Skip to main content

Advertisement

SpringerLink
Log in

The Inheritance Imperative: A Game-Theoretic Analysis of Reverse Tacit Knowledge Transfer

  • Published:
Journal of the Knowledge Economy Aims and scope Submit manuscript

Abstract

Using evolutionary game theory, this paper delves into the strategic dynamics of reverse tacit knowledge transfer within incumbent-spinout alliances. It focuses on understanding how tacit knowledge, initially inherited by spinouts from parent firms, is transferred back into a corporate entrepreneurial ecosystem. The study employs evolutionary game models to analyze strategic decisions made by incumbents and spinouts, considering factors like knowledge integration, scarcity, risk, and cultural differences in mergers and acquisitions (M&A) and alliance contexts. Key findings reveal that factors such as incumbents’ attitudes towards knowledge integration and reuse, tacit knowledge scarcity, and risk profiles significantly influence reverse transfer in M&A scenarios. Partnership matching, income distribution, and spinout knowledge sensitivity are crucial in alliance settings. The research also highlights the role of reputation loss and contract breach penalties in deterring opportunistic behavior and fostering positive strategic choices. This exploration provides valuable insights for incumbents and spinouts to optimize their reverse knowledge transfer strategies. It advances our understanding of knowledge exchange in incumbent-spinout relationships and proposes strategic guidance to foster mutually beneficial collaborations and innovation, aligning well with the evolving dynamics of knowledge economies and entrepreneurial ecosystems.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5
Fig. 6
Fig. 7
Fig. 8
Fig. 9
Fig. 10
Fig. 11
Fig. 12
Fig. 13
Fig. 14
Fig. 15
Fig. 16
Fig. 17
Fig. 18

Similar content being viewed by others

Data Availability

The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request.

References

  • Adamik, A., & Nowicki, M. (2019). Pathologies and paradoxes of co-creation: A contribution to the discussion about corporate social responsibility in building a competitive advantage in the age of Industry 4.0. Sustainability, 11(18), 4954.

    Article  Google Scholar 

  • Adams, P., Fontana, R., & Malerba, F. (2019). Linking vertically related industries: Entry by employee spinouts across industry boundaries. Industrial and Corporate Change, 28(3), 529–550.

    Article  Google Scholar 

  • Adams, P., Fontana, R., & Malerba, F. (2022). Knowledge resources and the acquisition of spinouts. Eurasian Business Review, 12(2), 277–313.

    Article  Google Scholar 

  • Adobor, H. (2020). Supply chain resilience: An adaptive cycle approach. The International Journal of Logistics Management, 31(3), 443–463.

    Article  Google Scholar 

  • Ahmad, F., & Karim, M. (2019). Impacts of knowledge sharing: A review and directions for future research. Journal of Workplace Learning, 31(3), 207–230.

    Article  Google Scholar 

  • Alkhaldi, D. A. (2018). Knowledge sharing and IT/business partnership: An integrated view of risk management. In I. Management Association (Ed.), Global business expansion: Concepts, methodologies, tools, and applications (pp. 834–851). IGI Global. https://doi.org/10.4018/978-1-5225-5481-3.ch037

  • AmoozadMahdiraji, H., Beheshti, M., Jafari-Sadeghi, V., & Garcia-Perez, A. (2022). What drives inter-organisational knowledge management? The cause and effect analysis using a multi-layer multi-criteria decision-making framework. Journal of Knowledge Management, 26(9), 2195–2221.

    Article  Google Scholar 

  • Arias-Pérez, J., Lozada, N., & Henao-García, E. (2020). When it comes to the impact of absorptive capacity on co-innovation, how really harmful is knowledge leakage? Journal of Knowledge Management, 24(8), 1841–1857.

    Article  Google Scholar 

  • Azeem, M., Ahmed, M., Haider, S., & Sajjad, M. (2021). Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation. Technology in Society, 66, 101635.

    Article  Google Scholar 

  • Bae, J., & Lee, J. M. (2021). How technological overlap between spinouts and parent firms affects corporate venture capital investments in spinouts: The role of competitive tension. Academy of Management Journal, 64(2), 643–678.

    Article  Google Scholar 

  • Bahoo-Torodi, A., & Torrisi, S. (2022). When do spinouts benefit from market overlap with parent firms? Journal of Business Venturing, 37(6), 106249.

    Article  Google Scholar 

  • Balasubramanian, N., & Sakakibara, M. (2023). Incidence and performance of spinouts and incumbent new establishments: Role of selection and redeployability within parent firms. Strategic Management Journal, 44(10), 2460–2488.

    Article  PubMed  Google Scholar 

  • Barrett, G., Dooley, L., & Bogue, J. (2021). Open innovation within high-tech SMEs: A study of the entrepreneurial founder’s influence on open innovation practices. Technovation, 103, 102232.

    Article  Google Scholar 

  • Berry, H. (2015). Knowledge inheritance in global industries: The impact of parent firm knowledge on the performance of foreign subsidiaries. Academy of Management Journal, 58(5), 1438–1458.

    Article  Google Scholar 

  • Bhardwaj, B. (2019). Role of knowledge management in enhancing the entrepreneurial ecosystems through corporate entrepreneurship and strategic intent in high-tech firms. Journal of the Knowledge Economy, 10, 1831–1859.

    Article  Google Scholar 

  • Bierly, P. E., III., & Gallagher, S. (2007). Explaining alliance partner selection: Fit, trust and strategic expediency. Long Range Planning, 40(2), 134–153.

    Article  Google Scholar 

  • Bodlaj, M., Kadic-Maglajlic, S., & Vida, I. (2020). Disentangling the impact of different innovation types, financial constraints and geographic diversification on SMEs’ export growth. Journal of Business Research, 108, 466–475.

    Article  Google Scholar 

  • Calipha, R., Brock, D. M., Rosenfeld, A., & Dvir, D. (2018). Acquired, transferred and integrated knowledge: A study of M&A knowledge performance. Journal of Strategy and Management, 11(3), 282–305.

    Article  Google Scholar 

  • Campbell, B. A., Ganco, M., Franco, A. M., & Agarwal, R. (2012). Who leaves, where to, and why worry? Employee mobility, entrepreneurship and effects on source firm performance. Strategic Management Journal, 33(1), 65–87.

    Article  Google Scholar 

  • Chen, H., BaptistaNunes, M., Ragsdell, G., & An, X. (2018). Extrinsic and intrinsic motivation for experience grounded tacit knowledge sharing in Chinese software organisations. Journal of Knowledge Management, 22(2), 478–498.

    Article  Google Scholar 

  • Cheng, J., Chelliah, S., & Teoh, A. P. (2021). The effect of subsidiary characteristics on efficiency in knowledge transfer between multinational companies. Journal of Entrepreneurship, Business and Economics, 9(1), 230–274.

    Google Scholar 

  • Chila, V., & Martin, X. (2018). Expanding horizons? Effects of spin-outs on parents’. In Academy of Management Proceedings (Vol. 2018, No. 1, p. 15309) technological positions. Briarcliff Manor, NY 10510: Academy of Management.

    Google Scholar 

  • Cirillo, B. (2019). External learning strategies and technological search output: Spinout strategy and corporate invention quality. Organization Science, 30(2), 361–382.

    Article  Google Scholar 

  • Corsino, M., Giuri, P., & Torrisi, S. (2019). Technology spin-offs: Teamwork, autonomy, and the exploitation of business opportunities. The Journal of Technology Transfer, 44(5), 1603–1637.

    Article  Google Scholar 

  • Costa, C., & Baptista, R. (2023). Knowledge inheritance and performance of spinouts. Eurasian Business Review, 13(1), 29–55.

    Article  Google Scholar 

  • Fischer, B., Guerrero, M., Guimón, J., & Schaeffer, P. R. (2021). Knowledge transfer for frugal innovation: Where do entrepreneurial universities stand? Journal of Knowledge Management, 25(2), 360–379.

    Article  Google Scholar 

  • Franco, A. M., & Filson, D. (2006). Spin-outs: Knowledge diffusion through employee mobility. The Rand Journal of Economics, 37(4), 841–860.

    Article  Google Scholar 

  • Friedman, D. (1991). Evolutionary game in economics. Econometrica, 59(3), 637–666.

    Article  MathSciNet  Google Scholar 

  • Furlan, A., & Grandinetti, R. (2014). Spin-off performance in the start-up phase–a conceptual framework. Journal of Small Business and Enterprise Development, 21(3), 528–544.

    Article  Google Scholar 

  • Fuster, E., Padilla-Meléndez, A., Lockett, N., & del-Águila-Obra, A. R. (2019). The emerging role of university spin-off companies in developing regional entrepreneurial university ecosystems: The case of Andalusia. Technological Forecasting and Social Change, 141, 219–231.

    Article  Google Scholar 

  • Gaonkar, S., & Moeen, M. (2023). Standing on the parent’s shoulder or in its shadow? Alliance partner overlap between employee spinouts and their parents. Strategic Management Journal, 44(2), 415–440.

    Article  Google Scholar 

  • Gavidia-Calderon, C., Sarro, F., Harman, M., & Barr, E. T. (2020). Game-theoretic analysis of development practices: Challenges and opportunities. Journal of Systems and Software, 159, 110424.

    Article  Google Scholar 

  • Ge, B., & Campopiano, G. (2022). Knowledge management in family business succession: Current trends and future directions. Journal of Knowledge Management, 26(2), 326–349.

    Article  Google Scholar 

  • Guckenbiehl, P., de Zubielqui, G. C., & Lindsay, N. (2021). Knowledge and innovation in start-up ventures: A systematic literature review and research agenda. Technological Forecasting and Social Change, 172, 121026.

    Article  Google Scholar 

  • Hoang, G., Le, T. T. T., Tran, A. K. T., & Du, T. (2020). Entrepreneurship education and entrepreneurial intentions of university students in Vietnam: The mediating roles of self-efficacy and learning orientation. Education Training, 63(1), 115–133.

    Article  Google Scholar 

  • Kabir, M. N. (2019). Knowledge-based social entrepreneurship: Understanding knowledge economy, innovation, and the future of social entrepreneurship. Springer.

    Book  Google Scholar 

  • Kastampolidou, K., & Andronikos, T. (2020). A survey of evolutionary games in biology. GeNeDis 2018: Computational Biology and Bioinformatics, 253–261. https://doi.org/10.1007/978-3-030-32622-7_23

  • Kean Yew, L. (2023). From family firm to Japanese OEM in tacit knowledge innovation: A case study of Sin Kwang plastic resources in Malaysia. Journal of Organizational Change Management, 36(6), 966–984.

    Article  Google Scholar 

  • Kim, J., Paek, B., & Lee, H. (2022). Exploring innovation ecosystem of incumbents in the face of technological discontinuities: Automobile firms. Sustainability, 14(3), 1606.

    Article  Google Scholar 

  • Klepper, S., & Sleeper, S. (2005). Entry by spinoffs. Management Science, 51(8), 1291–1306.

    Article  Google Scholar 

  • Kötting, M. (2020). Corporate incubators as knowledge brokers between business units and ventures: A systematic review and avenues for future research. European Journal of Innovation Management, 23(3), 474–499.

    Article  Google Scholar 

  • Kuhlmann, M., Bening, C. R., & Hoffmann, V. H. (2023). How incumbents realize disruptive circular innovation-Overcoming the innovator’s dilemma for a circular economy. Business Strategy and the Environment, 32(3), 1106–1121.

    Article  Google Scholar 

  • Lange, S., & Wagner, M. (2021). The influence of exploratory versus exploitative acquisitions on innovation output in the biotechnology industry. Small Business Economics, 56, 659–680.

    Article  Google Scholar 

  • Liu, W., & Yang, J. (2018). The evolutionary game theoretic analysis for sustainable cooperation relationship of collaborative innovation network in strategic emerging industries. Sustainability, 10(12), 4585.

    Article  Google Scholar 

  • Lopes, J. M., Oliveira, M., Lopes, J., & Zaman, U. (2021). Networks, innovation and knowledge transfer in tourism industry: An empirical study of SMEs in Portugal. Social Sciences, 10(5), 159.

    Article  Google Scholar 

  • Meng, D., Li, X., & Rong, K. (2019). Industry-to-university knowledge transfer in ecosystem-based academic entrepreneurship: Case study of automotive dynamics & control group in Tsinghua University. Technological Forecasting and Social Change, 141, 249–262.

    Article  Google Scholar 

  • Mudambi, R., Piscitello, L., & Rabbiosi, L. (2014). Reverse knowledge transfer in MNEs: Subsidiary innovativeness and entry modes. Long Range Planning, 47(1–2), 49–63.

    Article  Google Scholar 

  • Munjal, S., Andersson, U., Pereira, V., & Budhwar, P. (2021). Exploring reverse knowledge transfer and asset augmentation strategy by developed country MNEs: Case study evidence from the Indian pharmaceutical industry. International Business Review, 30(6), 101882.

    Article  Google Scholar 

  • Nair, S. R., Demirbag, M., Mellahi, K., & Pillai, K. G. (2018). Do parent units benefit from reverse knowledge transfer? British Journal of Management, 29(3), 428–444.

    Article  Google Scholar 

  • Ni, G., Zhang, Z., Yuan, Z., Huang, H., Xu, N., & Deng, Y. (2022). Transformation paths and influencing factors of tacit knowledge into explicit knowledge in real estate companies: A qualitative study. Engineering, Construction and Architectural Management, 29(3), 1319–1342.

    Google Scholar 

  • O’Connor, G. C. (2008). Major innovation as a dynamic capability: A systems approach. Journal of Product Innovation Management, 25(4), 313–330.

    Article  Google Scholar 

  • Ojaghi, H., Mohammadi, M., & Yazdani, H. R. (2019). A synthesized framework for the formation of startups’ innovation ecosystem: A systematic literature review. Journal of Science and Technology Policy Management, 10(5), 1063–1097.

    Article  Google Scholar 

  • Olan, F., Liu, S., Neaga, I., Chen, H., & Nakpodia, F. (2019). How cultural impact on knowledge sharing contributes to organizational performance: Using the fsQCA approach. Journal of Business Research, 94, 313–319.

    Article  Google Scholar 

  • Pearce, J. A., II., & Patel, P. C. (2022). Reaping the financial and strategic benefits of a divestiture by spin-off. Business Horizons, 65(3), 291–301.

    Article  Google Scholar 

  • Porter, M. E. (1991). Towards a dynamic theory of strategy. Strategic Management Journal, 12(S2), 95–117.

    Article  Google Scholar 

  • Prokop, D., Huggins, R., & Bristow, G. (2019). The survival of academic spinoff companies: An empirical study of key determinants. International Small Business Journal, 37(5), 502–535.

    Article  Google Scholar 

  • Rådberg, K. K., & Löfsten, H. (2023). The entrepreneurial university and development of large-scale research infrastructure: Exploring the emerging university function of collaboration and leadership. The Journal of Technology Transfer, 1–33. https://doi.org/10.1007/s10961-023-10033-x

  • Raffiee, J., Ganco, M., & Campbell, B. A. (2020). Better the devil you know? Examining the relationship between spinout team assembly and spinout survival. In Employee Inter-and Intra-Firm Mobility (Vol. 41, pp. 389–409). Emerald Publishing Limited. https://doi.org/10.1108/S0742-332220200000041026

  • Rexhepi, G., & Srhoj, S. (2018). Strategy as an ever evolving road to success of growing enterprises. World Review of Entrepreneurship, Management and Sustainable Development, 14(3), 333–347.

    Article  Google Scholar 

  • Sanford, S., Schwartz, B., & Khan, Y. (2020). The role of tacit knowledge in communication and decision-making during emerging public health incidents. International Journal of Disaster Risk Reduction, 50, 101681.

    Article  CAS  PubMed  PubMed Central  Google Scholar 

  • Sansone, G., Battaglia, D., Landoni, P., & Paolucci, E. (2021). Academic spinoffs: The role of entrepreneurship education. International Entrepreneurship and Management Journal, 17(1), 369–399.

    Article  Google Scholar 

  • Scaringella, L., & Radziwon, A. (2018). Innovation, entrepreneurial, knowledge, and business ecosystems: Old wine in new bottles? Technological Forecasting and Social Change, 136, 59–87.

    Article  Google Scholar 

  • Sears, J., & Hoetker, G. (2014). Technological overlap, technological capabilities, and resource recombination in technological acquisitions. Strategic Management Journal, 35(1), 48–67.

    Article  Google Scholar 

  • Shah, S. K., Agarwal, R., & Echambadi, R. (2019). Jewels in the crown: Exploring the motivations and team building processes of employee entrepreneurs. Strategic Management Journal, 40(9), 1417–1452.

    Article  Google Scholar 

  • Sohail, F. (2021). From employee to entrepreneur: Learning, employer size, and spinout dynamics. Journal of Economic Dynamics and Control, 133, 104270.

    Article  Google Scholar 

  • Steiber, A., & Alänge, S. (2021). Corporate-startup collaboration: Effects on large firms’ business transformation. European Journal of Innovation Management, 24(2), 235–257.

    Article  Google Scholar 

  • Stock, G. N., Tsai, J. C. A., Jiang, J. J., & Klein, G. (2021). Coping with uncertainty: Knowledge sharing in new product development projects. International Journal of Project Management, 39(1), 59–70.

    Article  Google Scholar 

  • True, J. L., Jones, B. D., & Baumgartner, F. R. (2019). Punctuated-equilibrium theory: Explaining stability and change in public policymaking. In Theories of the Policy Process, Second Edition (pp. 155–187). Routledge. https://doi.org/10.4324/9780367274689-6

  • Villalonga, B., & McGahan, A. M. (2005). The choice among acquisitions, alliances, and divestitures. Strategic Management Journal, 26(13), 1183–1208.

    Article  Google Scholar 

  • Walter, S. G., Heinrichs, S., & Walter, A. (2014). Parent hostility and spin-out performance. Strategic Management Journal, 35(13), 2031–2042.

    Article  Google Scholar 

  • Walter, S. G. (2023). Spin-outs’ knowledge legacies and parent hostility: A competitive dynamics view. Small Business Economics, 1–21. https://doi.org/10.1007/s11187-023-00849-0

  • Xiong, L., & King, C. (2018). Too much of a good thing? Examining how proactive personality affects employee brand performance under formal and informal organizational support. International Journal of Hospitality Management, 68, 12–22.

    Article  Google Scholar 

  • Xue, R., Qian, G., Qian, Z., & Li, L. (2019). Environmental turmoil and firms’ core structure dynamism: The moderating role of strategic alliances. Journal of Business & Industrial Marketing, 34(7), 1619–1638.

    Article  Google Scholar 

  • Yashiro, K., Lim, Y., Sengoku, S., Aoyama, A., & Kodama, K. (2024). The rise of spin-offs: Fueling pharmaceutical innovation through collaboration. Journal of Open Innovation: Technology, Market, and Complexity, 10(1), 100200. https://doi.org/10.1016/j.joitmc.2023.100200

Download references

Funding

This article has been partly funded by the National Natural Science Foundation of China (ID: 72372039).

Author information

Authors and Affiliations

  1. School of Economics and Management, Harbin Engineering University, Harbin, People’s Republic of China

    Yin Hang & Yuhan Zhang

Authors
  1. Yin Hang
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Yuhan Zhang
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Yuhan Zhang.

Ethics declarations

Conflict of Interest

The authors declare no competing interests.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Hang, Y., Zhang, Y. The Inheritance Imperative: A Game-Theoretic Analysis of Reverse Tacit Knowledge Transfer. J Knowl Econ (2024). https://doi.org/10.1007/s13132-024-01872-6

Download citation

  • Received:

  • Accepted:

  • Published:

  • DOI: https://doi.org/10.1007/s13132-024-01872-6

Keywords

Search

Navigation