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Purpose – This research aims to understand inter-subsidiary innovation transfers from a subsidiary business network perspective. We examine transfer performance with particular interest in the influence of subsidiary business networks in innovation development stage. The moderating effect of knowledge inputs, that is, external and internal business partners, on transfer efficiency and effectiveness are hypothesized.

Methodology/approach – This study utilizes the data of 129 inter-subsidiary transfer projects from 19 multinational corporations. The empirical analysis specifically examines how and to what extent the development partnership – source of knowledge inputs – affects the efficiency and effectiveness of innovation transfer between subsidiaries.

Findings – The results indicate that the source of knowledge inputs influence transfer performance indirectly, but not directly. The impact is made through the dyadic relationship to the transfer performance. The findings complement the literature on innovation/knowledge transfer by incorporating innovation development into scrutiny and gauging transfer efficiency and effectiveness explicitly.

Value of paper – The empirical evidence highlights the significance of dyadic willingness to both transfer efficiency and effectiveness. Its influence to transfer performance exceeds that of dyadic similarity or previous collaboration experience. The result provides useful managerial implications to MNCs headquarters and subsidiaries. The lack of previous collaboration experience or technical similarity may pose the down side for innovation transfer between subsidiaries. But that should not put off the initiatives to conduct innovation transfers. Such problem could be effectively remedied by strong willingness between the dyad. The resources and support that subsidiaries receive could counteract the hurdle of dissimilarity and unfamiliarity.

Knowledge transfer is an important global leader (GL) competency, given their role as knowledge brokers and capacity builders. However, knowledge transfer skills and the transfer process itself have received scant attention from both global mobility and leadership scholars. Similarly, multinationals have seldom systematically collected and utilized repatriate knowledge, despite the competitive advantage it represents in a global knowledge economy. To fill this gap, an exploratory qualitative study employing critical incidents and interviews with a multi-country sample of 47 German, Japanese, and US repatriates identified variables that facilitate knowledge transfer attempts to the work unit. Our findings corroborate the proposed variables in a conceptual model of the transfer process and articulate the transfer skills that help explain their ability to transfer. Most importantly, our findings introduce an interactive transfer model that explicates the microprocess of transfer in the repatriate–work unit relationship. We conclude with implications for global leadership research and HRM practice.

A long tradition in social science research emphasizes the potential for knowledge to flow among firms colocated in dense areas. Scholars have suggested numerous modes for these flows, including the voluntary transfer of private knowledge from one firm to another. Why would the holder of valuable private knowledge willingly transfer it to a potential and closely proximate competitor? In this paper, we argue that geographic concentration has an effect on the expected compliance with norms governing the use of transferred knowledge. The increased expected compliance favors trust and initiates a process of reciprocal exchange. To test our theory, we use a scenario-based field experiment in gourmet cuisine, an industry in which property rights do not effectively protect knowledge and geographic concentration is common. Our results confirm our conjecture by showing that the expectation that a potential colocated firm will abide by norms mediates the relationship between geographic concentration and the willingness to transfer private knowledge.

This study investigates the way in which acquisition-related human factors affect knowledge transfer in the context of Chinese cross-border M&A for strategic assets. The authors find that the process of knowledge transfer is reciprocal for revenue and cost synergies, including explicit and tacit knowledge. The establishment of joint ventures (JV) in China after the takeover boosts product-oriented knowledge transfer from overseas-acquired firms in mature markets to Chinese acquirers. The promotion of overseas synergies stimulates complementary knowledge transfer flow, which is reversely transferred from Chinese acquirers to overseas-acquired subsidiaries such as low-saving sourcing and new market applications. This study identifies three acquisition-related human factors that impact overseas knowledge senders for knowledge transfer. These human factors are implemented by Chinese strategic investors as new shareholders during the loosen integration phase. The first facilitator is all-round communication programs with top management involvement, aiming to build up constructive communication channels to boost knowledge transfer. The second facilitator is competence-based trust, which stimulates cooperation and application based on similar professional competence between Chinese acquirers and their overseas-acquired subsidiaries. The impeder is a high turnover of key skilled workers at Chinese acquirers to undermine the effectiveness of knowledge transfer.

Purpose — The purpose of this chapter is to outline the findings of research into knowledge transfer across countries and culture and the implications of the findings for human resource practitioners.

Methodology/approach — Use of a qualitative case study methodology approach was employed.

Findings — The findings highlight the inherent difficulty of knowledge transfer and the broad range of factors that influence the knowledge transfer process and which are connected together in a complex and non-linear manner.

Research implications — The research revealed insight into those managers most likely to be effective at knowledge transfer and what characteristics and experiences had supported this openness to knowledge from outside of their cultural context. The lessons from the research can be incorporated into the selection and development processes for expatriates.

Originality value — The study affirmed the critical importance of face-to-face interaction in knowledge transfer. The research also resulted in the development of a practical model and tool, which pulls together the broad range of factors that impact on knowledge transfer.

This chapter presents a review of the state of the art on the topic of knowledge transfer following post-merger integration (PMI) in international mergers and acquisitions (M&A) and identifies points of agreement and disagreement, recognizes underexplored areas and provides suggestions on how they could be explored in future studies. The chapter points to the limited amount of literature that describes knowledge transfer following international acquisitions, while highlighting it as an emerging field of research. The knowledge transfer literature mainly refers to innovation and innovation capabilities, while areas such as marketing and customer knowledge are vitally absent in the literature. In any international acquisition, such knowledge transfer would be of fundamental importance, given the acquisition motive to reach new markets or customers. Two case studies on the transfer of knowledge about customers following international acquisitions are provided. The case illustrations point to a focus on knowledge transfer on strategic levels in the post-merger integration following international acquisitions, while the operational sales forces’ transfer of knowledge is largely disregarded in practice. Since much of the tacit knowledge about customers is handled on that level, it needs to be recognized and developed. The chapter indicates that raising the awareness of the transfer of knowledge about customers following international acquisitions is important from a practitioner’s as well as a research point of view.

Knowledge transfer considers the company as a dynamic system dealing with different kinds of knowledge. As production becomes more knowledge-based, this increases the potential for capturing and taking advantage of knowledge. On the other side, these factors become more complex and difficulties increase for the effective transfer of knowledge across organizational boundaries.

Research on knowledge transfer has experienced substantial growth in the past 30 years and research on knowledge transfer is still increasing (Kumar & Ganesh, 2009). The literature argues quite unanimously that there is a positive link between knowledge sharing and competitive advantage. This is analyzed in several studies, but according to Dyer and Hatch (2006), this assumption has not been generally proven. In this chapter, we discuss the points of view from different contributions on this subject. In the empirical part of this chapter, we propose the idea that knowledge transfer is a way for organizations to be more competitive and implement changes essential to their survival. This is done by looking at five firms in the meat producing industry in different countries.

Purpose –– The aim of the present study was to shed light on the role of Western expatriates in knowledge transfer processes in foreign subsidiaries in Central and Eastern Europe and the impediments they face in these roles in the context of socio-economic transformation.

Methodology/approach –– The findings are based on qualitative data collected via in-depth telephone interviews with 18 Finnish expatriates across a range of firms and industries –– nine located in Estonia and nine in the Czech Republic.

Findings –– The expatriates performed a wide variety of roles reflecting their use as mechanisms of control, coordination and the transfer of knowledge; however, the extent of their knowledge transfer activities was largely influenced by the MNCs' desired level of subsidiary integration. Challenges in the knowledge transferor role were identified at all three levels –– social, organisational and relational –– with some noticeable similarities and differences across the two countries.

Research limitations/implications –– This study included the views of expatriates only and not the views of other key stakeholders such as host-country employees and managers at headquarters. In order to verify the accounts of expatriates as well as establish a picture of how effective the expatriates are in their knowledge mobilisation roles, future research should endeavour to include other key parties in the knowledge transfer process.

This chapter investigates the antecedents to the development of the three components of subsidiaries’ absorptive capacity (ACAP): recognition, assimilation and application of transferred knowledge in the context of the vertical flow of social and environmental accounting and reporting (SEAR) knowledge from the HQ to acquired subsidiaries. Our analysis is based on an embedded multiple case study of a UK-based MNC, informed by 44 semi-structured interviews and capitalising on agency theory and socialisation theory. Prior knowledge is not a sufficient explanation to the development of ACAP but it is also dependent on organisational mechanisms that will trigger the learning processes. Depending on the nature and degree of the social, control and integration mechanisms, the effects of prior stocks of knowledge on ACAP may vary. Our propositions only hold for one direction of knowledge transfer. The study is based on an embedded multiple case study in one sector which restricts its generalisation. It excludes the specific relationships between the three ACAP learning processes and the existence of feedback loops. Our findings suggest that the HQ’s mix of social, control and integration mechanisms should account for initial stocks of SEAR knowledge. The contribution lies in uncovering the interaction between heterogeneous levels of prior knowledge and organisational mechanisms deployed by the HQ fostering ACAP. We address emerging issues regarding the reification of the ACAP concept and highlight the potential of agency theory for informing studies on HQ-subsidiary relations.

This chapter explained the findings of a research that is aimed at studying the effectiveness of cross-border knowledge transfer from Japanese companies to their business affiliates in Malaysia by looking into Japanese organizational culture and the mediating effect of the business affiliate’s learning intent. By focusing on attributes identified by existing literature, there were three aspects being investigated to study their roles in influencing the effectiveness of cross-border knowledge transfer. These aspects are intensive and extensive job training, employee involvement and human relations, and leadership styles. The results indicate that all three aspects indeed led to a higher learning intention. The research also found that the business affiliates’ learning intent significantly mediates the relationship between organizational culture and the effectiveness of cross-border knowledge transfer. This study provides academicians and human resource managers deeper insights on how to improve knowledge transfer in cross-culture organizations by managing organizational culture more effectively.