| Author: | Menon, T. Pfeffer, J. |
| Title: | Valuing internal vs. external knowledge: Explaining the preference for outsiders |
| Journal: | Management Science
2003 : APR, VOL. 49:4, p. 497-513 |
| Index terms: | Knowledge management Managers Competition Learning Case studies Companies USA |
| Language: | eng |
| Abstract: | This paper compares how managers value knowledge from internal and external sources. Although many theories account for favoritism toward insiders, it is found that preferences for knowledge obtained from outsiders are also prevalent. Two complementary case studies and survey data from managers demonstrate the phenomenon of valuing external knowledge more highly than internal knowledge and reveal some mechanisms through which this process occurs. This paper finds evidence that the preference for outsider knowledge is the result of managerial responses to (1) the contrasting status implications of learning from internal vs. external competitors, and (2) the availability or scarcity of knowledge-internal knowledge is more readily available and hence subject to greater scrutiny, while external knowledge is more scarce. |
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