The ability to transfer knowledge effectively in the networks of small and medium-sized
enterprises (SMEs) is paramount for supporting firms’ competitiveness. The present research
takes a qualitative approach, employing a theory-informed multiple-case study of six Italian
networks of SMEs. The paper analyses the joint impact of two different ethically based
trustworthiness factors – namely benevolence and integrity – and the levers of control (LOCs) –
namely, belief, boundary, diagnostic and interactive LOCs – on the knowledge transfer between
SMEs in networks. We find that trust and control can be antithetical or synergistic in supporting
inter-firm knowledge transfer in networks – depending on the interaction partners’ level of
ethical reasoning. We also pinpoint contextual conditions for the identified effects. These
insights not only provide a rich foundation for follow-up research, but also inform SME
managers about how to increase the effectiveness and efficiency of knowledge transfer with their
network partners.
