The impact of knowledge transfer on MNC subsidiary performance: does cultural distance matter?

2017 ◽  
Vol 15 (1) ◽  
pp. 78-89 ◽  
Author(s):  
Cindy Qin ◽  
Yue Wang ◽  
Prem Ramburuth
2011 ◽  
Vol 2 (2) ◽  
pp. 8-27 ◽  
Author(s):  
Cindy Qin ◽  
Prem Ramburuth ◽  
Yue Wang

This conceptual paper seeks to review the literature on international strategic management, examine the trilateral interactive relations among national culture, subsidiary strategic context and knowledge transfer between China-based subsidiaries and their headquarters. Based on the Resource-Based View (RBV), cross-cultural management theories and other studies of international strategic management, we propose a conceptual model for understanding the interaction between cultural distance and subsidiary strategic context in the knowledge transfer process within MNCs, and ultimately the impact on the performance of subsidiaries. Drawing foundational support from this new model, we explore implications for future research.


2020 ◽  
Vol 8 (3) ◽  
pp. 392-411
Author(s):  
Quoc Trung Pham ◽  
Xuan Kieu Dinh

Objective of the study: Knowledge transferring through Foreign Direct Investment (FDI) enterprises is a strategic policy for the economic development of many countries. However, in the case of Vietnam, the effectiveness of knowledge transfer in FDI enterprises is not clear, especially with the impact of cultural distance between foreign investors and local employees. The main goal of this study is to explore the impact of organizational culture on knowledge transferring in FDI enterprises in Vietnam.Methodology/approach: Based on the original model of Parissa (2003), a research model has been proposed, in which the organizational cultural factors include cultural background, language ability, perceived cultural distance, learning style, and cultural openness. Quantitative research conducted through surveys with 109 respondents, who are working in FDI businesses in Ho Chi Minh City, Vietnam.Originality/Relevance: This research focuses on the direct impact of cultural factors on knowledge transfer at individual level between foreign managers and local employees in Vietnam.Main results: Analytical results showed that three factors had a significant impact on the effectiveness of knowledge transfer, including Cultural openness, Language ability of foreign managers, and Communication distance. Theoretical/methodological contributions: The study helps to test the measurement scales and contributes an empirical study in this field.Social/management contributions: From these results, some managerial suggestions were made to support knowledge transferring between foreign managers and Vietnamese employees.


2021 ◽  
Vol 17 (4) ◽  
pp. 109-125
Author(s):  
Ngoc Anh Nguyen ◽  
Quoc Trung Pham

Knowledge transfer effectiveness is considered one of the most important factors for ensuring the success of any enterprise, especially for multinational enterprises. However, in the case of Japan, the effectiveness of knowledge transfer between Japanese managers and foreign employees is not high. This limited effectiveness is understood as linked to the cultural distance between Japanese managers and foreign employees. The main goal of this study is to explore the impact of organizational culture on knowledge transfer in Japanese enterprises. Quantitative survey research was conducted with 365 respondents, who are Vietnamese labourers working in Japan. Analysis showed that two factors had a positive impact on the effectiveness of knowledge transfer: cultural openness and managers' communication ability. The study draws on these results to make recommend improvements in the knowledge transfer process between Japanese managers and Vietnamese employees.


2016 ◽  
Vol 25 (1) ◽  
pp. 66-75 ◽  
Author(s):  
Mohammad Faisal Ahammad ◽  
Shlomo Yedidia Tarba ◽  
Yipeng Liu ◽  
Keith W. Glaister

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dasun Bhagya Sapuarachchi

Purpose The purpose of this study is to explore a phenomenon in knowledge management that has been given scant attention: the influence of cultural distance on inter-organizational knowledge transfer in the context of multinational companies involving headquarters in the USA and a subsidiary in Sri Lanka. Design/methodology/approach Designed as a qualitative exploratory study, data was collected through in-depth interviews of 15 participants and documents review. Findings The findings of this study implied that the theoretically introduced cultural dimensions shall be relevant to analyze the phenomenon of this study. Consequently, through the findings of this study, it is argued that inter-organizational knowledge transfer in multinational companies is influenced by cultural distance. Research limitations/implications This study theoretically and empirically contributes to the debates on knowledge transfer in knowledge management research in general and, inter-organizational knowledge transfer in multinational companies between headquarters and subsidiaries with respect to the influence of cultural distance in particular, through the light of Trompenaars’ (1993) cultural dimensions theory. Practical implications The findings of this study could motivate the practitioners to take into account: the influence of cultural distance on inter-organizational knowledge transfer, if inter-organizational knowledge transfer happens in similar contexts: multinational companies with a headquarters in the USA (a western context) and a subsidiary in Sri Lanka (a non-western context) in the practical business world. Originality/value This study provides theoretical and empirical insights into the influence of cultural distance on inter-organizational knowledge transfer in multinational companies between headquarters and subsidiaries in the selected context while suggesting various avenues for further research toward the influence of cultural distance on such phenomenon in similar/dissimilar contexts.


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