In addition the concept mnc is discussed and it is explained why and. Further reproduction prohibited without permission. Applying a new theoretical and empirical approach to intrafirm knowledge transfers, this paper provides some initial insight to the littleresearched phenomenon of why some subsidiaries are isolated from knowledgetransfer activities within the multinational corporation mnc. Managing reverse knowledge flow in multinational corporations. Knowledge developed and retained within each units. Pdf knowledge flows and the structure of control within. Part of the growth has resulted in the field becoming more fluid and thus prone to multiple definitions and measures of the same notions and constructs, as well as leading to contrary findings. To better understand the knowledge transfer process within multinational corporations, the authors developed a set of four propositions. Multinational corporations have been broadly defined as business firms that uphold value addedholdings overseas. Smith school of business, the university of maryland, college park, maryland, u.
Knowledge sharing on the interpersonal level is increasingly being recognized as a fundamentally important aspect of intracompany knowledge flows within the multinational corporation mnc. Except for our predictions regarding the impact of source units motivational disposition on knowledge outflows, the data provide either full or partial support to all of the other elements of our theoretical framework. Knowledge flows within multinational companies include, along with the. Based on the business network theory, the thesis applies a microperspective by drawing on an exploratory case study, which examines how a germanheadquartered technology provider. During his 12 years at mastercard, john pagano, cpa, cgma, encountered many of the factors that can impede the flow of knowledge within a multinational company. Knowledge flows within multi national companies mncs are essential for their competitive advantage. Technological forms to transfer explicit knowledge according to zander and kogut 1995, the dichotomy between tacit and explicit knowledge is based on the ability and forms of knowledge to be codified and.
These predictions were tested empirically with data from 374 subsidiaries within 75 mncs headquartered in the u. Theory an overarching theoretical framework as krone, jablin, and putnam 1987 have. Ubira etheses managing knowledge flows within and across. Subsidiaries have different roles within corporations, from simple. This paper conceptualizes the multinational corporation mnc as a network of knowledge flows and argues that, within the same mnc, subsidiary strategic roles can be expected to differ in terms of the extent and directionality of knowledge flows between a focal subsidiary and the rest of the corporation. Knowledge transfer in multinational companies evidence. This study aims to provide insight to the littleresearched phenomenon of reverse knowledge flow within multinational corporations mncs and to explain the role of managerial attention in exploiting the prospect of knowledge transfer from subsidiaries located in developing countries. Conventional and reverse knowledge flows in multinational. Explaining subsidiary isolation and its performance implications l. This paper seeks to explain why some subsidiaries are isolated from the knowledge transfer activities within multinational corporations. Luiz, the impact of distance external and organizational factors internal on the knowledge chain of multinational corporations. Felipe monteiro, niklas arvidsson and julian birkinshaw additional contact information l. The evolution of reverse knowledge transfer within.
Research on knowledge flows in multinational corporations has grown considerably over the last 15 years or so. How can we increase the effectiveness of crossboarder transfers of knowledge. However, the problem of knowledge transfer will become increasingly difficult with geographical and cultural distance. Vesa peltokorpi, corporate language proficiency and reverse knowledge transfer in multinational corporations. Pagano, who recently left the financial services company, was business financial officer of global human resources and in charge of global payroll at mastercard. Gupta university of maryland vijay govindarajan dartmouth college virtually all research on strategic control within multinational corporations mincs has focused on macro differences in control systems and processes across entire mncs. Knowledge flows within multinational corporations anil k. The aim of this paper is to analyze knowledge flows transfer within multinational corporations. Explaining subsidiary isolation and its performance implications lf monteiro, n arvidsson, j birkinshaw organization science 19. To realize global competitive advantages multinational companies mncs need to coordinate the intrafirm flow of knowledge, and combine the dispersed knowledge residing at individual units within. The integration of technological knowledge could have resulted through several different and possibly overlapping ways wilkins, 1974, including technology transfer between subsidiaries of the multinational group, the international mobility of individuals within the multinational group, knowledge exchange as part of collaboration or. The paper analyzes the transfer of knowledge flows in multinational. However, they view the mnc in terms of knowledge flows, which in turn requires certain organisation. This paper is structured into three major sections.
Knowledge flows within multinational corporations four domains. In particular, drawing upon recent developments in the theory of international business and the knowledgebased view of the firm, the mnc is considered as. Mnes often assign expatriates to foreign subsidiaries with the aim of transferring knowledge. Explaining subsidiary isolation and its performance implications abstract applying a new theoretical and empirical approach to intrafirm knowledge transfers, this paper provides some initial insight to the littleresearched phenomenon of why some subsidiaries are isolated.
In particular, it is focused on to what extent multinational companies can replicate headquarters human resource management systems in subsidiaries. Reverse knowledge transfer rkt within multinational corporations mncs is a focal point of the academic research on the evolution of competitive advantage in mncs. This research investigates what knowledge is and how knowledge flows are established. Multinational corporations can new knowledge as their competitive advantages, but transfer of knowledge across. Several perspectives on international knowledge flows, from control issues to cultural barriers, are integrated into a comprehensive framework. The multinational corporation mnc to a large extent, determines its sustainable economic success through the effective management of knowledge flows within and across its boundaries. Felipe monteiro and niklas arvidsson and julian birkinshaw, journalorganization science, year2008, volume19, pages90. This book shifts the debate on knowledge transfers within multinational corporations mncs back to its core. According to spero and hart 1999 a multinational corporation mnc as a business enterprise that maintains. Request pdf knowledge flows within multinational corporations this paper advandes and tests an overarching theorical framework pertaining to incorporate knowledge transfers within. Request pdf knowledge flows within multinational corporations pursuing a nodal i. Knowledge flows and the structure of control within. Knowledge flows within multinational corporations gupta.
Furthermore it shows the barriers to knowledge flows that exist. A definition of knowledge will be provided, based on that we will analyze the process of knowledge sharing, how to organize and transfer it. Knowledge flows within multinational corporations knowledge flows within multinational corporations gupta, anil k govindarajan, vijay 20000401 00. Applying a new theoretical and empirical approach to intrafirm knowledge transfers, we argue that differences in learning capabilities and ingroupoutgroup dynamics result in some subsidiaries never or very rarely exchanging any knowledge. Explaining subsidiary isolation and its performance implications article pdf available in organization science 191. The management of knowledge in the multinational corporation involves projecting knowledge between different units of the corporation, e. Interactive effects of communication media richness and commitment to headquarters, journal of international management, 10. The transfer of knowledge between units in the same country is far from trivial. The present thesis is intended to contribute to the research on interunit knowledge sharing in mncs by increasing our knowledge of three such issues, namely language marschan 1997, marschanpiekkari et al. To understand what determines knowledge flows into organizational subunits, the study reported here examines the relevance of the knowledge to the operations performed at the receiving subunit. Pdf knowledge flows within multinational corporations. Interpersonal interaction between managers during the course of ongoing organizational routines such as meetings, emails, telephone. Explaining subsidiary isolation and its performance implications, authorl. Knowledge flow transfers in multinational corporations.
Factors affecting knowledge transfer and absorptive. However, we hold that a subsidiary receives knowledge from its parent company in order to fulfill its objectives meyer 2003. London business school, sussex place, regents park, london nw1 4sa, united kingdom. This study investigates the determinants of knowledge transfers to and from newly acquired subsidiaries in three transition economies in central and eastern europe. Since we consider culture a primary factor within the dynamics of a company, specifically multinational corporations mnc, which deal with several subsidiaries, we would like to. Organizing for knowledge flows within mncs sciencedirect. Knowledge transfer is framed as a problemistic search process initiated by the recipient unit. This study analyzes inflows of knowledge from peers and supervising units into subunits of multinational corporations. Virtually all research on strategic control within multinational corporations mncs has focused on macro differences in control systems and processes across entire mncs. How to promote knowledge flows within multinationals.