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Purpose The purpose of this paper is to examine knowledge sharing with external partners within the China context, demonstrating that paternalistic leadership combined with the resulting reciprocal relations between leaders and employees are accountable for knowledge transfer with external partners based on social exchange. Design/methodology/approach This study collected data at two time-points and obtained 391 usable observations for hypothesis testing using questionnaire surveys administered to the managers of major Chinese companies. Findings Empirical analysis of employees at major Chinese firms shows that paternalistic leadership may encourage perceived reciprocal support from employees that results in smooth knowledge sharing with outsiders in the form of voluntary helping behaviors. Originality/value This study expects that both scholars and practitioners will gain answers on how to best encourage employees into contributing toward relationships with external stakeholders within the China context. One valuable point in this study is demonstrating that Chinese firms’ benevolent leadership promotes human relationships and thereby long-term relationships with alliance partners, while their moral leadership promotes ethical trust between alliance partners. These factors may accordingly further increase knowledge sharing opportunities with external partners.

Purpose – The purpose of this paper is to investigate the relationship between corporate venture capital (CVC) investment and the level of knowledge transferred from start-ups to corporate investors. It also delineates the conditions under which CVC investment facilitates the knowledge transfer. Design/methodology/approach – A longitudinal design is used to examine annual snapshots of CVC investment and patent citing activities for the period from 1995 to 2005. This paper uses a negative binomial Poisson regression model to test proposed research hypotheses. Findings – The authors found that that there is an inverted U-shaped relationship between the number of CVC investments and the level of knowledge transferred from the start-up. The results of this study also found that knowledge diversity of the investing firm moderates the inverted U-shaped relationship. Originality/value – This research contributes to the search literature by conceptualizing CVC investment as a distant search process for sourcing external knowledge from start-ups. By arguing theoretically and demonstrating empirically the effects of tie strength of CVC structure and technological knowledge diversity on organizational knowledge transfer, this current study extends the previous understanding and applicability of social relations and technological diversity to understand CVC activity.