The Strength of Weak Ties You Can Trust: The Mediating Role of Trust in Effective Knowledge Transfer Daniel Z. Levin Rob Cross Management Science (2004) 2002 Lawrence Erlbaum Best Paper Award Weak Ties: A Story Cross gives an Academy talk on the types of advice people get, with a unique data-collection approach Levin—in audience—has been struggling to find a way to test an idea about knowledge transfer and trust from his own recent interviews with managers. Weak Ties + Trust Levin e-mails Cross with proposal: “Let’s use your approach to test my trust idea.” They exchange papers and offer comments, quickly building trust They begin a “virtual” collaboration What Can We Learn from This Story? • Useful knowledge can come from strangers (i.e., really weak ties) • You don’t need a strong tie to trust that someone will be benevolent and competent • Researchers need to separate out tie strength (structural) from trust (relational). Knowledge in Organizations • Knowledge creation and transfer are critical for organizations (Cohen & Levinthal 1990; Kogut & Zander 1992, 1996; Spender 1996; Argote 1999) • Knowledge is difficult to transfer, even within organizations (Zander & Kogut 1995; Szulanski 2000) • Knowledge transfer, when it occurs, is often based on interpersonal relationships (Pelz & Andrews 1968; Mintzberg 1973; Allen 1977; Cross 2001) Research Question: From Whom Do People Report Getting Useful Knowledge on Important Projects at Work? 3 Aspects of Knowledge Transfer Structural weak vs. strong ties Granovetter, Mayer et al., 1973 Tsai & 1995 Zaheer et al., Krackhardt, Ghoshal, 1998 1992 1998 Ghoshal et al., 1994 Hansen, 1999 Knowledge tacit vs. explicit Current Study Zand, 1972 Szulanski, 1996 Nonaka, 1994 Polanyi, 1966 Zander & Kogut, 1995 Relational trust Survey Methods • Two-stage, critical-incident, egocentric network survey • 127 respondents reported on 4 relationships (n=508), response rate=48% • Same results in three companies: U.S. drug co., Canadian oil & gas co., U.K. bank • Controls: formal structure; demographic similarity; receiver’s own expertise • Hierarchical linear modeling for nested data Factor Analysis Survey Item Benevolence Tie Trust Strength Competence Trust Look out for me Avoid damaging me Care about me .91 .87 .64 .08 -.05 -.17 .00 -.03 .16 Closeness Communication Interaction .05 .01 -.03 -.87 -.85 -.84 .05 -.04 .01 Professional/dedicated Competent/prepared -.05 .07 -.02 .03 .88 .75 Ruling Out Alternative Explanations X Nonwork-related Friendship X Availability of Knowledge Source X Formal Structure (function, level, project, proximity) X Demographic Similarity (age, gender) X Factors beyond Source’s Control (1) Strong Ties Are Useful… Tie Strength + Receipt of Useful Knowledge (1) Strong Ties Are Useful… …Because They Are Trusted + Tie Strength + Competence Trust + Benevolence Trust + Receipt of Useful Knowledge (2) Controlling for Trust, Weak Ties Are Actually More Useful + Tie Strength – + Competence Trust + Benevolence Trust + Receipt of Useful Knowledge (3) Interaction Effect for Tacitness Competence Is Critical For Tacit Knowledge + Tie Strength – + Competence Trust + Benevolence Trust + + Receipt of Useful Knowledge D.V.=Perceived Receipt of Useful Knowledge Variable Intercept, controls Eq.1 Eq.2 Eq.3 Eq.4 Eq.5 [controls not reported here •••] Tacit Knowledge -.23•••-.22•••-.16•••-.16•••-.16••• .21••• Tie Strength -.08•• -.08••• Benevolence Trust .20••• .22••• .22••• Competence Trust .23••• .23••• .22••• .05• Competence*Tacit R2 = .56 .57 .69 .70 .71 Contribution… • …to org. learning and knowledge lit.: Support for structural-relational-knowledge (SRK) perspective of knowledge transfer • …to social network lit.: Weak ties + trust are not only possible but maybe even desirable