Our paper investigates the intricate dynamics of knowledge utilization within organizations, shifting focus from mere accumulation to individual members’ active interpretation of knowledge. Drawing on common ground theory, which underscores the importance of shared beliefs and understanding within groups, our study examines how the retention rate within top management teams (TMTs) influences the formation of common ground and impacts knowledge utilization. We hypothesize a nuanced relationship between TMT retention rate and experiential learning, with a moderate retention rate weakening organizational learning from past experiences. We further hypothesize that this effect is amplified when team faultlines are strong. Empirical evidence from 1,866 acquisition deals by S&P 1500 firms supports our hypotheses, underscoring the significance of fostering common ground to mitigate conflicts arising from diverse knowledge and to enhance collaboration for effective knowledge interpretation within teams.
