Interpersonal similarity as a driver of knowledge sharing within multinational corporations

Knowledge sharing has attracted considerable interest in the context of the multinational corporation. However, although there is evidence to support the view that effective knowledge sharing is fundamental for competitive advantage, we still do not understand clearly enough the enablers and barriers to such knowledge sharing. In this paper, we argue that interpersonal similarity is one key driver behind knowledge sharing within the MNC context. We focus on the similarity of the national-cultural background, shared language, and similarity of organizational status as factors generating homophily. We suggest that such similarity leads to a higher tendency for interaction, increasing the sharing of business knowledge, and driving an aggregate effect of clustering. Based on a synthesis of the literature and a multiple case study of three multinationals, we argue that knowledge flows better within clusters driven by homophily than between them, creating a paradox of homophily.     

When global virtual teams share knowledge: Media richness,cultural difference and language commonality

Technological developments and internationalization have made virtual communication a central part of everyday life in many larger organizations. In recent years this trend has been intensified by travel-budget cuts imposed by the global financial crisis. Accordingly, the use of virtual media for internal knowledge sharing is now more important than ever before. Extant studies have provided useful theories and empirical documentation on how to manage global virtual teams. However, no prior research has examined the interaction of media type with the relation between culture/language and canonical/equivocal knowledge sharing. This is an important omission because cultural and linguistic variations are known to have a great effect on knowledge sharing. We use ethnographic field-study methodology for an exploratory examination of the effects of culture, shared language commonality and media choice on knowledge sharing in a large Danish MNC with particular focus on its Indian subsidiary. Results show that certain types of media are more useful for certain types of knowledge sharing depending on the cultural and linguistic variation between the communicating parties.     

On the different “worlds” of intra-organizational knowledge management: Understanding idiosyncratic variation in MNC cross-site knowledge-sharing practices

This qualitative field study investigated cross-site knowledge sharing in a small sample of multinational corporations in three different MNC business contexts (global, multidomestic, transnational). The results disclose heterogeneous “worlds” of MNC knowledge sharing, ultimately raising the question as to whether the whole concept of MNC knowledge sharing covers a sufficiently unitary phenomenon to be meaningful. We derive a non-exhaustive typology of MNC knowledge-sharing practices: self-organizing knowledge sharing, technocratic knowledge sharing, and best practice knowledge sharing. Despite its limitations, this typology helps to elucidate a number of issues, including the latent conflict between two disparate theories of MNC knowledge sharing, namely “sender–receiver” and “social learning” theories (Noorderhaven & Harzing, 2009). More generally, we develop the term “knowledge contextualization” to highlight the way that firm-specific organizational features pre-define which knowledge is considered to be of special relevance for intra-organizational sharing.     

Strong or invisible hands? – Managerial involvement in the knowledge sharing process of globally dispersed knowledge groups

This paper investigates factors affecting the effectiveness of knowledge sharing in globally dispersed expert groups in a professional service MNC. We specifically focus on possible moderating effects of managerial involvement on the relationships of dispersion and trust with the individual satisfaction with knowledge sharing within such groups. We test our hypotheses in the context of a large multinational software company. This paper contributes to a deeper understanding of how knowledge is shared in globally dispersed settings in the MNC and challenges traditional assumptions on the appropriate level of analysis in studies of knowledge flows within MNCs.     

The relationships between types of network organization and adoption of management mechanisms: an empirical study of knowledge transactions of MNC’s subsidiaries in Taiwan

This paper examines the relationships of various types of network organizations and the adoption of management mechanisms through the application of network theory. We found that strong relationships exist as described within the four hypotheses by empirically evaluating case studies of MNC subsidiaries in Taiwan. Based on “the knowledge transaction density” observed between an MNC’s enterprise group and local firms, the subsidiaries can be classified into three categories of network organization, namely: (1) Self-sufficient, (2) Production- based, and (3) Operation-centered subsidiaries. The literature review suggests that there are four types of mechanisms that MNC headquarters use to control their foreign subsidiaries. These mechanisms are bureaucratic, personnel, performance and cultural controls. This research reports three major findings. Firstly, for Operation-centered subsidiaries, headquarters prefer to adopt two or more management mechanisms simultaneously. Secondly, for Production-based subsidiaries, headquarters prefer to adopt bureaucratic management mechanisms. Finally, for Self-sufficient subsidiaries, headquarters prefer to adopt performance and cultural management mechanisms.     

Actual and Perceived Sharing of Ethical Reasoning and Moral Intent Among In-Group and Out-Group Members

Despite an extensive amount of research studying the influence of significant others on an individual's ethical behavior, researchers have not examined this variable in the context of organizational group boundaries. This study tests actual and perceptual sharing and variation in ethical reasoning and moral intent within and across functional groups in an organization. Integrating theory on ethical behavior, group dynamics, and culture, it is proposed that organizational structure affects cognitive structure. Departmental boundaries create stronger social ties within the group as well as intergroup biases between the groups. Thus individuals will be more likely to share in ethical reasoning and moral intent with members of their own functional group (in-group) than with members of other functional groups (out-group). Additionally, they will perceive that they are more likely to share in ethical reasoning and moral intent with in-group members than with out-group members. Responding to two versions of two ethical scenarios, respondents contrasted their own ethical behavior to their expected ethical behavior of in-group and out-group members. Empirical results confirmed the hypotheses. Organizational group boundaries create actual as well as perceptual sharing and variation in ethical reasoning and moral intent. Furthermore, when comparing perceptual sharing to actual sharing, results show that individuals understate their sharing of ethical reasoning and moral intent with out-group members and overstate their sharing with in-group members. As organizational boundaries can create actual and perceived differences between groups that could lead to inter-group conflict, suggestions for management focus on removing or blurring inter-group boundaries.     

Knowledge flow and boundary crossing at the periphery of a MNC

In this paper, we develop a model of four modes of knowledge flow, two involving knowledge acquisition and sharing, and two involving the localizing, embedding and investment of knowing in practice. We illustrate the model with data from an embedded case study involving a focal China-based subsidiary of a Japanese MNC, its headquarters, and two of its local suppliers. While power asymmetries appeared to have substantial impact on the terms upon which syntactic, semantic and pragmatic boundaries were crossed, successful knowledge transfer and boundary crossing appeared to depend on the willingness and ability of the various parties to engage in joint development of knowledge for mutual benefit.     

The performance effects of vertical and horizontal subsidiary knowledge outflows in multinational corporations

Horizontal and vertical subsidiary knowledge outflows in multinational corporations (MNCs) are argued to be central to effective MNC performance. Building on the knowledge-based view of the firm, we develop a conceptual model to investigate the performance consequences, determinants and interaction effects due to coordination and control mechanisms, of horizontal and vertical MNC subsidiary knowledge outflows. The hypotheses are empirically tested with a dataset comprised of survey and archival data from over 200 MNC subsidiaries. Results indicate that explicitness and communication positively influence vertical and horizontal subsidiary knowledge outflows and that national cultural distance, centralization, formalization, and specialized resources moderate these influences. We also find that knowledge outflows to headquarters and to peer subsidiaries enhance an MNC's financial performance (i.e., return on assets). The results provide substantive evidence as to how vertical and horizontal knowledge operate within MNCs.     

Knowledge development and sharing in multinational corporations: The case of a centre of excellence and a transnational team

In this paper, we link the discussion on the differentiated multinational corporation (MNC) with organisational mechanisms for knowledge development and sharing. The aim is to explore the impact of different organisational mechanisms on knowledge development and sharing. Using case-study data—drawn from the same MNC—to explore two different organisational mechanisms, a Centre of Excellence and a transnational team, the findings illustrate how multifaceted knowledge development and sharing are. The organisational structure of the two organisational mechanisms partly determines whether knowledge development occurs locally or globally. This, in turn, has consequences for how knowledge sharing evolves. The sharing process is like a double-edged sword: how to share globally while allowing for local adaptations or how to share locally while developing global knowledge.     

International management, political arena and dispersed entrepreneurship in the MNC

This paper presents a model of MNC dispersed entrepreneurship based on the concept of political arena. The model extends previous conceptualizations of MNC dispersed entrepreneurship by explaining how remote employees become stimulated to act as entrepreneurs through resolution of internal political arena within the international management context. We identify variables within this context at corporate, subsidiary, and individual levels as antecedents to political arena in the MNC. These are the corporate immune system, inappropriate control, subsidiary requirements differences and cognitive barriers to knowledge sharing. Different types of internal entrepreneurs (Austrian-like and Schumpeterian-like) emerge as a consequence of the different ways in which political arena is resolved. We discuss theoretical and managerial implications of the resultant multi-level model.     

Organizational values and knowledge sharing in multinational corporations: The Danisco case

While the existing knowledge sharing literature, in general, emphasizes the link between organizational culture and knowledge sharing, it remains rather ambiguous about how certain components of the former may shape the latter. This issue is especially relevant to multinational corporations (MNCs), which typically consist of multiple organizational (sub)cultures and whose existence depends, to a great extent, on sharing knowledge across borders. The present study examines the influence of one key component of organizational culture – organizational values – on knowledge sharing. From 2003 to 2007, we studied Danisco, a Danish MNC, to examine the processes of espousement, enactment and internalization of a core organizational value – dialogue. In particular, we studied how these processes influence knowledge sharing behavior among employees. We collected original empirical data using content analysis and a questionnaire-based survey among 219 managers and employees in 11 countries in four continents. We argue that knowledge sharing behavior is not influenced by organizational values per se but by the degree of their internalization by organizational members.     

Dispersed entrepreneurship within multinational corporations: A community perspective

The paper develops a new theoretical perspective on the phenomenon of dispersed entrepreneurship in large multinational corporations (MNCs). We argue that the creation and sharing of knowledge in entrepreneurial initiatives involving MNCs is underpinned by a behavioural theory of entrepreneurial communities and that these communities drive the evolution of the MNC organization. While we do not refute related theories of the organization as a social community or communities of practice providing a basis for learning and innovation, we suggest that a different kind of community facilitates dispersed entrepreneurial behaviours within the MNC. This community links participants by a shared desire to create new knowledge for international competition. To succeed in discovering, evaluating and exploiting new opportunities, managers need to allow and nurture situations of high-boundary porosity. The main characteristics, antecedents and consequences of these communities are identified and presented as a conceptual model.     

Individual attitudes to learning and sharing individual and organisational knowledge in the hospitality industry

The purpose of this study was to test hypotheses about the role of demographic variables in differentiating attitudes towards learning and knowledge sharing and to explore individually preferred media for knowledge sharing and obstacles to knowledge sharing. The study of the 499 respondents working in international tourist hotels in Taiwan shows that the most popular approach that was used to share knowledge was a conversation medium, but that insufficient time was allowed for this to occur. The study concludes that a majority of the respondents, including top managers in the researched hotels, shared operational knowledge. The results here suggest that it could be helpful for top management staff to put more effort into sharing strategic knowledge for the creation of future competitive advantage, rather than engaging in daily routines, i.e. a more strategic focus for the whole hotel would improve long-term success.     

How have Japanese multinational companies changed? Competitiveness,management and subsidiaries

Evidence on the strategies and capabilities of Japanese multinational companies (MNCs) and their subsidiaries points to aspects of established management practices (typically home-grown) that complicate or inhibit adaptation to the demands of global competition since the 1990s. Japanese MNCs have had to respond, amongst other trends, to the switch from production to buyer-driven global value chains, cross-border vertical specialization, global factory strategies and strategic alliances and cooperative relationships. Amongst the factors that might affect the ability of Japanese MNCs to make competitive and organizational transitions are: parental MNC intent and capability in the cross-border transfer of management practices; the impact of host country risk on investment, ownership and entry strategies; measures of institutional difference and the gap in economic development between home and host nations; parent firm–subsidiary and subsidiary–subsidiary power relations and knowledge boundaries; and the evolution of insider networks that might overcome institutional and cultural distances within an MNC.     

New Competence Creation in Multinational Company Subunits: The Role of International Knowledge

It has been demonstrated that more creative innovative activities of subunits of multinational companies (MNCs) rely upon the munificence of local knowledge in the host country. Here, we argue that the strength of international business network connections of a host location influences the potential accessibility of international knowledge and hence tends to widen the domain of new knowledge search that can be successfully undertaken by an MNC subunit. This in turn increases the likelihood of an MNC subunit building new areas of competencies, that is, in fields of competencies which are relatively new to the MNC. Specifically, we suggest that the relevant international business network connections are those involving local actors in the MNC subunit's relevant industry. Moreover, geographical proximity between MNC subunits and their parent company has an inverse U‐shaped relationship with new competence creation by subunits. Using a balanced panel data set on innovative activities conducted abroad by 194 of the world's largest industrial firms from 1975 to 1995, we find support for our expectations.     

The Impact of Origins of Reverse Technology Transfer on MNC Home‐Country Product Development

Reverse technology transfer (the transferring of multinational corporation [MNC] subsidiaries’ technological knowledge to their home country) deserves more executive attention since the source of competitive advantage of MNCs resides in their capabilities to leverage knowledge from different units across borders. This article examines three salient “origins” of reverse technology transfer—headquarters, local constituents, and subsidiary research and development (R&D) activity—and their impact on MNCs’ home‐country product development. We argue that reverse technology transfer from subsidiary R&D activity is more likely to have a positive impact on MNC home‐country product development than the other two origins because reverse transfer from local constituents requires high integration cost, and transfer from headquarters adds little technological novelty. We also develop two contingency hypotheses for the latter two origins to increase their likelihood of positive impacts on home‐country product development. Using a data set of 1,331 Taiwanese MNCs, our empirical evidence provides two important messages to managers: (1) a subsidiary whose technology mainly relies on its R&D would be an ideal target for reverse transfer; and (2) reverse transfer from local constituents and headquarters can be effective when they fit with an appropriate organizational mechanism, such as governance mode and absorptive capacity. © 2016 Wiley Periodicals, Inc.     

Consumers' awareness,acceptance and attitudes towards functional foods in Turkey

The aim of the present study was to investigate consumers' awareness, acceptance and attitudes towards functional foods in Turkey. Eight hundred and eight people participated in this study: aged between 20 and 80 years, 38.5% were male and 61.5% were female. Participants were given a questionnaire and were asked to fill it in by themselves to minimize the influence of the interviewer. Results indicated that socio‐demographic characteristics such as age, education level and income level are important indicators of consumers' awareness and consumption of functional food. The results show that the female respondents were 2.987 times more aware of functional food than the male respondents. Similarly, the likelihood of respondents having awareness of functional food was 1.431 times greater among those who had a higher educational level than among those with a lower educational level. Consumers who used vitamin supplements were 1.228 times more aware of functional food than other consumers. The results show that older respondents were 3.395 times more aware of functional food than younger respondents. Respondents with a history of familial diseases were more likely than others to have consumed margarine with plant sterol, fruit juices fortified with vitamin C, and breakfast cereals fortified with vitamins and minerals. Those with a diet‐related problem were more likely to have consumed cholesterol‐lowering products than those without a problem. As a conclusion, this study has shown that socio‐demographic characteristics such as age, education and income levels, and prices are important indicators that influence consumers' awareness and consumption of functional food. These results suggest that this type of knowledge could affect consumers' interest in functional foods, and therefore educational strategies might be necessary to encourage the consumption of functional foods.     

The role of mentoring in promoting organizational commitment among black managers: An evaluation of the indirect effects of racial similarity and shared racial perspectives

Due to the effort and expense of recruiting black managers, there is a need to maximize the chances of retaining those that are most productive. Effective mentoring may be one avenue to reach this objective by enhancing job satisfaction and organizational commitment. Using the responses of 139 members of the National Black MBA Association (MBMBAA), this study explored the indirect or mediated effects of demographic (i.e. white mentors-black protégés vs. black mentors-black protégés) and attitudinal (i.e. perceived complementary racial perspectives) similarity on the affective commitment of black managers. The results suggest that attitudinal similarity is a more critical factor than demographic similarity in enhancing mentoring-driven affective commitment among black managers. In addition, the results reveal that in certain circumstances demographic similarity can actually have an adverse impact on the career benefits realized from mentoring relationships.     

Organizing for knowledge flows within MNCs

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. Building on this framework, the paper hypothesizes and empirically tests for systematic associations between a subsidiary's knowledge-flow based strategic role and the systems and processes linking the subsidiary to the rest of the corporation. The empirical data, collected from 359 subsidiaries of major US, Japanese, and European MNCs (i) provide strong support to the notion of differentiated knowledge flow roles as well as differentiated systems and processes within MNCs, and (ii) suggest that innovation by foreign subsidiaries is more typically the result of autonomous initiative by the subsidiaries rather than strategic directives issued from corporate headquarters.     

Reverse knowledge transfer from subsidiaries to multinational companies: Focusing on factors affecting market knowledge transfer

Despite increasing research on reverse knowledge transfer (RKT) from subsidiaries to headquarters (HQs), there is no academic consensus on the primary determinants influencing RKT. By incorporating four different facets (i.e., absorption, sharing, implanting, and application of market knowledge) of the phenomenon, we draw new insights into RKT. Through empirically testing the phenomenon in the Korean context, we reveal that market knowledge absorption by subsidiaries is a critical component that influences the knowledge integration mechanisms (KIMs) within MNC networks. Furthermore, KIMs within MNC networks are primary keys for absorptive capacity (AC) of HQs and knowledge relevance between HQs and subsidiaries. Our results extend our understanding of RKT, while also offering useful implications for MNCs that intend to establish subsidiaries in foreign markets. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.