The knowledge-based view provides a powerful perspective for analyzing and understanding the ?rm. However, some of its assumptions have proven dif?cult to operationalize, making hypothesis testing dif?cult. One strategically important assumption is that ?rm competitive advantage depends on effective integrating processes. This paper develops a more precise speci?cation of “effective” integrating processes. Then, two integrating processes are modeled using an agent-based simulation approach to test a set of factors believed to in?uence knowledge transfer and application. Results support several hypotheses generated by the knowledge-based view including: (1) greater level soft acit knowledge transfer enhance the performance bene?ts gained from integrating processes, and (2) integrating processes with greater task uncertainty bene?t from more formalin formation communication. The results also suggest that the design and management of ?rm integrating processes is a complex undertaking that requires a clear understanding of (1) the primary performance measure(s) used to evaluate the process, (2) the nature of the process tasks (e.g., routine vs. idiosyncratic), and (3) the knowledge required to perform those tasks ( e.g., explicit vs. tacit). |