Knowledge transfer from european multinational corporations to their subsidiaries in China: contextual perspectives and expatriate's roles

JEL classification: F2, M1This study aims to explore the factors impeding the knowledge transfer from European multinational corporations’ (MNC) headquarters to their subsidiaries in China. And the roles that the expatriates play in the process of knowledge transfer are also examined. A quantitative research method is adopted in this study. We collected 67 questionnaires in total responded by the European expatriates in China. The results indicate that the expatriates actively participate in a wide range of knowledge transfer areas and that seven factors related to various contexts are identified by the expatriates as the primary causes of the difficulties in the process of knowledge transfer. The analysis of the results, which is related to the overall contexts in China, is also presented. We conclude the study with the limitations and suggestions for future research.Esta tese investiga os fatores que impedem a transferência de conhecimento das sedes das Empresas Multinacionais Europeias (EME) para as suas subsidiárias chinesas. Investiga também o papel que os expatriados desempenham no processo de transferência de conhecimento. Esta investigação utilizou um método de pesquisa quantitativo. Foram recolhidos 67 questionários preenchidos por expatriados europeus. Os resultados indicam que os expatriados participam ativamente em várias áreas de transferência do conhecimento. Os expatriados identificaram sete fatores relacionados com vários contextos como causas primárias das dificuldades do processo de transferência de conhecimento. A tese apresenta a análise de resultados relacionando com o contexto geral da China. Concluímos com as limitações e sugestões para investigação futura

Transferências internas de conhecimento em empresas multinacionais: uma revisão sistemática da literatura

In the current marketplace, characterised by globalisation, proliferation of technology and hostile competition, the exploitation and management of internal knowledge in companies has become the best vehicle for ensuring a differentiated international positioning, developing organisational knowledge bases, improving performance and growth, as well as to increase market responsiveness. Multinational companies face even more challenges in these processes, since they have to manage multiple knowledge transfers between headquarters and subsidiaries, among subsidiaries, and also within each of these units, in very different cultural, geographic and economic scenarios. Therefore, the aim of this dissertation is to deepen the knowledge about this phenomenon and to uncover the main influencing factors on internal knowledge transfers in multinational companies. Apart from including intra-unit knowledge transfers, this dissertation also analyses transfers between units, namely conventional, horizontal and reverse knowledge transfers. For this purpose, a systematic review of the literature was conducted to synthesise the content of 72 articles. Conclusions were drawn regarding the most recurrent publication years and sources, theoretical foundations, research methods, countries and industries in the literature. Moreover, this dissertation allowed to summarise the results for each type of knowledge transfer, identifying eight thematic categories and 97 topics covered in the literature, thus creating a complete framework of this phenomenon. Some gaps in the literature and contributions to theory, research and management are also highlighted, which will help to advance knowledge in these fields.Nos mercados atuais — marcados pela globalização, pela proliferação da tecnologia e pela competitividade agressiva — a exploração e gestão do conhecimento interno das empresas tornou-se o melhor veículo para assegurar um posicionamento internacional diferenciador, desenvolver a base de conhecimento organizacional, incrementar o desempenho e crescimento das empresas, bem como para aumentar a capacidade de resposta às necessidades dos mercados. As empresas multinacionais atravessam ainda mais desafios na gestão destes processos, pois têm de gerir múltiplas transferências de conhecimento entre sede e subsidiárias, entre subsidiárias e também dentro de cada uma destas unidades organizacionais, em cenários culturais, geográficos e económicos muito distintos. Assim, o objetivo desta dissertação é aprofundar o conhecimento sobre o fenómeno descrito e determinar os principais fatores que influenciam as transferências internas de conhecimento em empresas multinacionais, englobando transferências dentro de uma unidade e transferências entre unidades — incluindo transferências convencionais, horizontais e reversas. Para esse fim, é adotado um método de revisão sistemática da literatura para sintetizar o conteúdo de 72 artigos. Foram tiradas conclusões sobre os anos, as revistas científicas, as bases teóricas, os métodos de investigação, as indústrias e os países mais explorados na literatura. Para além disso, esta dissertação permitiu sumariar os resultados para cada tipo de transferência, identificar oito categorias temáticas e 97 tópicos abordados, criando, assim, um esquema completo sobre este fenómeno. Por fim, são destacadas algumas lacunas na literatura e contribuições para a teoria, a investigação e a gestão, que ajudarão a progressão do conhecimento nestas áreas.Mestrado em Gestã

The MNC as a Knowledge Structure The Roles of Knowledge Sources and Organizational Instruments in MNC Knowledge Management

Recent research on the differentiated MNC has concerned knowledge flows between MNC units. While linking up with this literature, we extend in two directions. First, we argue that conceptualizing the MNC as a knowledge structure furthers the understanding of intra-MNC knowledge flows. Thus, we see MNC knowledge elements as being structured along such dimensions as their type and degree of complementarity to other knowledge elements, and their sources, for example, whether they are mainly developed from external or internal knowledge sources. These dimensions matter in terms of knowledge flows, because they influence the costs and benefits of knowledge transfer and, hence, the actual level of knowledge transferred. Second, based on this conceptualization, we argue that MNC management can influence the development, characteristics and transfer of knowledge through choices regarding organizational instruments (control, motivation and context). We test six hypotheses derived from these arguments against a unique dataset on subsidiary knowledge development. The dataset includes information on organizational instruments, sources of subsidiary knowledge, and the extent of knowledge transfer to other MNC units. It covers more than 2,000 subsidiaries located in seven different European countries.Knowledge structure, complementarity, knowledge transfer, the MNC

Comparative analysis of knowledge transfer barriers from headquarters to foreign subsidiaries in a MNC

Knowledge transfer between organizational units in international settings helps to build competitive advantage for MNCs. However, knowledge does not flow easily within the organization owing to existence of knowledge transfer impediments. Moreover, knowledge transfer from headquarter to subsidiaries is considered as an important factor for the daughter units’ successful operation. Nevertheless, the previous research presumed that knowledge transfer barriers are identical for all subsidiaries. Therefore, there was two research questions stated in this study. The first one was focused to examine whether knowledge transfer barriers differ in the case of each subsidiary. The second one was dedicated to investigate what factors can affect this difference. Empirical study was conducted through qualitative research method taken place in case study by means of semi-structured personal and phone interviews. There was 12 interviews organized in total: 6 with subsidiary and headquarter managers; and 6 with parent and daughter companies’ employees. The results showed that there are some barriers which will always exist between headquarter and subsidiaries, such as transmission channels, market, cultural and linguistic difference owing to the fact that it is an international transfer. On the other hand, knowledge barriers can vary due to social capital difference between parties and diverse subsidiary characteristics. Study showed that strong personal ties have significant positive effect on efficiency of knowledge transfer, trust building and relationships’ formation. Research showed that such subsidiaries’ specifications as difference in size, age, mode of entry, level of autonomy, and geographical distance determine a variety among knowledge transfer barriers. The results also showed the importance of efficient transmission channels, proper Human Resource Management practices and headquarter role as knowledge transfer facilitator.fi=Opinnäytetyö kokotekstinä PDF-muodossa.|en=Thesis fulltext in PDF format.|sv=Lärdomsprov tillgängligt som fulltext i PDF-format

The relationship between organization culture and knowledge sharing in a born global firm

Knowledge sharing and its stickiness have been studied extensively over the last decade in the context of traditional MNCs. However, minimal research focuses on the organizational culture of Born Global firms and its relationship with knowledge sharing. Knowledge sharing is very much influenced by organizational culture because it is through organizational culture that shapes employees to achieve desired organizational goals, such as increased internal knowledge sharing. The AMO framework (Ability, Motivation & Opportunity) is used to draw the link between knowledge sharing and organizational culture. In addition, the role of the CEO was studied to better understand the influence of the CEO in motivating (or inhibiting) subordinates to share knowledge. The research had two main research questions; the first research question looks at the extent to which organizational culture represents a barrier or enhancer to effective knowledge sharing within the born global firm. Secondly, research question 2 aims to investigate the role of the CEO in knowledge sharing. To complete this research, a qualitative in-depth case study was conducted on one Finnish Born Global firm. Interviewees were from its two headquarters located in two Finnish cities. Seven semi-structured interviews were carried out to complete this embedded case study. Organizational culture of the born global firm was in fact an enabler of knowledge sharing, contrary to findings of previous studies done on traditional MNCs. One key component of organizational culture emerged in this research – the flat organizational structure of the Born Gobal firm was shown to be most influential in enhancing knowledge sharing within headquarters and its foreign subsidiaries. In addition to having a flat organizational structure, the born global firm was relatively small and agile which allowed them to work fast and have direct communication with others within the firm. With shared work goals and a common understanding of the company’s visions, knowledge was shared effectively in this born global firm. The CEO of the born global firm works professionally and his openness eases knowledge sharing amongst his subordinates.fi=Opinnäytetyö kokotekstinä PDF-muodossa.|en=Thesis fulltext in PDF format.|sv=Lärdomsprov tillgängligt som fulltext i PDF-format

KNOWLEDGE SHARING FROM “EAST TO WEST” THROUGH EXPATRIATES A social capital perspective

The role of expatriates in MNCs has been regarded as strategic significant on knowledge transfer process; moreover the expatriation process is conducive to establish fruitful personal relationship as to enhance the development of social capital. Due to lack of sufficient study on knowledge transfer from “East to West”, the study of “East” expatriates seems to be significant to examine their social capital development that is helpful to understanding if knowledge flow from “East to West”. The purpose of this study aims to examine the factors that have impact on expatriates’ social capital development at interpersonal level in order to understand whether knowledge is possible to flow from “East to West”, which facilitate knowledge transfer from Chinese expatriates. Since such sharing of ideas and personal beliefs would be affected with lots of factor, the study is delimited to explore different dimensions of social capital theory as well as examine best practices transfers with dominance effect theory in order to dig out the whether dominance mentality play significant role in sharing knowledge. This study adopted case studies; furthermore the findings are based on 6 in-depth interviews that provide the empirical basis for case analysis. Finally it was found that tacit knowledge from Chinese expatriate hardly transfers to local Finnish subsidiaries, and explores that Chinese expatriates do hold certain knowledge, however because certain strict working process and large distinction technical background, these make tacit knowledge flows hardly to Finnish firm. It is also approved that dominance effect has a strong influence on the view of what is best practices and useful knowledge, even though Chinese expatriates have high willingness to transfer certain practices to local Finnish colleagues.fi=Opinnäytetyö kokotekstinä PDF-muodossa.|en=Thesis fulltext in PDF format.|sv=Lärdomsprov tillgängligt som fulltext i PDF-format

Intra and Inter-Organizational Knowledge Transfer Processes Identifying the Missing Links

Inspired by the resource- and knowledge-based views, much attention has been focused on knowledge transfer as a process of strategic importance. Still, many open questions regarding knowledge transfer processes need to be addressed to complete our understanding. For instance, what are the barriers to knowledge transfer, and what are the facilitators? A review of the literature reveals that it is divided into two streams: articles on intra-firm knowledge flows and articles on inter-firm knowledge flows. Part of the incompleteness of our understanding of knowledge transfer processes, we argue, derives from the fact that it is unclear in which way intra- and inter-firm knowledge flows are different. The paper investigates three questions: first, how knowledge transfer is defined differently in intra- and inter-firm knowledge flows; second: how barriers to knowledge transfer processes differ; and thirdly: what we need to know to be able to formulate a management view of organizational knowledge flows, whether intra- or inter-organizational. The concluding section argues five research questions whose answers may enable research to formulate a management view of knowledge flows.Review; internal knowledge flows; external knowledge flows; definition; barriers to knowledge flows

Soft technology transfer for Japanese MNCs in Malaysia : a conceptual model

This article examines the soft technology transfer for Japanese MNCs in Malaysia, based on knowledge-view model. The objective of this study is to verify the factors causing of soft technology transfer, technologists’ absorptive capacity and social capital. The interrelationships between absorptive capacity, social capital and soft technology transfer are formulated as conceptual models. (Abstract by authors

Knowledge sharing in the context of mentoring

The research examines individual level horizontal knowledge sharing across MNC subsidiaries taking place in the context of mentoring. The aim is to look beyond traditional career related outcomes associated with mentoring and explore how it affects ability, motivation and opportunity to share knowledge. The theoretical review is guided by the knowledge governance approach and factors affecting knowledge sharing are discussed with the help of the AMO- framework. The research is a qualitative case study of a MNC’s international business unit. Data was collected by conducting structured theme interviews. The empirical part of the research is based on the integrative framework derived from existing scientific literature on the research topic. The data was first analyzed to form a comprehensive picture about the current state of knowledge sharing in the business unit. Then, knowledge sharing in the context of mentoring was taken under closer examination. In the end, factors affecting an individual’s motivation, opportunity and ability to share knowledge within and outside the mentoring relationship were compared with each other for conclusions to be drawn. The findings suggest that knowledge sharing at the local level is mostly affected by a siloing effect arising from internal competition and an entrepreneurial organizational culture, whereas cross-border sharing is still in its infancy and is characterized by lack of structures. Mentoring can be considered as a commitment-based knowledge governance mechanism, which improves individuals’ motivation, opportunity and ability to share knowledge by transcending barriers otherwise present in the business unit. Nevertheless, perceived organizational commitment, prior mentoring experience and a wide work related experience gap were shown to have a negative effect on knowledge sharing, even in the context of mentoring.fi=Opinnäytetyö kokotekstinä PDF-muodossa.|en=Thesis fulltext in PDF format.|sv=Lärdomsprov tillgängligt som fulltext i PDF-format

The impact of distance (external) and organizational factors (internal) on the knowledge chain of multinational corporations: South Africa as a host country

Purpose – The geographic dispersion of MNCs implies that whilst it gives them access to new and different knowledge from diverse localities it also adds to the costs and complexities of managing that knowledge and its effective dispersal across geographies. The purpose of this paper is to examine how knowledge is transferred within MNCs and provide a framework for this process particularly focusing on the role that distance (external) and organizational factors (internal) plays therein. Methodology – A qualitative study is utilized focusing on two technology companies from different cultural home countries and the technology transfer process with their South African subsidiaries. Findings –We find that the standardization of knowledge impacts the creation and diffusion of knowledge, expatriates impact on the creation, diffusion and adoption, and finally relevance and localization impact on the adoption and utilization of knowledge. Contribution – We present a conceptual framework around trust and rationalization as regards transferring knowledge within MNCs and find some evidence of the impact of distance, particularly cultural, on the methods employed in this transfer. The paper illustrates the practical ways in which MNCs organize their internal resources and overcome various dimensions of distance in ensuring knowledge transfers. By choosing companies from such divergent home countries (one industrialized and one newly industrialized, with very different cultural settings) and examining their knowledge transfers with their South African subsidiaries we are able to unpack various dimensions of distance and how organizational mechanisms affect this process