Interfirm networks and search-transfer problem : the role of geographic proximity

Purpose: This paper represents an empirical study of how geographic proximity influences the search advantage and the transfer problem of interfirm networks. Design/methodology/approach: By using the data collected from 226 Chinese manufacturing firms, this study examines the proposed hypotheses. Findings: The authors’ findings suggest that (1) geographic proximity is an important antecedent for promoting knowledge transfer, whereas it lowers the degree of knowledge novelty; and (2) geographic proximity also moderates the effects of interfirm networks on knowledge novelty and knowledge transfer. Originality/value: This study contributes the literature of interfirm network and provides practical implications by addressing the ways in which manufacturing firms can promote knowledge transfer and acquire novel knowledge.