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Alliances are levers to achieve learning and competitiveness, however, with some unintended consequences – knowledge leakage. The present study examines how partner learning intent (PLI), trust, and contract completeness affect knowledge leakage in the Chinese construction industry. Data have been collected from 333 personnel of 22 construction firms of China and analysed through SPSS 23 and PROCESS Macro 3.1. Results show that PLI is positive, whereas trust and contract completeness are negatively related to knowledge leakage. However, the results don’t establish the moderation effect of trust and contract completeness on the relationship between PLI and knowledge leakage. This research study contributes to transaction cost economics theory by acknowledging PLI as a threat and the knowledge leakage as cost of transaction. To knowledge-based view this study reports the direct and negative effects of trust and contract completeness on focal firm’s knowledge leakage ultimately contributing to firms’ Knowledge Management.

From partners’ learning intent to knowledge leakage: the role of contract and trust