External knowledge acquisition and innovation output: an analysis of the moderating effect of internal knowledge transfer

Numerous studies highlight the advantages of accessing knowledge from outside the firm as a means of enhancing the firm's innovation efforts. However, access to external knowledge is not without organisational problems, including rejection of external knowledge by firm members or difficulties in applying such knowledge to the firm's operations. Based on the knowledge management literature, this paper analyses the conditions within the firm that favour external knowledge acquisition, and focuses on internal transfer as a key variable for the successful integration of external knowledge in the innovation process. Our results demonstrate that internal knowledge transfer intensifies the influence of external knowledge acquisition on innovation output. Specifically, achieving an environment within the firm that favours knowledge integration into the innovation process depends to a large extent on the willingness of knowledge users to share and assimilate knowledge, and on the existence of formal mechanisms such as coordination and communication.