Abstract
This paper endeavors to enrich the existing knowledge acquisition literatures by specifically highlighting downsides of external ties of individuals. We introduce the concept of reverse knowledge diffusion (RKD) through external ties of individuals, and develop theoretical propositions to explain how the risks of RKD vary based on competitive dynamics and status of firms as innovation market leaders or market followers. We develop the construct of RKD to help explain why rivals may pursue contrasting knowledge seeking strategies with regards to leverage external ties of individuals, the timing of establishing these ties, and ex ante control mechanisms designed to regulate these relationships. We also discuss how our propositions advance the theory of knowledge seeking behaviors and generate future research opportunities.
