Second, our study shows that the loss associated with leaking knowledge may outweigh the benefits of getting access to external knowledge. Firms and their executives should be aware that external knowledge sharing increases the risk of associated knowledge leaks, and thus, they should manage this risk carefully. This is especially relevant for firms that do not have substantial experience in external collaborations. For instance, firms can manage such issues by tightening and specifying contractual frameworks in collaborations, increasing awareness of employees in regard to the knowledge to be protected and of the detriments from knowledge leakage, arranging training programs and/or staffing inter-organizational collaboration projects in a way that reduces the potential for knowledge leakage.