Abstract
This paper examines the central role of knowledge transfer and network relationships in the context of services, focusing especially on professional service firms (PSFs). It develops a conceptual framework applying the knowledge-based view (KBV) of the firm to explain how knowledge transfer capability and network relationships impact the ability of PSFs in stimulating growth via innovation and internationalisation. This conceptual framework is supported by three propositions and emphasises the close and interdependent relationship of knowledge transfer and network relationships. It is proposed that the strategy of a PSF needs to specifically address the role of knowledge and networks for success in innovation and internationalisation, with ultimate impact on PSFs growth. Areas of future research and managerial implications are outlined.
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