The effect of contextual business attributes on the transfer of tacit knowledge in family firms

Abstract

The research paper investigated contemporary issues in the knowledge transfer landscape within family businesses. The paper set out to determine the influence of contextual business factors on the transfer of tacit knowledge dimensions; namely idiosyncratic, subject-related and network-related tacit knowledge. A case study methodology was adopted due to the early stage nature of the study from a literary perspective. Three South African family businesses were investigated across multiple generations. It is argued that the stability of business operations influence the focus of family business management, resulting in learning environments that are naturally inclined toward specific tacit knowledge transfer environments. A model is proposed that highlights the propensity toward tacit knowledge dimensions based on the stability of the business environment. The findings show that within a stable business environment, management focus primarily lay on core business operations hence a subject-related and network-related tacit knowledge transfer environment is created. Alternately, in a turbulent business environment, management focus is centred on strategic management issues, resulting in an idiosyncratic tacit knowledge transfer environment, hence learning emphasis.