Introduction

The performance of a firm is influenced by its utilization and accumulation of intellectual resources. Coase (1937), Demsetz (1967), Knight (1921), Stigler (1961), and, more recently, Baumol (2002) and Loasby (1999) have argued that the firm exists to organize the utilization of knowledge. Firm performance is realized through innovation or the entrepreneurial use of knowledge. This leads to an emphasis on the management of intellectual resources including non-codified knowledge within the firm. The intrafirm flow of knowledge is a means to gain efficiency and to innovate. Though many firms have adopted policies to encourage the collection, storage, and dissemination of codified knowledge that resides within the firm, what is less certain is how to foster the exchange of knowledge that resides in individuals. One item that may facilitate or retard the voluntary sharing of non-codified knowledge is the possible receiver’s reputation. The decision to provide another with assistance is based in part upon the signal that his/her reputation sends. That is, the person holding knowledge (the source) renders a decision to provide or not provide the requested knowledge based on an estimate of the past behavior and anticipated future actions of the would-be receiver (the recipient). Through this process, reputation affects the decision to share or not share personal scientific know-how.