The speed of knowledge transfer within multinational enterprises: the role of social capital

ISSN： 1056-9219

Source： International Journal of Commerce and Management, Vol.21, Iss.1, 2011-03, pp. : 46-62

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Abstract

Purpose ‐ The success of knowledge transfer very much depends on a company's ability to effectively manage their knowledge transfer process. The purpose of this paper is to argue that a critical component in understanding knowledge transfer in the international arena is the speed of that knowledge transfer (and those factors that influence that speed) within a multinational enterprise (MNE). Design/methodology/approach ‐ In this paper, social capital theory is used to argue that social capital is related to the speed of knowledge transfer within an MNE. The three dimensions of social capital, i.e. relational, dimensional, and cognitive, facilitate the transfer process and effect the rapidity of technology transfer. Findings ‐ The role of knowledge transfer speed in MNEs knowledge management has been neglected and, yet, the speed of knowledge transfer is critical for MNE organizations to build or maintain their competitive advantage. A critical component in understanding knowledge transfer in the international arena is the speed of that knowledge transfer (and those factors that influence that speed) between different units. Originality/value ‐ This study examines social capital to better understand knowledge management at the intra-firm level of an MNE. The success of knowledge transfer very much depends on a company's ability to effectively manage that knowledge transfer process. Using social capital theory, we argued that the three dimensions of social capital (relational, dimensional, and cognitive) are related to the speed of knowledge transfer from the parent company to the foreign subsidiary.