Knowledge sharing, knowledge leaking and relative innovation performance: An empirical study

External knowledge sharing and knowledge leakage often pose a strategic dilemma when firms conduct innovation activities. In this study, we focus on the positive and negative effects of this phenomenon. In particular, we empirically examine the effects of a firm׳s external knowledge sharing on its relative innovation performance under the contingencies of accidental and intentional leakage of business-critical knowledge. Results based on a survey of 150 Finnish technology-intensive firms show that external knowledge sharing has a positive effect on innovation performance, but high levels of accidental and intentional knowledge leakage by a firm׳s employees negatively moderate this relationship. These results contribute to the understanding of the potentially positive and negative issues related to external knowledge sharing and knowledge leakage, which have thus far remained empirically under-researched.