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Strategic Entrepreneurship Journal 2012

The Compensatory Relationship between Technological Relatedness, Social Interaction, and Knowledge Flow between Firms

H. Kevin Steensma1; Michael D. Howard2,3; Marjorie A. Lyles4,5; Charles Dhanaraj4,5

1 University of Washington · 2 Texas College · 3 Texas A&M University · 4 Indiana University Indianapolis · 5 Indiana University – Purdue University Indianapolis

Abstract

Knowledge flow between two firms has been found to be enhanced by both technological relatedness and social interaction. We build on work in education psychology and consider how cognitive and social aspects of learning may be compensatory. Using a sample of 61 alliances involving E li L illy and its partners, we find the importance of social interaction between Lilly and its partner to partner learning decreased as their technological relatedness increased. Likewise, the importance of technological relatedness to partner learning decreased as social interaction increased. This study provides nuance on the criticality of technological relatedness and social interaction for learning.

DOI
10.1002/sej.1144
Sources
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