knowledge roles within related firms and analyzing their relative performance outcomes. Based on a sample of 116 product divisions, results indicate that divisions playing a knowledge provider role outperform those that not play that role, thus signaling unique resource endowments in the formers. On the contrary, those divisions which plays a knowledge receiving role do not benefit from the internal accumulation of resources.

Highlights

The increasing relevance of knowledge resources as regards firms remaining competitive in the global economy signifies that the sharing and transference of knowledge across and within firms’ boundaries have attracted more and more interest from researchers and practitioners (van Wijk et al 2008; Kumar and Ganesh 2009; Ribière and Walter 2013)
Consistent with resource-based considerations, the results indicate that the divisions that play a knowledge provider role outperform those that do not play that knowledge role within the related firm, which supports the notion that knowledge outflows are a sign of having unique resource endowments
A scatterplot analysis of the four knowledge role categories with knowledge outflow and knowledge inflow as the Cartesian axes reveals that the categories on the main diagonal (Differentiated Innovators and Integrated Players) are far more populated than those in offdiagonal positions (Corporate Innovators and Implementers), which is consistent with previous findings (Figure 3)

Summary

Introduction

The increasing relevance of knowledge resources as regards firms remaining competitive in the global economy signifies that the sharing and transference of knowledge across and within firms’ boundaries have attracted more and more interest from researchers and practitioners (van Wijk et al 2008; Kumar and Ganesh 2009; Ribière and Walter 2013). The internal transfer of knowledge is vital for related diversified firms, since the exploitation of knowledge relatedness is the cornerstone of this corporate-level diversification strategy (Breschi et al 2003; Kor and Leblebici 2005). This research gap is the consequence of a long-standing tradition in diversification studies according to which synergies are assumed to be realized rather than ascertaining whether or not they are realized (Davis and Thomas 1993). These studies assess the potential knowledge relatedness within a business portfolio, whereas the realized knowledge relatedness obtained via the cross-business unit transfer of knowledge is overlooked (Bausch and Pils 2009)

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Discussion

Conclusion