Abstract
This study surveys a broad spectrum of US manufacturer and service firms to examine the effect of tacit knowledge transfer on firm innovation capability. The authors present a set of hypotheses concerning the relationships between inter‐firm relationship strength and tacitness of knowledge transfer, extent of tacit knowledge transfer and innovation capability, and innovation capability and innovation performance based on the theory of knowledge. Moderating roles of firm collaborative experience and firm size on the relationship between inter‐firm relationship strength and the extent of tacit knowledge transfer are considered. Empirical results generally support the predictions from the theory and managerial implications are included.
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