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Purpose

The management of higher education institutions, like any other production system, must ensure efficiency and effectiveness in both the generation and application of knowledge. This paper investigates the negative effects of the four dimensions of knowledge waste – waste of explicit knowledge, retention of tacit knowledge, overspecialization, and underused talent – on the performance of research groups from higher education institutions.

Design/methodology/approach

The research model was evaluated using survey data collected from a sample of 211 research groups across public and private higher education institutions in an emerging country. Partial least squares structural equation modeling (PLS-SEM) was used to test the research model.

Findings

The findings indicate that the waste of explicit knowledge exerts a negative effect on the performance of research groups within higher education institutions. Retention of tacit knowledge and underutilization of talent show no significant influence on performance outcomes. Notably, overspecialization – contrary to theoretical expectations – contributes positively to performance.

Originality/value

This study advances the literature by shifting the focus from the measurement of knowledge waste to its organizational consequences for research group performance in higher education institutions. It theorizes knowledge waste as a critical mechanism through which value generated from knowledge creation may be dissipated. The findings challenge the prevailing assumption of uniformly negative effects by revealing heterogeneous impacts across its dimensions. Notably, overspecialization may yield context-dependent positive outcomes, calling for a reconceptualization of knowledge waste as a non-homogeneous construct within the broader literature on the dark side of knowledge dynamics.

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