Knowledge Combination and Knowledge Creation in a Foreign‐Market Network

Abstract

This article rests on the idea that knowledge is dispersed among different individuals and entities. For international entrepreneurial firms to create new knowledge, they need to find ways to combine these dispersed bits of knowledge. Because of the notion that resource constraints make international entrepreneurial firms dependent on external knowledge, it is assumed that a portion of knowledge combination takes place in networks. The purpose of this article was to investigate the prospective impact network knowledge and knowledge combinations have on entrepreneurial firms' knowledge creation. Three hypotheses are developed and tested in a structural equation model, using linear structural relations (LISREL, Scientific Software International, Inc.).