The Role of Culture on Knowledge Transfer: the Case of the Multinational Corporation

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The role of culture on knowledge transfer: the case of the multinational corporation
Leyland M. Lucas
Department of Management and Business Administration, Morgan State University, Baltimore, Maryland, USA
Abstract
Purpose – This paper aims to look at the issue of culture’s role in knowledge transfer within multinational corporations (MNCs). Studies of MNCs have hinted at the importance of culture to the performance of subsidiaries. Using Hofstede’s cultural dimensions of power distance, individualism/collectivism, uncertainty avoidance, and masculinity/femininity, it is argued that the location of subsidiaries along each of these cultural dimensions will significantly impact the possibility of knowledge transfer occurring between subsidiaries. Design/methodology/approach – The objectives were achieved by providing additional insights into the complex nature of knowledge transfer efforts in MNCs. To do so, a discussion of the challenges associated with the dimensions of culture is presented. These challenges are further complicated by the degree to which the home office is involved in the strategic decision-making process surrounding inter-subsidiary knowledge transfers. Findings – The paper suggests that managers should pursue knowledge transfer activities cautiously. Although these efforts may be supported by the home office, resistance to change and sharing must be carefully managed. Furthermore, knowledge transfer efforts are most likely to be successful if the parties are culturally aligned. And, when this is missing, success is highly dependent upon home office directives and support. Research limitations/implications – This paper forces us to address a critical question: how do subsidiaries deal with the challenges to knowledge transfer efforts posed by cultural differences? While research has looked at various aspects of culture and its impact on

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Lucas can be contacted at: [e-mail] The role of culture on knowledge transfer 275 To purchase reprints of this article please e-mail: [e-mail] Or visit our web site for further details: www.emeraldinsight.com/reprints