The role of geographical distance on the relationship between cultural intelligence and knowledge transfer

Purpose: This paper's purpose is to investigate the ways in which the geographical distance between headquarters and subsidiaries moderates the relationship between cultural intelligence and the knowledge transfer process. Design/methodology/approach: A sample of 103 senior expatriate managers working in Croatia from several European and non-European countries was used to test the hypotheses. Data were collected using questionnaires, while the methodology employed to test the relationship between the variables was Partial least square. Furthermore, interaction-moderation effect was utilised to test the impact of geographical distance and, for testing control variables, Partial least square multigroup analysis was used. Findings: Cultural Intelligence plays a significant role in the knowledge transfer process performance. However, geographical distance has the power to moderate this relationship based on the direction of knowledge transfer. In conventional knowledge transfer, geographical distance has no significant impact. On the contrary, data have shown that, in reverse knowledge transfer, geographical distance has a moderately relevant effect. We supposed that these findings could be connected to the specific location of the knowledge produced by subsidiaries. Practical implications: Multinational companies should take into consideration that the further away a subsidiary is from the headquarters, and the varying difference between cultures, cannot be completely mitigated by the ability of the manager to deal with cultural differences, namely cultural intelligence. Thus, multinational companies need to allocate resources to facilitate the knowledge transfer between subsidiaries. Originality/value: The present study stresses the importance of cultural intelligence in the knowledge transfer process, opening up a new stream of research inside these two areas of research

Geo-cultural influences and critical factors in inter-firm collaboration

Inter-firm collaboration and other forms of inter-organisational activity are increasingly the means by which technological innovation occurs. This paper draws on evidence from two studies of the same set of firms to examine the conduct of collaborations over time across different contexts. The purpose is to examine the critical factors associated with successful collaboration and explore the importance of the geo-cultural context in understanding the conduct of inter-firm collaboration. The conceptual framework draws on two main sources: - Storper’s concept of ‘conventions’ of identity and participation and Lorenz’s classification of different types of knowledge. These are used to indicate the kinds and sources of adjustments required for successful collaboration

Ethics and taxation : a cross-national comparison of UK and Turkish firms

This paper investigates responses to tax related ethical issues facing busines

The Gravity of R&D FDIs.

The negative effect of distance is justified by the existence of transport costs which hamper the international exchange of final and intermediate goods, and by higher uncertainty about local markets. We submit that distance plays a remarkably different role in the case of R&D FDIs since they mainly involve the international transfer, absorption and use of knowledge. Using data on bilateral investment projects in R&D, manufacturing and other business activities between 58 countries, we find that geographic distance does not hinder R&D FDIs as much as in the case of production and other investment activities. Furthermore, once we control for institutional and psychic distance, in particular language and religious differences, the negative effect of geographic distance vanishes.Multinational Firms, International Business, Technological Change, Choices and Consequences, Diffusion Processes.

Common Territory? : Comparing the IMP Approach with Economic Geography

The IMP research tradition has always been open to the cross-fertilisation of ideas with other social science disciplines that study similar phenomena. Recent years have seen a growing interest among IMP researchers in phenomena such as regional strategic networks, spatial clusters and innovation and new business development in networks. IMP papers published on these topics are increasingly citing conceptual frameworks and empirical findings from the field of economic geography. This paper discusses the development of IMP thought and the development of thought in economic geography (particularly evolutionary economic geography), and compares their approaches to the analysis of regional phenomena. The goal is to identify key ideas from economic geography that have been under-exploited in IMP research, in order to suggest original new approaches available to IMP researchers interested in these fields. A number of such ideas are explored: proximity as a multi-dimensional and multi-faceted concept; the distinction between, and relative importance of, learning activities arising automatically from being embedded in a community (local or regional buzz) and learning activities arising from positive investment in channels of communication (pipelines); the concept of relational capital developed by economic geographers; and, conceptualisations of externalities commonly used in the study of spatial clustersPeer reviewedFinal Accepted Versio

Regional Determinants of FDI Distribution in Poland

In this paper we examine the location determinants of the inflow of Foreign Direct Investment (FDI) into Poland, at a regional level. Using survey data from an online questionnaire in February 2005 and a multinomial logit model incorporating the investorís specific characteristics, we show that knowledge-seeking factors alongside market and agglomeration factors, act as the main drivers for the inflow of FDI to the Mazowieckie region (including Warsaw), while efficiency and geographical factors encourage FDI to the other areas of Poland. Some implications are drawn for FDI attraction policy in Poland.http://deepblue.lib.umich.edu/bitstream/2027.42/64429/1/wp943.pd

Managing virtual talent

Today’s multinational enterprises (MNEs) tend to rely on high performers who are dispersed across the globe, creating the need to manage ‘virtual talent’. Virtual talent here refers to high-potential or high-performing employees in strategic roles who are part of a virtual collaboration, namely a collaboration that spans geographic boundaries and relies to a significant extent on electronic communication media. This chapter will highlight the specific challenges and levers of managing talent involved in global virtual collaborations in general, with a special attention to distances, boundaries, and perceived proximity. It will further elaborate on particular, important issues of managing global virtual talent within MNEs. Lessons will here be drawn from case study evidence on onshore-offshore collaborations. Finally, the chapter will provide a brief outline of the emerging practices of managing ‘virtual contractors’

Expatriates managers' cultural intelligence as promoter of knowledge transfer in multinational companies

This study analyzes the role of the Cultural Intelligence (CQ) of expatriate managers in the processes of Conventional (CKT) and Reverse Knowledge Transfer (RKT) in Multinational Companies (MNCs). The Partial Least Squares-Structural Equation Modeling (PLS-SEM) technique was adopted to analyze the data from a survey of 103 senior expatriate managers working in Croatia. The study reveals how CQ, in all of its four dimensions (metacognitive, cognitive, behavioral, and motivational), acts as a knowledge de-codification and codification filter, assisting managers in the Knowledge Transfer process. The study also reveals how previous international experience does not moderate the positive effect of CQ on both CKT and RKT, offering important theoretical and practical insights to support MNCs in the KT process