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Knowledge Transfer in Multinational Corporations
Knowledge Transfer in Multinational Corporations
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MonoQontQiit
ImfHnufKHHH K6VI6W
© Gabler Verlag 2007
Dana B. Minbaeva
Keywords
Multinational
KnowledgeTransfer, Corporations
Author
Dana B. Minbaeva,AssistantProfessorin HumanResourceManagement, CenterforStrategic
Management andGlobalization,
CopenhagenBusinessSchool,Copenhagen,
Denmark.
receivedJuly2005,revisedMarch2006,finalrevisionreceivedOctober2006.
Manuscript
Introduction
A reviewoftherecent literature
onknowledge transferinmultinational corporations
(MNCs) showsa tendency tofocusonknowledge transfer as an aggregateconcept.
Indeed,"notwithstanding the criticalityof internalknowledgetransfers within
MNCs ... verylittlesystematic empiricalinvestigation into the determinants of
intra-MNC knowledgetransfers has so farbeenattempted" (Gupta/Go vindarajan
2000,p. 474). Thispaperaimstofillthatgap inthecase ofknowledge transferred
fromtheheadquarters of MNCs to theirsubsidiaries by developingand testinga
modelthatanalyzesthejointeffect offourdeterminants onthedegreeofknowledge
transfer.
Severaltheoreticalorientationshavemadevaluablecontributions totheanalysis
of knowledgetransfer. Amongthemare theresource-based viewof thefirm,the
dynamiccapabilitiesapproach,organizational learningtheoryand theemerging
knowledge-based view. These contributions have been reviewedto identify ap-
to the
proaches understanding knowledge transferprocessandclassifyitsdetermi-
nants.Thereviewidentified over90 determinants ofknowledge transfer.
Usingthe
signalingmetaphor thathasbeenbySzulanski(2000),thedeterminants areclassi-
fiedintofourgroups:characteristics of knowledge, characteristicsof knowledge
senders(disseminative capacity),characteristicsof knowledge receivers(absorp-
tivecapacity),and characteristics of therelationships betweensendersand re-
ceivers.Fourhypotheses addresstherelationship betweeneachofthedeterminants
andthedegreeof knowledgetransfer. Hypotheses are testedusingdatacollected
from92 subsidiaries ofDanishMNCs in 11 countries.
Theresultsofthisstudysupport thethesisthatthesuccessofknowledge trans-
feris notexclusivelya function of thecharacteristics of knowledge;ratherthe
characteristicsof the sendersand receiversthemselves play an important role.
Organizations whose employees have superior skillsand willingness toboth absorb
and shareknowledgeachievesuperior knowledgetransfer results.The degreeof
knowledge transferis even higher when close relationships betweensendersand
receiversareestablished.
Figure1. KnowledgeTransfer:
A SchematicDiagram
///
Italies harriersdeterminantsassociated with the lour elements of know ledge transfer
Figure2. ConceptualModel
ofknowledge
Characteristics
I H,(-)
Characteristics
ofknowledge H2(+) .
receivers
(absorptive
capacity) ^Q ee ^
knowledge
Tj /,x transfer
Characteristics
ofknowledge "3 'T)
senders(disseminative
capacity) I
oftherelationships
Characteristics H ,+x '
betweenknowledgesendersand
receivers
• Potential
lossofvalue,bargaining power,andprotection
ofindividual
competitive
advantageduetoa strong ofpersonalownership
feeling oftheaccumulated,
"hard
won"knowledge.
• Reluctancetospendtimeon knowledge Knowledgesendersmaynotbe
sharing.
in knowledgesharingsincethetimeand resourcesspenton it could
interested
be investedin activities
thataremoreproductivefortheindividual.
Ingeneral, knowledge
transferring acrossorganizational forvarious
unitsis difficult
reasons:a unit'sownexperience is likelyto be more relevant than theexperience
mayexistincapabilities,
ofotherunits;differences structure
culture, ortechnology;
andthereareinherent intheexperience
differences withknowledge transfer(Argote
1999).Thus, intra-MNC knowledge transferis possibleonly when close relation-
shipsareestablishedbetweensendersandreceivers. Theremustbe communication
for
bridges,possibilities dialogue acrossorganizational hierarchy, conditions for
Data
Measures
forthecharacteristics
Themainsourcesofinspiration ofknowledge measureswere
thetaxonomicdimensionsofWinter(1987) and studiesby Zander (1991), Kogut
andZander(1992),andZanderandKogut(1995).
Respondentswereaskedto clarifytheextentto whichMNC organizational
knowledgecould as (1) easyto codify,i.e., information
be characterized is often
in and
manuals, procedures;
provided blueprints, (2) complex,i.e., knowledgeis
Sevenitemswereusedtocapturethisconstruct, fiveofwhichwereadoptedfrom
a previousstudy(Minbaevaet al. 2003). Respondents wereaskedtoevaluatesub-
sidiaryemployees'job-related abilitiesandoverallcompetencies,andjob-related
motivation, involvement andjob satisfaction.
Twoitemsmeasuring theabilityand
of
willingness subsidiary employees to absorbnew knowledge were added,which
werenotmeasuresofindividual motivation butratheroftheoverallwillingnessof
subsidiary employees toabsorbknowledge. Allquestionsuseda 5-pointLikertscale
ranging from"verylow" to "outstanding". A comparatively highCronbachAlpha
(0.79) allowed theuse ofthecomposite indexforabsorptivecapacityofknowledge
receivers.
Results
Table 1. DescriptiveStatistics
Variable Minimum Maximum Mean SD
KnChar 1.50 5.00 2.9701 0.68022
AbsCap 2.14 4.86 3.6530 0.51133
DisCap 1.50 5.00 3.1957 0.75940
NetMNC 1.00 5.00 3.2603 1.14294
DoKT 1.00 5.00 2.8850 0.80667
Matrix
Table 2. Correlation
12 3 4 5
1. KnChar 1.000
2. AbsCap -0.204f 1.000
3. DisCap -0.212* 0.344*** 1.000
4. NetMNC -0.271* 0.309** 0.208f 1.000
5. DoKT -0.198* 0.333** 0.291** 0.360** 1.000
***p<0.001,**p<0.01,*p<0.05,fp<0.1,n = 92
ß (standardized) s.e.
Constant 2.895*** 0.085
indicates,"thelargertheabsolutevalue of a coefficient,
themoreimportant is
thecontributionofthecorrespondingvariable"(Szulanski1996,p. 36). Theresults
oftheregression arepresentedinTable4, andsuggestthatthevariablemeasuring
of knowledgereceivershas thestrongest
thecharacteristics effecton thedegree
of knowledgetransfer,closelyfollowedby therelationshipsbetweenknowledge
sendersand receiversand thecharacteristics
of knowledgesenders.Knowledge
aretheleastimportant
characteristics determinant, whenotherfactorsarepresent.
Endnotes
References