The paradox of expertise: How resource conservation dynamics shape knowledge sharing and innovative behavior among experienced external new hires

Organizations experience a performance paradox when recruiting experienced external new hires (EENHs), whose superior expertise cannot effectively generate the expected innovation. We draw on the conservation of resources theory to examine the associations among EENHs’ expected reciprocity, knowledge sharing, innovative behavior, and the moderating role of perceived overqualification. Analyses based on a time-lagged survey of 318 EENHs and 63 supervisors reveal an inverted U-shaped relationship between expected reciprocity and knowledge sharing, which is moderated by perceived overqualification. We contribute to knowledge transfer research by unraveling the non-linear expertise investment patterns among resource-rich employees and advance knowledge governance literature by demonstrating how perceived resource superiority requires tailored governance mechanisms. We offer managerial implications for organizations seeking to leverage external talent for innovation.