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Abstract: Although informal networks are often emphasized as facilitating knowledge transfer, we use network data obtained from a multi-unit high-tech firm to show that the formal network also significantly contributes to inter-unit knowledge transfer. Individuals centrally placed in a network are, in addition, more involved in knowledge transfer, especially, the evidence suggests, in the case of the formal network. Focusing on the brokerage roles that individual fulfill, we find that knowledge transfer between units is more likely to occur through externally oriented brokers than internally oriented brokers in the formal network, but not in the informal network. Overall, the results show that there is more than one path to transfer knowledge.
knowledge transfer, inter-unit knowledge transfer, communication networks, centrality, brokerage roles
Abstract: Reputation-based trust, reflecting the time-dependency of trust, influences inter-firm alliances. A literature review resulted in hypotheses which were tested in an empirical study based on a quantitative analysis and in-depth interviews with firms in the bio tech sector of human health in the Netherlands. In high dynamic markets firms use reputation-based trust as an informal coordination mechanism for alliances. However, it does not reduce the necessity of contracts. Reputation results in a decline of overall transaction costs of alliances. Reputation-based trust reduces the uncertainty between alliance partners and the frequency of interaction. It does not result in an increase of asset specific investments.
inter-firm alliances, biotech, transaction costs (TCE), trust, reputation
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