Knowledge workers in technology companies generally don’t view their jobs as being about human relationships. The more introverted among them would probably even shudder at the thought. Our research indicates, however, that science-based work is more about social networks than high-tech companies might suspect. In fact, it’s possible that these companies would benefit from the kind of intentional networking in which consulting and law firms engage.

Those insights emerged from a surprising result in our study about what happens when inventors leave their companies for jobs at other firms in their industry. It’s a given that such departures of human capital drain skills and knowledge from the companies that are left behind. But we discovered that under certain circumstances, those companies also stand to gain knowledge when people leave.

The loss of human capital is partially offset by a gain in social capital—specifically, the development of social ties between firms. An inventor’s move expands the old firm’s web of personal connections to include people at the new firm. In high-tech professions, as in most, old ties usually don’t disintegrate just because someone has changed jobs. People stay in touch, and they still talk shop. And more often than not, the desire to share knowledge trumps any tendency to hold it close to the vest.

Clear evidence of intellectual gains from an inventor’s departure shows up in patents, of which we studied about 42,000 issued to 154 firms in the semiconductor industry from 1985 through 1995. The official documentation allowed us to identify inventors’ locations and lists of all the previous patents that inventors were citing. Therefore, we were able to trace the transfer of knowledge from one company to another.

An inventor who switches companies obviously brings previously acquired knowledge to the new employer. We also found, though, that after an inventor moves to a new firm in a different region or country, subsequent patents from the inventor’s old firm are 36 percent more likely to cite patents granted to people at the inventor’s new firm than to cite patents granted to people at other comparable companies. In effect, the old firm gains knowledge from the new firm. However, this phenomenon is not evident for inventors who move within the same US metropolitan region or the same foreign country. That’s probably because in those circumstances, the old company and the new firm are likely to have other existing ties, such as shared customers, suppliers and acquaintances.

Consulting firms and law firms understand the value of social and intellectual networks, and many have created alumni programs that encourage former employees to stay in touch with the organization and with one another. High-tech companies might want to adopt that practice in order to systematically raise their knowledge workers’ awareness of the people—and, by extension, the work being done—at distant firms. Developing new social ties in that manner could help to improve the transfer of knowledge.               

(Lori Rosenkopf is an associate professor and Rafael A. Corredoira is a doctoral candidate at the Wharton School of the University of Pennsylvania in Philadelphia.)

Take the lead at your next review

The management literature is full of advice for those who want to deliver effective performance reviews. The usual mantra? Use review sessions to set clear expectations and goals but never forget to praise good work and to listen closely to employee concerns.

What you can gain when you lose good people

Knowledge workers in technology companies generally don’t view their jobs as being about human relationships. The more introverted among them would probably even shudder at the thought.

A call to Help

Choosing the less traveled path can lead to either great heartbreak or indescribable rewards. Luckily for Marilou Pantua-Juanito, VSO Bahaginan executive director, it is the latter which she continues to reap.

Winning: Collaboration is the mother of innovation

Q: When you read the history of the greatest products ever created, you find out that many times the innovator was ignored or ridiculed by his company along the way and even had to struggle against the wishes of management. Why does this happen? Shouldn’t managers at least be giving these people moral support?  Name Withheld, Livermore, California

Hand to Mouth

Maria Susana Espinoza wanted only two children. But it was not until after the birth of her fourth child in six years that she learned any details about birth control.

Rice shortage may mean more trouble for Arroyo

Myrna Lacdao used to eat two meals a day. Now she eats one, and gives the rest to her two grandchildren.

In the Shadow of Debt

Summary: The stagnation of the Philippine economy has now lasted over 25 years. Between 1990 and 2005, the Philippines’ average annual GDP growth rate was the lowest in Southeast Asia, being lower than even that of Laos, Cambodia and Myanmar.

Five ways to boost retention

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1. Provide room to grow. Nothing is more frustrating for an employee than discovering he is out of growth opportunities.

The tourism time bomb

International travel is no longer the exclusive province of the rich. Over the next several decades, hundreds of millions of new entrants to the middle class will want not only the things—but also the experiences—that money can buy.

Developing Markets

General Electric Co. (GE) is divesting consumer-finance businesses in the UK and Germany and selling its US corporate credit-card unit to concentrate on higher-margin areas and developing markets, GE Money’s chief executive said.

Mobile Entrepreneurs Nokia calls on entries for innovative contest

In a bid to boost the deployment of mobile technology to country’s entrepreneurs, Nokia pioneered in the Philippines with the recent launching of the first-ever Nokia Mobile Entrepreneur Awards aimed at recognizing small entrepreneurs who use mobile technology in their business.

Winning: Bureaucratic management done right

Q: What is the difference between a bureaucrat and an effective manager? Brian Napoli, Medina, New York

Engagement is the new reach

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Something had to give

More than anywhere else in Asia, the soaring price of rice has become a good-vs.-evil drama in the Philippines, one of the world’s largest importers of rice.  Traders who fiddle with the price of the nation’s all-important staple now face life in prison.

How Coca-Cola built strength on diversity

In 2000 The Coca-Cola Co. settled the largest racial-discrimination lawsuit in history. Filed on behalf of approximately 2,000 former and current US employees, it resulted in a $192.5-million settlement.

Making diversity a business advantage

Today, the smartest organizations in the world are recognizing that their diversity can be a source of competitive strength.

Ma’am President

SHE may not be conscious of it, but a lot of people believe Ma. Rosario Santos-Concio, popularly known as Charo, was destined to become a president of ABS-CBN Broadcasting Corp., the country’s largest media outfit.

Winning: Getting real with CEO candidates

Q: When interviewing candidates for a CEO position, what questions can you recommend that fall outside the usual routine? Neil Eckersley, Johannesburg, South Africa

Washington Post wins six Pulitzers

The Washington Post dominated the 92nd Pulitzer Prizes for journalism Monday, winning six, including the prestigious public service award for its series exposing substandard conditions at the Walter Reed Army Medical Center.

Pulitzer art awards embrace Bob Dylan, two other poets

How does it feel to share the limelight with rock legend Bob Dylan?

This year’s Pulitzer Prizes honored two musical innovators who tend to reject categorization: A special citation went to singer-songwriter Dylan, and the annual music award went to composer David Lang.

Team leader

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The best advice I ever got

As a child, I had loved science, to the point of performing my own experiments. While I wanted to study engineering, my parents—keen to see me join the professional ranks—convinced me that I should become a doctor, so after high school I started a two-year premed track.

DISTRIBUTION LESSONS FROM MOM AND POP

Latin America, dotted with millions of mom-and-pop stores, is a challenging market that sometimes forces global makers of groceries and sundries to rethink their distribution strategies. Lately, the region has also been serving as a classroom.

Revisiting Executive Privilege: CJ speaks

This concludes the Dissenting Opinion of Chief Justice Reynato Puno in the case of former Neda chief Romulo Neri against the Senate, which is expected to file a motion for reconsideration of the 9-6 ruling this week.

Revisiting Executive Privilege: CJ speaks

Second Installment of the Dissenting Opinion of Chief Justice Reynato Puno on the question of Executive Privilege raised by former Neda chief Romulo Neri against three Senate committees hearing the NBN-ZTE deal. The Senate is to submit on April 8 its motion for reconsideration of the 9-6 vote in Neri’s favor.

Revisiting Executive Privilege: CJ speaks

DISSENTING OPINION  

PUNO, C.J.:

THE giant question on the scope and use of executive privilege has cast a long shadow on the ongoing Senate inquiry regarding the alleged and attempted bribery of high government officials in the consummation of the National Broadband Network (NBN) Contract of the Philippine government.

Sweet, aromatic–and so Pinoy

THINK about it. The Philippines is proud to be known as the world’s top exporter of coconut (Coco s nucifera L.). For decades Juan de la Cruz dictated the world price, considering that we exported about 80 percent of our domestic yield.

Coconut everywhere!

THE coconut is a life-giving tree. And true to its word of giving life, its use extends to everything life can give.

Make numbers come alive

Understanding what numbers mean is a core competency for senior managers. Communicating what they mean should be, too. Yet few do this well. Rather than motivating and inspiring employees with the latest quarterly update or competitive analysis, leaders bore and confuse them instead. What causes the trip-up?

Five tips for better virtual meetings

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New Windows

SUBIC BAY—A wave is coming in 2008 and if software development giant Microsoft were to have its way, swimming gear would not be mandatory.

Cheers to success

When Pier One Bar and Grill first opened its doors in August 2000, many were intrigued by its unusual structure: seven used, sea-worthy shipping container vans stacked one on top of the other,

Winning: Growing pains and global change

Q: We’re a small software company—250 people—with a growing problem. After 20 years, some of our long-term employees, even though they work hard and hold important client and application knowledge,

Focused on No. 1

RAMON G. Arteficio’s basic traits as CEO are obvious the moment you meet this 59-year-old patriarch of one of the most successful companies in the country. He is humble, unassuming, amiable and honest.

Arroyo neglect, government infighting jeopardize RP’s territorial claim

Vera Files is put out by veteran journalists taking a deeper look into current issues. Vera is Latin for “true.”

360-degree mentoring

Fifteen years ago, the usual place to look for a mentor was several rungs up the organizational ladder. But today, with org charts flatter and expectations of managerial know-how greater, your ideal mentor may actually be a network of mentors that includes peers and even subordinates. Think of it as the 360-degree model of mentoring.