Knowledge Management: Does Capture Impede Creation?

Abstract

Economists and strategic management theorists interested in sustained competitive advantage often examine firms’ management of knowledge. Somewhat surprisingly, the interaction between knowledge creation and knowledge capture practices has received little attention. Using survey data from nearly 900 Australian firms we examine this issue, paying particular attention to whether knowledge capture impedes knowledge creation. We find that firms which favor closed-learning practices tend to rely more upon patents and secrecy, and eschew lead-time and brands as ways to capture profits. Firms that favor open styles of learning operate in the opposite manner.