New inter-organizational knowledge tie formation after firm relocation : investigating the impact of spatial, relational, and temporal context

Abstract

To what extent does the relocation of a firm affect the formation of new knowledge ties with new partners in a subsequent period? This study aims at answering this question. It assesses empirically to what extent the spatial and temporal context of relocation and the relational context of a focal firm affect new knowledge tie formation with new partners in the post-relocation phase. Based on a sample of 83 relocated firms operating in the sector of architecture and engineering consultancy in the Netherlands, the results show that both the number of continued knowledge ties of firms and the time passed after relocation hamper the formation of new knowledge ties. These findings point out that firms are well aware of their knowledge deficits and consequently act quickly to compensate for it after relocation. Therefore, policy makers should target to facilitate knowledge sharing practices particularly for small firms in the post-relocation period.