Death hurts, but it isn't fatal: The postexit diffusion of knowledge created by innovative companies

Glenn Hoetker, Rajshree Agarwal

Research output: Contribution to journalArticle

118 Scopus citations

Abstract

There is little understanding of whether a firm's innovative knowledge dies with it or if instead significant diffusion of knowledge occurs even after a firm exits an industry. Theoretical predictions about the differing effects of firm exit on private and public knowledge and implications for interfirm knowledge transfer are forwarded. We investigated main and moderating effects of a firm's exit from the disk drive industry on knowledge diffusion to other firms, finding evidence that the ability to use a firm as a template plays a critical role in successfully replicating its knowledge. Absent this template, knowledge "stickiness" reduces knowledge diffusion. Copyright of the Academy of Management, all rights reserved.

Original languageEnglish (US)
Pages (from-to)446-467
Number of pages22
JournalAcademy of Management Journal
Volume50
Issue number2
DOIs
StatePublished - Apr 2007

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ASJC Scopus subject areas

  • Business and International Management
  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

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