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The team members’ expertise has been shown to increase team effectiveness when it is actively coordinated. While in face-to-face teams such expertise coordination unfolds through direct interaction, expertise coordination in dispersed teams is unlikely to evolve automatically. In this context, shared leadership, that is, the distribution of leadership influence across multiple team members is argued to serve as initiating mechanism for expertise coordination.

Leadership is a crucial driver of project performance. While traditionally, the project leader was considered as the exclusive source of leadership behavior, recent research indicates that particularly dispersed projects may profit from joint leadership efforts by all project members. However, leadership functions in dispersed projects are likely to differ from those in a face-to-face context. In this chapter, we specify shared leadership functions for the domain of geographically dispersed project teams with high levels of task uncertainty. Arguing that shared leadership in dispersed teams occurs through interrelation of individual and team actions, we specify a dispersed screening function as well as self-, other-, and team-directed interrelation functions and develop propositions on how these functions are related to project performance. Furthermore, we point to motivational aspects of shared leadership and discuss the role of the vertical leader in developing and facilitating shared leadership.

Andreas Al-Laham has been holding the chair for strategic and international management at the University of Mannheim since September 2009. After his studies of economics and business administration at the Technical University of Dortmund he received his PhD (1996) and Habilitation (2000) degree at the same University, Faculty of Business Administration, Chair of Strategic and International Management. From 2000 to 2002 he worked as a visiting research scholar and visiting professor for strategic management and organizational theory at the J.L. Rotman School of Management, University of Toronto, Canada. Afterward he became professor of international management and business policy at the University of Stuttgart. In 2004 he took a professorship of strategic management at the CASS Business School, City University of London, UK. Up till today, he is visiting professor for General Management and International Strategy. Between 2006 and 2009 he held the chair for management and international strategy at the University of Kaiserslautern. He has written several books, for example! Strategisches Management. Theoretische Grundlagen-Prozesse-Implementierung (together with M. K. Welge), Organisationales Wissensmanagement. Vahlens Handbücher der Wirtschafts- und Sozialwissenschaft, Praxis des strategischen Managements (together with M. K. Welge and P. Kajüter) and Strategieprozesse in deutschen Unternehmungen. His current research focuses on evolutionary dynamics in the German biotech-industry, alliances and network dynamics as well as the internationalization of SME.

The aim of the paper is to identify the different directions of external knowledge search and to investigate their individual effect on performance at the firm level.

The empirical study is based on survey data gathered from two distinct informants of 248 large- and medium-sized high-tech manufacturing Spanish firms. In dealing with concerns on simultaneity and reverse causality, perceived time-lags among dependent and independent variables were introduced. Quantitative methods based on questionnaire answers were used.

Findings reveal six distinct external search patterns and indicate that, while market sources such as customers and competitors are positively associated with performance, knowledge acquired from general information sources, other firms beyond the core business and patents and databases have no significant effect. Moreover, knowledge obtained from science and technology organizations and from suppliers displays an inversed U-shaped effect on firm performance.

Conclusions can only be generalized to high-tech manufacturing firms from developed countries and, although well-established methodological procedures were followed, the nature of the study remains cross-sectional. Yet, an important implication emerges from this work: more openness to external knowledge is not always better. It is necessary to carefully evaluate the potential gains and pains of each type of partner and source.

This research provides guidance to managers about how to shape their companies’ inter-organizational networks, i.e. the specific external agents on which they should focus, as well as the efforts they should devote to each of these key partners.

By considering distinct directions of external knowledge search instead of a single dimension, the paper contributes to shed some more light to the mixed results reported by the scarce empirical studies that have investigated the effect of openness towards external knowledge on performance at the firm level.