The Role of ICT-Based Information Systems in Knowledge Transfer Within Multinational Companies (original) (raw)
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Knowledge transfer performance of multinational companies
MIR: Management International …, 2003
Knowledge is ascribed a key role when explaining the existence and the growth of multinational companies (MNCs). The effective dissemination throughout the MNC organization of valuable knowledge acquired by its local affiliates is seen as an important source of competitive advantage. Knowledge differs in characteristics and so do the available transfer mechanism. As such, it is essential that the MNC employs the mechanism of transfer that suits the specific knowledge characteristics. The use of unsuitable transfer mechanisms may cause loss of knowledge in the process of transmission or may involve unnecessarily high communication costs -both with potentially negative effects on the performance of the MNC. Focusing on internationalization knowledge this large-scale empirical study explores the incidence and the performance implications of fit between knowledge characteristics and transfer mechanisms as used by Danish MNCs. It is found that a substantial proportion of the observed MNC knowledge transfer transactions may be classified as 'misfits' and to some extent do these 'misfits' result in impaired performance of the MNCs. (Knowledge Transfer, Knowledge Characteristics, Multinational Companies) __________________________________________________________________ 1 1977, p. 30).
Knowledge Dissemination in Multinational Corporations
Today's globalization trend in industry is of major importance for world economy. One effect of the globalization trend is that international companies are exposed to a broadened knowledge base. A major competitive advantage for a multinational corporation (MNC) is its ability to utilize knowledge that is situated at the different locations. Thus, in order to improve and manage the utilization of knowledge within MNCs, it is necessary to try to get a better understanding of factors that influence knowledge dissemination (KD). Therefore, the overall research purpose of this thesis is to explore factors that influence KD in product realizing MNCs. Three research questions have been formulated and a research model of KD consisting of five components (Actors, Content, Media, Context, and Activity) has been developed in order to specify and fulfill this purpose. The five components are used to group previously identified influencing factors. The primary research strategy has been to use case studies. The main empirical data stem from five studies of Swedish product realizing MNCs performed over a 13-year period. Three were case studies performed at Volvo Car Corporation. The fourth was a multiple case study including four other MNCs. In addition to this, one survey has been performed, where the respondents were representatives from R&D units at 18 MNCs. The findings regarding the first research question (How can an introduction of IT-based media for KD affect product and production verification processes?) suggest that the use of IT-based media has a negative influence, directly or indirectly. Several of the factors associated with the component Actors are found to have a negative influence on KD. However, regarding Content, mainly negative effects have been observed due to information overload effects. The observed effects are mixed for the component Media. Positive effects, such as the possibility for actors to revisit and secure their original interpretations thanks to the use of data bases and e-mail, have been observed. This is particularly relevant within time zone separated MNCs. Negative factors include the information overload aspect as well as de-contextualization. Therefore, concerning Context, language distance exhibits the characters of an obstacle or an inhibitor depending on which level of IT-maturity the involved actors display. The mechanisms displayed when a common "computer"-language is iv introduced are similar to the one's displayed when bilingual intermediaries are used or when intra-organizational boundaries are bridged thanks to temporary project constellations. Thus, with Activity, it is clear that the introduction enables companies to start the KD process earlier. The results for a local geographical setting indicate that there is an inhibiting effect on KD. However in the MNC setting, this introduction seems to provide an opportunity for virtual socialization, positive for KD. The findings regarding the second research question (How can an increased use of IT-based media affect KD in the interface between Product Development and Manufacturing?) suggest that IT-maturity is highly relevant for the Actors. However, the obstacle-like character of ITmaturity implies that this aspect should be included in the recruitment processes in order to secure a high IT-maturity in parts of MNCs where this is not obvious, while for Media, the increased use is a facilitator. This is particularly clear for actors with lower degrees of ITmaturity. However, for Context, overarching organizational solutions (such as boundarybridging projects) increase trust, which is positive for KD. It has also been shown that several of the factors considered crucial in order to achieve efficiency in the PD / manufacturing interface are influenced in positive as well as in negative ways. Therefore, regarding the third research question (How can factors be classified to enable management of-and influence-KD?) a categorization of factors, focusing on their relative impact on KD, has been developed. This categorization comprises Facilitators (which have a positive impact on KD), Inhibitors (which have a negative impact on KD), and Obstacles (factors that obstruct KD until certain conditions or levels are fulfilled). The analysis indicates that several factors, influencing KD in the local-national and co-located-verification setting, are also present in the expanded multinational setting. Furthermore, there is evidence that several factors are applicable on multiple interaction levels.
Knowledge Transfer within Multinational Corporations
Concepts, Methodologies, Tools and Applications (4 Volumes)
A growing interest in the various aspects of knowledge transfer within multinational corporations has been evidenced by a recent surge in empirical research. Despite the fact that the number of empirical studies investigating various aspects of knowledge transfer within multinational corporations has significantly increased, very few insights into the influence of culture on knowledge transfer, however, have come to light. In fact, the cultural aspects and the individuals involved in the transfer and communication of corporate knowledge within multinational corporations seemed to have been overlooked by researchers. This chapter attempts to fill this gap and investigates the impact culture has upon knowledge transfer processes within multinational corporations. It presents a comprehensive intercultural knowledge transfer model and identifies which aspects of national culture hinder and which aspects foster an effective transfer of knowledge.
Mapping Internal Knowledge Transfers in Multinational Corporations
Administrative Sciences
Managing multiple knowledge transfers between headquarters and subsidiaries, among subsidiaries, and also within each of these units is crucial for multinational corporations’ (MNCs) survival. Therefore, this article aims to uncover the main factors influencing internal knowledge transfers in MNCs—including intra-unit knowledge transfers and transfers between units, namely, conventional, horizontal, and reverse knowledge transfers. To achieve this goal, a systematic literature review (SLR) was conducted to synthesize the content of 85 articles. From a set of 1439 papers, only 85 related to knowledge transfer and knowledge sharing were considered. Based on an inductive thematic approach, eight different research categories and 97 topics were identified. Four different internal knowledge transfers (intra knowledge transfer (IKT), horizontal knowledge transfer (HKT), conventional knowledge transfer (CKT), and reverse knowledge transfer (RKT)) are compared across eight thematic categori...
Knowledge transfer within the multinational firm: What drives the speed of transfer
This paper examines the process of knowledge transfer in an intra organizational context. We first hypothesize that internal transfers will occur faster than external imitation due to the conceptual view of the multinational corporation as a social community that specializes in the creation and transfer of knowledge. We then present an analysis of the determinants of the speed of intra firm knowledge transfer by using a dyadic level of analysis, involving sender and recipient subsidiaries, examining the effects of subsidiary technology specialization and dyad interaction and technological distance. We test our hypotheses using patent citation data in the semiconductor industry. Key Results The findings demonstrate that internal transfers occur faster than external imitation. The paper finds support for differential influences on the transfer process; for the recipient, specialization with technology is important. Interestingly, dyad interaction is not significant, but dyad technological distance is significant. Abbreviated Heading : Knowledge transfer within the multinational firm
Knowledge Transfer Within Multinationals and Their Foreign Subsidiaries: A Culture-Context Approach
Group & Organization Management, 2009
The authors' research introduces a culture-sensitive approach to the analysis of knowledge transfer in multinational organizations. This article investigates the knowledge itself, how knowledge is represented, and its flow within social structures. The analysis considers forms of knowledge transfer as cultural products, and their interaction with the populations involved. Sociocultural structures as well as specific cultural characteristics of the populations are analyzed in reference to knowledge transfer as well as the interaction between the relevant contexts. Data were collected in two multinational Israeli software development companies and their affiliates in India. The analyses included various qualitative analyses of 96 interviews, informal discussions, documents, including instant messaging chats and observations. The authors show, for example, how the influences of contemporary professional work norms as well as customary behavior from the national context combine to influence who talks to whom, what kind of information is transferred, and the extent to which people of disparate status and background are willing to share.
Transfer of knowledge in Multinational Corporations (MNC’s) on International Projects
Journal of Advanced Management Science, Vol. 2, No. 3, pp. 228-231, 2014
Based on authors experience in management and implementation of infrastructure projects for multinational corporations (MNC's) on international projects in Europe and Africa, this paper identifies main constrains in transfer of knowledge inside MNC's. In MNC's very often is necessary transfer of knowledge from parent company to subsidiary company or branches, since is an important source of competitive advantage compared with their domestic counterparts. Therefore this transfer of knowledge isn't always successful and linear, due several constrains. Since only in later stage of growth at the foreign market, subsidiaries may cumulate enough knowledge, to manage the projects with confidence, aim of MNC's are sustain free flow of knowledge inside the corporations towards less knowledgeable and experienced subsidiaries in foreign markets, enhancing possibility of growth and diversification. In this paper we identify common bottlenecks which are important to analyze and point out possible solutions which can mitigate them. In the knowledge transfer process we can identify main constrains, which are more important to analyze on this process: mechanisms, human capital, competition for resources inside MNC's, ethics and cultural barriers.
2015
In the era of emerging knowledge economy, many companies strive to constantly update/develop intangible resources by participating in knowledge networks. An MNC is an example of a network which provides access to a large knowledge base. Within such a network inter-unit knowledge flows are facilitated by multiple mechanisms, including international assignments (IAs). An increasing variety and availability of less expensive IA forms can encourage small entities to adopt practices applied by larger organizations. This study endeavours to find out how small-, medium-sized subsidiaries use IAs in knowledge flow within corporate networks, identify emerging patterns, and compare these to large companies on empirical results obtained from companies with 100% foreign ownership. Four clusters representing different patterns of IA usage in cross-border knowledge flow by smalland medium-sized organizations were revealed.