This paper represents an empirical study of how geographic proximity influences the search advantage and the transfer problem of interfirm networks.
By using the data collected from 226 Chinese manufacturing firms, this study examines the proposed hypotheses.
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.
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.
