Developing Shared Knowledge in Growing Firms
Journal of Law, Economics, and Organization, 2017, vol. 33, issue 2, 332-376
I develop a theory of knowledge sharing in organizations where coordinated activity requires shared knowledge, and knowledge sharing is local and costly. Because knowledge sharing is local, knowledge diffuses gradually across an organization. Because knowledge sharing is costly, diffusion may stall, resulting in inefficiently fragmented knowledge. The theory suggests that excessively rapid organizational growth may result in fragmentation or in the abandonment of the organization’s early knowledge, and that these effects may persist in the long-run, even after the initial period of growth has ended. To avoid fragmentation, highly productive firms should deliberately constrain firm growth and avoid acquisition-based growth strategies. (JEL D21, D83, C73, J24)
JEL-codes: C73 D21 D83 J24 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:oup:jleorg:v:33:y:2017:i:2:p:332-376.
Ordering information: This journal article can be ordered from
Access Statistics for this article
Journal of Law, Economics, and Organization is currently edited by Pablo T. Spiller
More articles in Journal of Law, Economics, and Organization from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press () and Christopher F. Baum ().