Trust, control and knowledge transfer in small business networks

Abstract

The ability to transfer knowledge effectively in the networks of small and medium-sized firms (SMEs) is paramount for supporting firm competitiveness. Our research is the first one that explores the joint effect of trust and control mechanisms on knowledge transfer in the case of networks of SMEs. We use a multiple case study approach based on six Italian networks of SMEs. We analyse the joint impact of different ethical based trustworthiness factors-namely benevolence and integrity-and the levers of control (LOCs)-namely, belief, boundary, diagnostic and interactive LOCs-on knowledge transfer between SMEs in networks. We find that trust substitutes for the implementation of boundary, diagnostic, and belief tools, while it works jointly with interactive tools in order to support knowledge transfer. These insights not only provide a rich foundation for follow-up research, but also inform SME managers about how to increase the effectiveness and efficiency of knowledge transfer with their network partners.

The use of management control and performance measurement systems in SMEs

“…Specifically, Simons (1995) argued that, to achieve balance, organizations should use the four systems simultaneously, as they are interdependent and complementary. Because of its explanatory power, the LOC framework has played a prominent role in studies of MC and PM in management accounting research (Tuomela, 2005;Widener, 2007;Mundy, 2010;Henri, 2006;Kruis et al, 2016) and in operations management (e.g., Koufteros et al, 2014), but rarely in the context of SMEs (Heinicke et al, 2016;Massaro et al, 2017).…”

Sequential Coherence as a Success Factor in Personal Selling

“…Similarly, mutual trust is identified as an important factor in knowledge transfer (Wang et al, 2020;Zhang, 2020;Joia, 2006;Foos et al, 2006;Davenport & Prusak, 2003;Massaro et al, 2019). Fink and Kessler (2010), Welter (2012), Chae et al, (2020), Becerra et al (2008), Geneste and Galvin (2013) also emphasize trust as a factor influencing knowledge transfer.…”

“…The dimensions shown in Table 1 below can assist the researchers to identify the relevant indicators to measure the independent variables. Wang et al, 2019;Ohiomah et al, 2019;Crosby et al, 1990 Mutual trust Personal relationships Information disclosure Narayanan & Raja, 2020;Zhang, 2020;Joia, 2006;Chae et al, 2020;Foos et al, 2006;Wang et al, 2020;Shrama & Klein, 2020;Davenport & Prusak, 2003;Roberts, 2000;Massaro et al, 2019, Fink & Kessler, 2010Welter, 2012 Rewards Cost-benefit analyses Perceived benefits and corresponding costs Sharma & Garg, 2020;Disterer, 2003;Szulanski, 1996;Hansen et al, 1999;Leonard & Senesiper, 1998;O'Del & Grayson, 1998;Davenport & Prusak, 2003;Nguyen et al, 2019…”

Editorial

“…In addition, the risk of losing core knowledge is inherently present in inter-organizational relationships. While firms can benefit a great deal from establishing inter-organizational relationships to expand their knowledge, making their knowledge available to partners increases the risk of misappropriation of private knowledge beyond the scope of the collaboration itself (Massaro et al, 2019). This kind of "knowledge leakage" has been inadequately investigated in extant research (Jiang et al, 2013), and more comprehensive studies that deal with this issue are called for.…”