| Abstract: | Multi‐source knowledge integration, though widely regarded as fundamental for developing new products, remains obscurely understood and a significant challenge for organizations to accomplish. Prior research provides many insights on the approaches by which organizations transfer knowledge; however, how such transferred knowledge gets effectively embodied in products remains uncertain. Also unclear is whether different approaches for knowledge transfer differ in their effectiveness at realizing integration. This study analytically separates the transfer of cross‐border knowledge from its embodiment into products. It examines cross‐border knowledge transfer based on three different approaches: namely, the use of cross‐national teams, cross‐national communication, and cross‐national collaboration in the development of new transnational products. It examines cross‐border knowledge embodiment based on the extent to which new transnational products developed balance standardization with adaptation. The study uses a cross‐sectional survey administered to key members of transnational new product development teams in leading multinational companies across the world. The survey focuses on manufactured products that were developed across several industries: consumer products, consumer durables, and industrial products. Results from 90 new transnational product introductions surveyed reveal that knowledge integration is effective only when knowledge is transferred through cross‐national collaboration, and not when transferred through cross‐national teams and cross‐national communication. As integrating cross‐border knowledge in the development of transnational products involves making difficult trade‐offs for balancing standardization with adaptation, transferring knowledge through cross‐national collaboration stands out as being critical for successful outcomes. Although cross‐national teams and cross‐national communication enhance knowledge flows, they do not result in effective knowledge integration when developing new transnational products. These findings highlight an important point: All knowledge transfer approaches may not necessarily achieve knowledge integration. Hence, it is essential to systematically probe into the interrelationships between knowledge transfer and its effective integration and to identify an underlying set of contingencies that provide insights into when and why some knowledge transfer approaches are better than others at integrating knowledge. |
