The open innovation model often neglects the frictions that external knowledge flows could encounter\r\nwhen crossing organisational boundaries. This study recognises such barriers and investigates the\r\nimpact of these barriers on knowledge transfer effectiveness by using data on small new technologybased\r\nfirms (NTBFs) located in the emerging South African economy. The empirical results show that\r\nthe characteristics of inter-organisational knowledge exchange relationships (organisational and\r\ntechnological similarity and contact frequency) do have an impact on the effectiveness of knowledge\r\ntransfer. The findings stress the relevance of a relational approach, as factors derived from it act as\r\nbarriers to effective knowledge transfer for small firms.
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