Intrafirm Knowledge Flows: The Impact of Knowledge Sourcing and Status Motives on Managers’ Knowledge Transfer Decisions
This study explores how managers make knowledge transfer decisions in multi-unit firms, where sharing knowledge across business units is critical for maximizing internal resources. Specifically, it examines how the source of knowledge - whether internal or external - and status recognition from corporate headquarters influence managers’ willingness to transfer knowledge. Through an experimental approach, the findings reveal that managers are more willing to transfer internally sourced knowledge than externally sourced knowledge in the absence of recognition. However, this difference diminishes when status recognition is offered. These insights contribute to the design of control systems that reduce internal information frictions in multi-unit firms.