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ABSTRACT The existing empirical evidence indicates that the relationship between knowledge transfer and performance presents mixed results and that it is not conclusive, thus it is necessary to understand the underlying mechanisms that could explain why many SMEs that transfer external knowledge fail to take advantage of this knowledge to improve their performance. Therefore, this study aims to analyze the role of absorption capacity （AC） and organizational learning capability （OLC） in the relationship between knowledge transfer （KT） and performance （P） at SMEs in emerging countries, a context in which there is little empirical evidence. The data analysis was performed using structural equations. The results confirm that the relationship between KT and P is not significant and that AC and OLC play a mediating role in the relationship between KT and P. Based on these results, SME managers that transfer knowledge should develop absorption and learning capabilities to achieve superior performance.
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