Exploring the Role of Knowledge Transfer Effectiveness and Team Creative Performance Through the Lens of Team Absorptive Capacity

ABSTRACT In the era of globalization and digitalization, a firm's survival depends on sustained competitive advantages that drive organizational performance (OP). This study investigates the impact of Knowledge Transfer Effectiveness (KTE) on Team Creative Performance (TCP) and OP by assessing the mediating role of Team Absorptive Capacity (ACAP), encompassing acquisition, assimilation, transformation, and exploitation capacity. Additionally, the research explores the moderating role of Perceived Organizational Support (POS) for Creativity within this framework. Partial least squares structural equation modeling (PLS‐SEM) was employed to test 18 hypotheses based on primary data from 408 knowledge workers in Malaysian firms. Data was gathered from various organizations across knowledge‐intensive industries, including information and communication technology, finance, and education. The findings provide evidence that KTE significantly impacts Team ACAP. Higher team acquisition, transformation, and exploitation capacity lead to increased TCP and mediating KTE‐TCP link. However, team assimilation capacity does not influence TCP or act as a mediator. The results further uphold that greater TCP leads to superior OP. Notably, POS for Creativity was found not to moderate the link between Team ACAP and TCP. This study contributes to the literature on organizational learning (OL) and the resource‐based view (RBV) by examining the multi‐dimensional nature of ACAP at team level. The outcomes offer practical insights for strategic managers and practitioners to improve team‐level learning mechanisms and facilitate effective knowledge transfer to enhance competitiveness. Future longitudinal research and comparative studies between small and large firms could deepen the understanding of these dynamic relationships across different industrial and cultural contexts.