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Abstract Drawing from the structural perspective of social capital theory, this research investigates how internal and external advice network structures influence knowledge overlap and variety and, how these knowledge dimensions in turn influence group effectiveness. Findings from two studies on knowledge‐intensive groups indicate that different advice network structures are associated with knowledge overlap and knowledge variety, and only knowledge variety was significantly associated with group effectiveness. In addition, despite implicit understanding that advice networks aid performance through enhancing knowledge outcomes, only knowledge variety was found to mediate the relationship between external network and group effectiveness. Implications for theory and practice are discussed. Copyright © 2007 John Wiley & Sons, Ltd.
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