5. Discussion and conclusion
The RVB of rent creation explains performance differentials among firms on the grounds of their ability to possess and accumulate unique resources (Barney, 1989; Dierickx & Cool, 1989) through the interplay of resource-pickering and capability-building mechanisms (Makadok, 2001). This study investigates these issues in the richer context of related diversified firms in which these processes can be explored at a deeper level by looking at knowledge exchanges among their constituent business units (Tsai, 2001) and the corresponding knowledge role that they play within the internal corporate network (Gupta & Govindarajan, 2000). The results support the importance of division knowledge role as regards understanding division performance within related firms. Those business divisions with high knowledge outflows to the rest of the corporation have the advantages that a rich resource base is developed around the core competences of the corporation. On the contrary, those business divisions with low knowledge outflows to the rest of the corporation do not have a resource base on which to sustain their operations (Fig. 4).