Effective Knowledge Transfer in Multinational Corporations

201 Pages·2005·2.214 MB·English

by  Tina C. Chini

Effective Knowledge
Transfer in Multinational
Corporations
Tina C. Chini
Effective Knowledge Transfer in Multinational Corporations

Effective Knowledge Transfer
in Multinational Corporations
Tina C. Chini
Vienna University of Economics and Business Administration
© Tina C. Chini 2004
Foreword © Bodo B. Schlegelmilch 2004
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First published 2004 by
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Library of Congress Cataloging-in-Publication Data
Chini, Tina C., 1979–
Effective knowledge transfer in multinational corporations/Tina C. Chini.
p. cm.
Includes bibliographical references and index.
ISBN 1–4039–4220–X
1. Knowledge management. 2. International business enterprises.
I. Title.
HD30.2.C47445 2004
658.4′038—dc22 2004045424
10 9 8 7 6 5 4 3 2 1
13 12 11 10 09 08 07 06 05 04
Printed and bound in Great Britain by
Antony Rowe Ltd, Chippenham and Eastbourne
To my mother on her 50th birthday

Contents
List of Exhibits ix
Foreword by Bodo B. Schlegelmilch xii
Preface xiv
Acknowledgements xvi
1 Positioning 1
The knowledge management challenge 1
Aim of the research 2
2 Knowledge and the MNC 5
Introduction to knowledge management:
a conceptual background 5
The relevance of knowledge management in the MNC 19
3 Knowledge-Based Determinants of MNC
Strategic Configuration 37
Headquarters–subsidiary relationships 37
Strategic mandates, coordination and control 39
The capability perspective 49
Contingency factors 52
4 A Model of Knowledge Transfer in MNCs 58
Strategic mandate 58
Value of knowledge stock 60
Knowledge transfer capabilities 61
Knowledge transfer effectiveness 64
Organizational distance 65
Cultural distance 66
5 Research Design and Methodology 68
Research context 68
Data collection 70
Operationalization and measures 76
vii
viii Contents
6 Analysis and Results 81
Descriptives of the unit of analysis 81
Analysis of the model’s constructs 82
Hierarchical relationships and culturally close subsidiaries 107
Hierarchical relationships and culturally distant subsidiaries 124
Lateral relationships of subsidiaries 129
7 Conclusion,Limitations and Implications 138
Conclusion 138
Limitations 145
Implications for future research 146
Managerial implications 147
Appendix 1 Specification of the Measurement Model 149
Appendix 2 Model Identification and Assessment 153
Notes and References 157
Bibliography 159
Index 170
List of Exhibits
2.1 The continuum of data – information – knowledge 7
2.2 Tacit and explicit knowledge 9
2.3 Definitions of knowledge management 11
2.4 The knowledge management value chain 13
2.5 A simplified communication model 15
2.6 Nine knowledge transfers 16
2.7 The knowledge spiral 18
2.8 Studies on intra-MNC knowledge transfers 30
2.9 Areas of empirical contributions 35
3.1 Subsidiaries’ strategic mandate typologies 41
3.2 Control mechanisms 45
4.1 A model of intra-MNC knowledge transfer 59
4.2 Strategic mandates of subsidiaries 59
4.3 Overview of hypotheses 1a–1d 64
5.1 Industry weights of target and final sample 73
5.2 Industries in the final sample 73
5.3 Regions in the sample 74
5.4 Location of headquarters 74
5.5 Location of headquarters in Central/Western Europe 75
5.6 Location of subsidiaries 75
5.7 Knowledge flows to and from headquarters 76
5.8 Knowledge flows to and from the focal subsidiary 76
6.1 Employees at units 82
6.2 Positions of respondents 83
6.3 Strategic mandates of subsidiaries 84
6.4 Cross-tabulation: strategic mandate and number
of employees 85
6.5 Strategic positions of headquarters 87
6.6 Strategic positions of global versus regional headquarters 87
6.7 Knowledge stock of subsidiaries compared with peer
subsidiaries 88
6.8 Knowledge stock of subsidiaries compared with their
headquarters 89
6.9 Knowledge stock of headquarters compared with subsidiaries 89
6.10 Hierarchical formal transmission channels 92
ix