Performance effects of international knowledge transfer: A panel analysis of human mobility between knowledge environments

Abstract

In this paper, we build on the argument that knowledge transfer is a source for competitive advantage. We test the proposition whether knowledge transfer from knowledge-rich to knowledge-indigent environments leads to better performance. Empirically, we test the performance effects of the flow of knowledge carriers between European and African countries in an industry in which human capital is the main input. Using panel data, we find mixed support for our hypotheses. We find that performance increases with the proportion of members having experience in knowledge-rich environments. We also find evidence that with increasing quality of such experience, performance decreases. In the last sections of the paper, we discuss these results and their implications for theories of organizational learning and knowledge transfer in general as well as for management research and practice in the African context.