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separated into internal and external dimensions, knowledge transfer is the process through<br />

which knowledge is transported from one place to another (Easterby-Smith, Lyles, & Sang,<br />

2008; Khamseh & Jolly, 2008).<br />

Internal knowledge transfer refers to how knowledge is diffused within the<br />

organisation and studies explore how knowledge is shared between and amongst employees<br />

and departments within a single organisation (Eisenhardt & Santos, 2002; Grant, 1996;<br />

Szulanski, 1996, 2000). In large organisations, researchers are concerned with knowledge<br />

sharing between different units (Szulanski, 1996). Given the purpose of this research is to<br />

explore inter-partner learning within alliances, this review will not elaborate on internal<br />

knowledge transfer issues, suffice to say here that internal knowledge transfer is an<br />

important dimension if external knowledge is to also be effective.<br />

2.4.1 External Knowledge Transfer<br />

Complementing the interest in internal knowledge transfer, there is a considerable<br />

literature investigating the external context (Easterby-Smith et al., 2008; Khamseh & Jolly,<br />

2008; Mowery, Oxley, & Silverman, 1996; Muthusamy & White, 2005; Walter, Lechner,<br />

& Kellermanns, 2007). External knowledge transfer refers to the transfer of knowledge<br />

across organisational boundaries (Eisenhardt & Santos, 2002). The net result of external<br />

knowledge transfer is that knowledge that was previously external to the organisation is<br />

now resident within the organisation. Dyer and Singh (1998) define inter-firm knowledge<br />

sharing routines “as a regular pattern of inter-firm interactions that permits the transfer,<br />

recombination, or creation of specialized knowledge” (p. 665). Inter-partner learning can be<br />

achieved by transferring existing knowledge from one organisation to another or creating<br />

15

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