ABSTRACT
Knowledge held by firms is a driver of firm performance and value. Knowledge protection mechanisms seek to protect this value by imposing restrictions on employees, leading to concerns about the balance between firm interests and employee rights. While past research has investigated this balance, the pivotal role of knowledge value has largely been overlooked. To fill this gap, this paper examines the role of knowledge value in the balance between firm interests and employee rights. This work investigates how valuation uncertainty influences the relationship between knowledge value and restrictions. It does so based on a mixed-methods analysis of novel data examining legal disputes related to knowledge leakage. This is the first paper of its kind to use criminal knowledge leakage data. While the analysis confirms a positive link between knowledge value and employee restrictions, it finds that uncertainty moderates the impact of value on restrictions and undermines the value-based justification of restrictions. This finding offers an important insight for theory as the moderation effect shifts the balance between the competing interests of firms and employees.
Searle, Nicola, Uncertainty in Knowledge Value and Employee Restrictions (July 8, 2024).
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