During the 21st century, the capability of best practice transfer will be a core competency of firms and a source of competitive advantage. This study reviews the practices of semiconductor firms and presents three models for the intrafirm transfer of best practices. These models have important implications for technology and knowledge management. First, replication strategies can apply not only to the service sector but also to manufacturing, including high-tech firms. Second, these transfer models validate the contingency theory since various situations induce different transfer models. Third, external benchmarking may not always be the best way to solve problems and maintain competitive advantage. The resource-based theory maintains that firms can retain a competitive edge by efficiently and effectively applying practices developed in-house.
Keywords: resource-based view, knowledge management, benchmarking, knowledge transfer, replication strategy, Copy Exactly, CE, Smart Copy, SC, best practice