Guarding Against the Erosion of Competitive Advantage: A Knowledge Leakage Mitigation Model

A critical objective of knowledge-intensive organizations is to prevent erosion of their competitive knowledge base through leakage. Our review of the literature highlights the need for a more refined conceptualization of perceived leakage risk. We propose a Knowledge Leakage Mitigation (KLM) model to explain the incongruity between perceived high-risk of leakage and lack of protective actions. We argue that an organization’s perceived risk of leakage increases if competitors can benefit from leakage incidents. Further, perceived leakage risk decreases if the organization is shielded from impact due to their diversity of knowledge assets and their ability to reconfigure knowledge resources to refresh their competitive knowledge base. We describe our approach to the design of a large-scale survey instrument that has been tested and refined in two stakeholder communities: 1) knowledge managers responsible for organizational strategy, and 2) Information security management consultants.