Territorial dynamics and perceived overqualification: implications for knowledge hiding and innovation

Purpose While perceived overqualification (POQ) is often viewed as a catalyst for innovation due to the surplus of knowledge, skills and abilities (KSA) it brings, it can also trigger territoriality and negative socio-dynamic processes that impede effective knowledge flow and innovation. Accordingly, the purpose of this study is to address the following research question: What mechanisms explain how status-relevant knowledge behaviors link POQ to innovative performance? Design/methodology/approach Drawing on territorial theory, the authors examine how POQ affects employees’ innovative performance through territorial thinking (perceived threat to peers) and territorial behavior (knowledge hiding). They also propose that status conflict functions as a key contextual factor that strengthens these processes. To test the model, the authors used a quantitative design and conducted a multisource, two-wave survey with 263 employees nested within 80 groups. They then tested the hypotheses using structural equation modeling. Findings The results show that POQ is positively associated with perceived threats to peers. This drives knowledge-hiding behaviors, which undermines innovative performance. In addition, high status conflict within the workgroup exacerbates the negative effects of POQ on innovation by amplifying threat perceptions and knowledge-hiding behaviors. Originality/value This study offers a novel territorial perspective on why POQ may hinder, rather than enhance, innovation. By uncovering territoriality-driven mechanisms, this study clarifies how surplus KSA can undermine knowledge flow, and in turn, innovative performance.