Effectiveness and Efficiency of Cross-Border Knowledge Transfer: An Empirical Examination Liliana Pérez-Nordtvedt, Ben L. Kedia, Deepak K. Datta and Abdul A. Rasheed University of Texas at Arlington; University of Memphis; University of Texas at Arlington; University of Texas at Arlington  Based on a sample of 102 US organizations, this study examines the impact of knowledge characteristics, recipient learning intent, source attractiveness, and relationship quality on the effectiveness and efficiency of knowledge transfer from the international business affiliates of these organizations. Findings indicate that recipient learning intent and source attractiveness positively impact the effectiveness of knowledge transfer. In addition, recipient learning intent was found to have a positive effect on knowledge transfer efficiency. In particular, results highlight the strong positive impact that the quality of the relationship between the source and the recipient has on both the efficiency and effectiveness of cross-border knowledge transfer. The study also indicates that knowledge value is positively associated with recipient learning intent and that knowledge value, rarity and non- substitutability influence source attractiveness. Finally, findings suggest that the relationship between knowledge characteristics and knowledge transfer is partially mediated by recipient learning intent and source attractiveness. INTRODUCTION The role of knowledge as a critical organizational resource that leads to the development of capabilities and competitive advantage is being increasingly recognized in the man- agement literature (Bhagat et al., 2002; Teece et al., 1997). Organizational learning contributes to an increase in an organization’s stock of knowledge and very often it takes place via knowledge transfers from entities outside organizational boundaries (Argote and Ingram, 2000; Grant, 1996). Knowledge transfer has been found to affect key organizational outcomes, including competency-based/human-resource development and performance in joint ventures (Lyles and Salk, 1996; Tsang et al., 2004), ROE and sales growth in new ventures (Zahra et al., 2000), new product development in young technology firms ( Yli-Renko et al., 2001), and short-term new product financial Address for reprints: Liliana Pérez-Nordtvedt, Department of Management, The University of Texas at Arlington, Box 19467, 701 S. West Street, Suite 215, Arlington, TX 76019, USA (lnordtvedt@uta.edu). © Blackwell Publishing Ltd 2008. Published by Blackwell Publishing, 9600 Garsington Road, Oxford, OX4 2DQ, UK and 350 Main Street, Malden, MA 02148, USA. Journal of Management Studies 45:4 June 2008 0022-2380