Comparative analysis of knowledge transfer barriers from headquarters to foreign subsidiaries in a MNC
Koltsova, Elena (2013)
Kuvaus
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Tiivistelmä
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.
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.
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