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This paper aims to provide a comprehensive academic literature review on the relationship between knowledge management, knowledge transfer and organizational performance in a specific subset of the creative industry, i.e. arts and crafts organizations. Furthermore, this paper analyzes how knowledge management and transfer within arts and crafts organizations help increase performance and enhance the value of the activity of the so-called “knowledge workers” (i.e. craftsmen), who are the real knowledge owners in the process of value creation.

The literature review follows the model suggested by Vom Brocke et al. (2009). The review follows a five-phase approach so as to be systematic, transparent and replicable. Academic contributions published over two periods are taken into consideration. The first period covers the years 1990-2000, when the concepts of creative industry and knowledge-based economy were developed. The second period covers the years 2000-2016, when scholars started to investigate how to effectively transfer knowledge (very often in the form of “tacit knowledge”) retained by master craftsmen in arts and crafts organizations and the critical role played by craftsmen in the performance of such organizations.

Three main issues have emerged: how arts and crafts organizations manage and transfer knowledge internally; the effects of these activities on organizational performance; and the prominent role of craftsmen. The literature review shows how in arts and crafts organizations there is a considerable link between the concepts of “performance" and "tacit knowledge", even though addressing such link is somehow hard to realize, for several reasons discussed in the paper. The measurement of performance in arts and crafts organizations has become an area of academic investigation only when both the role of knowledge management and transfer and the role of knowledge workers (i.e., craftsmen) have become evident for obtaining a competitive advantage.

This paper has been an attempt to organize existing studies on knowledge management and transfer and to investigate the relationship existing between knowledge and performance in arts and crafts organizations. Nevertheless, the relationship between knowledge and performance is yet to be explored, as well as the development of techniques for measuring arts and crafts organizations’ performance effectively. The present contribution calls for a systematic reflection on how the transfer of traditional craftsmen’s skills impacts organizational performances in the long run. The definition and implementation of new performance evaluations criteria tailored to enhance the tacit knowledge of craftsmen as a real source of differentiation and competitive advantage for the arts and crafts organizations is somehow still missing.

By pursuing its objectives, the present contribution aims to represent a step toward enabling arts and crafts organizations to play a vital role in the modern society in a more structured way. This would help to build awareness of the potential of arts and crafts organizations for promoting economic growth, proposing a value proposition different from the one dictated by the globalization and by the triumph of product standardization and mass production.

Analyzing the knowledge management and transfer within arts and crafts organizations with a historical perspective, it appears that the recognition in academic literature of the centrality of knowledge management and transfer within arts and crafts organizations is only recent (i.e. from 2011 onward). Indeed, for approximately 20 years (i.e. 1990-2010), knowledge has been constantly related to technological paradigms and standardized results, with very little research and debate on craftsmanship and the role of craftsmen. Nevertheless, the research shows that over the years, the focus on knowledge in arts and crafts organizations and knowledge transfer has become progressively more detailed and precise: some authors have studied the role of craftsmen in the knowledge economy according to a historical perspective, while some others have analyzed different types of knowledge more thoroughly. For example, Sveiby (1997, 1996), analyzing the concept of "knowing talent" and "tradition", outlines a more prominent role of craftsmen in the knowledge economy and explain how, in sectors with a strong traditional background, the transfer of tacit knowledge is a meaningful challenge for many organizations.

This paper aims to analyse and discuss five longitudinal case studies in which the authors have investigated how, in a specific subset of the creative industry, i.e. the arts and crafts organizations, knowledge can be systematized and transferred, becoming a real source of competitive advantage.

As no prior empirical research on the relationship among knowledge, knowledge transfer the role of craftsmen is available, an exploratory, qualitative research design seems advisable to study the phenomenon in detail. In setting up a multiple case study, the authors established a sampling frame of criteria associated with the theoretical background and research interest of this study: the case firms had to be arts and crafts organizations well-known for the high quality and value of their artifacts and have a solid reputation for preserving the tradition and the uniqueness of their manufacturing processes.

It has emerged the importance of craftsmen within arts and crafts organizations, whose know-how and technical skills are high valued by colleagues, by the market (customers), within the society and the territory where they operate. The knowledge acquired and retained by the craftsmen becomes therefore crucial for the survival of the arts and crafts organizations and for their profitability in the long term.

From the empirical investigation, it has emerged a certain unawareness at managerial level of the strategic relevance of the craftsmen knowhow and skills and of how to practically and effectively transfer their knowledge to a future generation of young craftsmen to continue to satisfy a unique and exclusive market demand. Furthermore, it has emerged the lack of a common knowledge transfer policy to different organizations. Therefore, it has not been possible to define a standard framework for the knowledge transfer process because it is influenced by the organizational structure, the management style of the organization owner (very often a family that retains the totality of the organization shares/quota), the social context and the territory where the organization is located, as well as the target market and the specific niche of customers who buy the organization’s products. This result represents a potential threat for the survival of arts and crafts organizations in the long run.

A common result that has emerged is that craftsmen play a crucial role for the success of arts and crafts organizations, through the creation and production of exclusive, high value products; hence, it is crucial to preserve and transfer properly their knowhow and skills. This result is particularly relevant for the world of practice: in a time where globalization demands for the relocation of production processes and technology automates several job tasks, the variegated world of arts and crafts, where the handmade abilities and skills of craftsmen cannot be replicate, imitate or standardize, becomes extremely important for the economy of several countries, among which Italy.

At social level, the activity of arts and crafts organizations help preserve the uniqueness and exclusivity of the heritage and culture of the territory where they are located, and reflect the tradition of such territory, the knowhow and ability of its inhabitants and help preserve this unique reservoir of competences and knowhow.

The contribution builds on the lack of practical understanding of the relationship between knowledge and the role played by craftsmen in the knowledge transfer process within arts and crafts organizations, and how effective such process is realized. This because despite the interest of many authors toward both knowledge management and transfer within the creative industry, there is a lack of studies aimed at linking systematically these two research areas. This is a relevant issue since knowledge in creative industries mainly refers to the traditions and values at the basis of an organization’s culture, tends to manifest itself in a tacit way and is difficult to analyze because it mainly exists in the mind of individuals as the result of their working experience not expressed in an explicit form.

Worker cooperative practitioners and developers often claim that democratic worker ownership advances egalitarianism within and beyond the workplace, but most of the empirical evidence in the USA is based on ethnographic case studies or small-scale surveys. This study aims to leverage the first national survey about individuals' experiences in these unique firms to test for the presence of inequalities by gender, race and immigration status in the broader sector.

The study uses a 2017 survey comprising a sample of 1,147 workers from 82 firms. This study focuses on measures of workplace benefits that capture material and psychological ownership, wealth accumulation, wages, workplace autonomy and participation in governance. This study uses ordinary least squares regression models with fixed effects alongside pooled models to determine the effects of gender, race, immigration status and the intersection of gender and race on these outcomes, both within and between firms.

This study finds no evidence of wage gaps by gender, race or immigration status within worker cooperatives, with job type, tenure and worker ownership status instead explaining within-firm variation in pay. Still, this study documents sector-wide disparities in material and non-material outcomes by gender, race and immigration status, reflecting differences in individual-level human capital and job characteristics as well as widespread occupational segregation and homophily.

The paper offers a novel contribution to the literature on workplace empowerment and inequality in participatory firms by analyzing race, gender and immigration status in the most robust dataset that has been collected on worker cooperatives in the USA.