Sustaining the competitive edge: rationalized knowledge hiding and the protective power of intellectual property

Purpose The knowledge-sharing process helps innovation simultaneously as open transparency poses the risk of disclosing essential proprietary information. Existing research overlooks the strategic value of rationalized knowledge hiding in sustaining competitive advantage. The research establishes how rationalized knowledge hiding defends resources alongside informal intellectual property practices while studying knowledge management within competitive settings. Drawing on the conservation of resources theory, this study investigates the impact of rationalized knowledge hiding on sustainable competitive advantage. Besides, the mediating role of informal intellectual property protection practices in the said relationship. Design/methodology/approach This study collected data from 545 employees working in information technology firms with two time lags to minimize bias related to common methods and evaluate the developed theoretical model using Partial Least Squares Structural Equation Modeling. SmartPLS 4 was used to analyze the complex mediation pathways and check the theoretical model’s robustness. Findings The findings reveal that rationalized knowledge hiding has a significant positive impact on sustainable competitive advantage. When strategically managed, rationalized knowledge hiding can contribute to sustainable competitive advantage. Informal intellectual property protection practices partially mediate this relationship. Practical implications Informal intellectual property protection practices, such as job rotation, four-eyes check, cultural values and trust, play a vital mediating role in this relationship. Organizations should understand the strategic value of rationalized knowledge hiding and foster a culture that supports informal intellectual property protection mechanisms. Originality/value This study extends the conservation of resources theory to the organizational context. It provides valuable insights for supervisors in information technology firms and signifies that a sensible approach to knowledge management, including sharing and hiding strategies, can increase competitive advantage.