How does contract completeness affect tacit knowledge acquisition?

Abstract

Purpose This study aims to empirically investigate the role of contracts in tacit knowledge acquisition in research and development (R&D) alliances. By combining the perspectives of sensemaking and transaction cost economics (TCE), this study proposes a model about the mechanisms through which shared goals and contract completeness jointly affect tacit knowledge acquisition. Design/methodology/approach This study adopted a quantitative design and used the questionnaire survey method to collect data. The authors finally collected data on 196 R&D alliance samples in China. Multiple regression analysis was used to test the hypotheses. Findings There is strong empirical support that contract completeness has a positive effect on shared goals and that shared goals have a positive effect on tacit knowledge acquisition. Meanwhile, contract completeness weakens the positive effect of shared goals on tacit knowledge acquisition. Therefore, this study reveals that contract completeness has an inverted U-shaped effect on tacit knowledge acquisition. Practical implications The findings suggest that managers should consider both the psychological and rational effects of contract governance simultaneously, thus recognizing the importance of a moderate level of contract completeness for tacit knowledge acquisition in R&D alliances. Originality/value This study enhances the current understanding of contract governance by integrating the sensemaking and TCE perspectives. The findings provide a possible explanation of how contracts affect tacit knowledge acquisition in R&D alliances. The authors expand the research on contract governance and alliance knowledge acquisition by revealing the inverted U-shaped relationship between contract governance and tacit knowledge acquisition.

Investor’s Learning Style and Knowledge Acquisition Dimension: The Role of ICT in Maximising Knowledge Acquisition

“…First, by referring to Feldman et al (2015) and Manolis et al (2013), the authors classified the learning styles into four types, followed by investment experience. Second, we investigate the dominance of assimilative and convergent learning types with two dimensions of knowledge acquisition; latent (tacit & material) and active (actor & kinetic), with the highest causality relationship value (Giampaoli et al, 2017;Thomas & Gupta, 2021;Wang et al, 2020). Therefore, if the first and second stages are proven valid, these results indicate the robustness of the relationship between either unsophisticated or sophisticated investors and knowledge acquisition dimensions constructed in this study.…”

“…Questionnaire Items I can learn optimally through repeated experiments and practice I can learn optimally, if by trying it directly When studying, I like to do it by observing When learning, I like to do it by being directly involved Tacit Knowledge Acquisition; Thomas and Gupta (2021); Wang et al (2020) have found an investment method that fits my desired risk profile I've found the right combination of portfolio diversification I have found the most optimal investment analysis technique for me Material Knowledge Acquisition; Park and Moon (2003); Rachmawati and Suroso (2020)…”

Autonomous Heavy-Duty Mobile Machinery: A Multidisciplinary Collaborative Challenge

“…Thus, the boundaries of the firms may have to change not only with reference to TCE contractual issues [26] but also by developing dynamic capabilities [18,26]. Furthermore, the effect of contracts on tacit knowledge acquisition is limited [22], and considering bounded rationality [16], it's important for organizations to stimulate different perspectives to coding by including data scientists, business managers, and engineers [5], to develop the right autonomous/AI capabilities [26,29]. Such capabilities may be developed by hiring new talent or training existing talent with the right competencies [7], incurring additional training costs.…”

“…Such collaborations may bring about a change in the firm boundaries due to the need for new transactions outside the firm. Typically, interorganizational collaborations are initiated through formal contracts and collaboration agreements for sense-making and the development of shared goals among the collaborators [22]. However, such agreements may inadequately capture all the conditions for effective collaboration [17], due to bounded rationality and focus of TCE on individual transactions [21,23].…”

Tacit knowledge in organizations: bibliometrics and a framework-based systematic review of antecedents, outcomes, theories, methods and future directions

“…As per Garrick and Chan (2017), problems are experienced in transferring TK, although employee know-how is important for the performance of an organization and authenticating the applicability of knowledge in knowledge management. Wang et al (2020) suggested that research and development (R&D) alliances need to be managed by the organizations for obtaining TK in an agreement. They concluded that a complete contract positively impacts shared goals and, in turn, shared goals positively affect the acquisition of TK.…”