• No results found

Knowledge transfer in MNCs: Headquarter to subsidiaries in developed & emerging markets

N/A
N/A
Protected

Academic year: 2021

Share "Knowledge transfer in MNCs: Headquarter to subsidiaries in developed & emerging markets"

Copied!
81
0
0

Loading.... (view fulltext now)

Full text

(1)

FACULTY OF EDUCATION AND BUSINESS STUDIES

Department of Business and Economics Studies

Knowledge transfer in MNCs: Headquarter to subsidiaries in developed & emerging markets

Romana Siddique Popy Christina Biswas

2020-2021

Student thesis, Master degree (one year), Credits Business Administration

Master Programme in Business Administration (MBA): Business Management Master Thesis in Business Administration 15 Credits

Supervisor: Maria Fregidou-Malama Examiner: Ehsanul Huda Chowdhury

(2)

Acknowledgment

We would like to take an opportunity to acknowledge all the efforts, support and contribution made in the process of writing this Thesis paper. Throughout this time, we have been provided with valuable guidance, feedback, and timely assistance. Our gratitude especially goes to our supervisor, Professor Maria Fregidou-Malama and our examiner, Professor Ehsanul Huda Chowdhury. Simultaneously, we would also like to appreciate Professor Daniella Fjellström for her initial support and motivation in the process of topic selection for the study. We are very obliged for all our course mates in providing us with some constructive feedback and comments during the seminars by sharing their knowledge and viewpoint. All your contributions helped us in enhancing our knowledge.

Moreover, we would like to thank all the managers of Syntronic, Sandvik, WNS Global Services, Company X, DHL, and Tripadam Logistics for devoting their precious time and sharing their experiences as well as information towards the conduction of this particular study.

Last but not the least, bundles of thanks to our family members and friends for their cooperation, encouragement and being our strength throughout this program; Master’s in business administration.

Dedication:

This paper is dedicated to:

Our families who unconditionally supported us throughout this program.

(3)

i

Abstract

Aim: This study aims to analyze the approaches and procedures used in the knowledge transfer process (KTP) in MNCs from Headquarter to their subsidiaries operating in developed and emerging markets.

Method: Qualitative research with an inductive approach is used for this study where multiple case studies are conducted based on six MNCs in which each MNC was considered as an individual case. Data were collected through semi-structured interviews and extant literatures which mainly include scholarly articles.

Findings: Our findings show two main approaches: knowledge-utilization and Knowledge- creation are mainly used in knowledge transfer by MNCs. Knowledge-utilization approach is followed when the process channel is from headquarter to their subsidiaries. Whereas Knowledge-creation approach is used more in the MNCs headquarters and their subsidiaries operating in developed markets as compared to the MNCs subsidiaries operating in emerging markets due to limited access of resources and managerial focus. Furthermore, external factors such as culture, language, geographic location impediment the KTP and other factors like pandemic scenario, expatriate manager and, access to knowledge augment the KTP.

Contribution of the thesis: Through this study, the MNCs at managerial level, in developed and emerging markets can learn the effective way to knowledge utilization as well as can develop innovation capabilities. Moreover, a societal perspective is also considered in this study by highlighting the fact of current Pandemic situation which has completely changed the living and working style but simultaneously reduced the communication gap as we are now more digitally connected with each other.

Recommendations for future research: The use of digital tools in KTP, the KT strategy adopted in crisis situations like COVID-19 can be focused in future studies. Another issue can be recommended that is whether gender difference influences the knowledge transfer process or not.

Keywords: Knowledge transfer (KT), Knowledge transfer process (KTP), Knowledge- utilization, Knowledge-creation, Developed Market (DM), Emerging Market (EM)

(4)

ii

Table of Contents

Chapter 1. Introduction ... 1

1.1. Background of the study ... 1

1.2. Knowledge management ... 1

1.3. Typology of knowledge ... 2

1.4. Motivation ... 3

1.5. Problematization ... 3

1.6. The research gap ... 4

1.7. Aim and Research Questions ... 5

1.8. Delimitations ... 5

1.9. Disposition ... 7

Chapter 2. Theoretical Framework ... 8

2.1. Knowledge based view Theory ... 8

2.2. Agency theory ... 8

2.3. Knowledge ... 9

2.4. Explicit and Tacit Knowledge ... 10

2.5. Knowledge Transfer (KT)... 11

2.6. Knowledge Transfer process (KTP) ... 12

2.7. KTP in MNCs of DM and EM ... 13

2.8. Knowledge-utilization & Knowledge-creation approaches used by MNCs in KTP ... 14

2.9. Factors influencing KTP ... 15

2.10. Theoretical Model ... 18

Chapter 3. Methodology ... 21

3.1. Research Philosophy ... 21

3.1.1. Ontology ... 21

3.1.2 Epistemology ... 22

3.2. Research approach ... 22

3.2.1. Case Study ... 23

3.3. Research strategy ... 24

3.4. Data Collection ... 24

3.4.1. Primary data and Secondary data ... 25

3.5. Selection of companies ... 25

3.6. Interview process ... 26

3.7. Data presentation and analysis ... 29

3.8. Credibility and Reliability... 29

3.9. Ethical consideration ... 30

3.10. Limitations of methodology ... 31

(5)

iii

Chapter 4. Empirical study ... 32

4.1. Companies profiles and operations ... 32

4.2. Case 1 - Syntronic ... 33

4.2.1 Knowledge transfer from headquarter ... 33

4.2.2. Information exchange and knowledge repositories building ... 33

4.2.3. Knowledge transfer to subsidiaries ... 34

4.2.4. Factors influencing KTP ... 34

4.3. Case 2 - Sandvik ... 35

4.3.1. Knowledge transfer from headquarter ... 35

4.3.2. Information exchange and knowledge repositories building ... 36

4.3.3. Knowledge transfer to subsidiaries ... 37

4.3.4. Factors influencing KTP ... 38

4.4. Case 3 - Company X (an anonymous name) ... 39

4.4.1. Knowledge transfer from headquarter ... 39

4.4.2. Information exchange and knowledge repositories building ... 39

4.4.3. Knowledge transfer to subsidiaries ... 40

4.4.4. Factors influencing KTP ... 40

4.5. Case 4 - DHL ... 41

4.5.1. Knowledge transfer from headquarter ... 41

4.5.2 Information exchange and knowledge repositories building ... 41

4.5.3. Knowledge transfer to subsidiaries ... 42

4.5.4. Factors influencing KTP ... 42

4.6. Case 5 - WNS Global services ... 42

4.6.1. Knowledge transfer from headquarter ... 42

4.6.2. Information exchange and knowledge repositories building ... 43

4.6.3. Knowledge transfer to subsidiaries ... 44

4.6.4. Factors influencing KTP ... 45

4.7. Case 6 - Tripadam Logistics ... 46

4.7.1. Knowledge transfer from headquarter ... 46

4.7.2. Information exchange and knowledge repositories building ... 46

4.7.3. Knowledge transfer to subsidiaries ... 47

4.7.4. Factors influencing KTP ... 47

4.8. Comparison and Summary of findings ... 48

Chapter 5. Analysis and Discussion... 49

5.1. KTP in MNCs Headquarter ... 49

5.1.1. Internal source of knowledge ... 50

5.1.2. External source of knowledge ... 51

(6)

iv

5.1.3. Role of manager ... 51

5.2. KTP in MNCs subsidiaries in Developed Markets ... 51

5.3. KTP in MNCs subsidiaries of Emerging Market ... 52

5.4. Factors influencing KTP in MNCs ... 52

5.4.1. Organizational factors ... 52

5.4.2. External Factors ... 54

5.5. Contrasts of KTP in developed and emerging markets ... 57

5.6. Suggested model ... 58

Chapter 6. Conclusion ... 60

6.1. Aim fulfilment ... 60

6.2. Answers to Research Questions ... 60

6.3. Contribution of the study ... 62

6.3.1. Theoretical contribution: ... 62

6.3.2. Managerial implications... 62

6.3.3. Societal contribution: ... 62

6.4. Limitations ... 63

6.5. Future study and recommendation ... 63

References ... 65

Appendices ... 70

(7)

v

List of Figures

Figure 1 - Disposition of the study ... 7

Figure 2 - Organizational Learning Process ... 13

Figure 3 - Knowledge transfer from headquarter to subsidiaries in DM & EM ... 19

Figure 4 - Inductive approach in Qualitative research ... 23

Figure 5 - Model of knowledge transfer from MNCs HQ to subsidiaries in DM & EM ... 58

List of Tables

Table 1 - Characteristics of tacit and explicit knowledge ... 10

Table 2 - Modes of the Knowledge Creation ... 11

Table 3 - Glimpse of interviewed company and representative ... 26

Table 4 - Interview Schedule ... 27

Table 5 - Interview questions linked to theories and to Research Questions ... 28

Table 6 - Summary of empirical finding... 48

(8)

vi

Abbreviation:

KT- Knowledge Transfer

KTP- Knowledge Transfer Process HQ- Headquarter

EM- Emerging Marker DM- Developed Market KBV Knowledge-based view RoM- Role of Manager

(9)

1

Chapter 1. Introduction

The first chapter includes the background study of the topic followed by the knowledge management and typologies of knowledge. It further states the research gap including motivation to study this field, problematization, aim along with research questions and delimitation to the study.

1.1. Background of the study

Knowledge transfer is the process of providing access to and exchanging knowledge (Kuiken &

Sijde, 2011). Knowledge can be obtained from various sources such as from the workplace and education institution. In organization, knowledge transfer from and to the subsidiaries and headquarters can be through communication which is an interactive and iterative process. The knowledge transfer to emerging market subsidiaries are competitive advantages for multinational companies (MNCs). Because, according to L. & N, (2019) the global knowledge flows and capabilities are the most effective tool for the companies who are expanding and crossing the borders. After crossing the border, it depends on the organization, how they are managing the internal knowledge and competence. While describing the utilization of employees’ competence in the global market, Wu, et al., (2007) found that organizations have the power to exploit the knowledge by doing nothing or can utilize it to explore new issues. Researchers found about MNCs that they are more consciously engaging resources of expertise and skills to create their business friendly and profitable strategy to sustain in the competitive market. However, advancing the ability of emerging market small and medium sized enterprises (SMEs) to learn, absorb new technologies, and grow are some of the greatest challenges in economic development and to theories of knowledge transfer (McDermott & Pietrobelli, 2017). Because emerging markets have more potential to grow and learn from the developed markets despite having other shortcomings. Before transferring knowledge within headquarters and subsidiaries it is important to know about the knowledge management in organization.

1.2. Knowledge management

Knowledge management plays a starring role here as the practice and principles of management developed throughout the twentieth century, managing knowledge became a central focus for several management areas, notably technology management, information systems management, human resource management and new product development (Grant, 2016). From the discussion of knowledge management theories by Grant (2016), the contribution of managerial activities as

(10)

2

well as overall function of the organization got an impactable influence by the Knowledge-based view. Various research has analyzed variables related to Knowledge management within the organization such as knowledge transfer between firm and customers, integration knowledge into goods and services, knowledge-creation and knowledge acquisition within the firm. This argument, highlighting the potential importance of knowledge as a strategic resource, has brought the transfer of competence across units into focus as a central challenge for MNC management (Björkman, et al., 2004). To operate international business, it is essential to manage the internal and external knowledge by deploying organizational strategies. Many organizations developed their core knowledge management tool as a means of sustain in the market. Thus Shannak (2009) argues that Knowledge management (KM) has become a common term in the twenty-first century, as it has been applied to a wide spectrum of activities and areas with the purpose of managing, creating and enhancing intellectual assets. After knowing the importance of knowledge management, it is time to find out the various types of knowledge.

1.3. Typology of knowledge

There are different types of knowledge in organization that enable it to transform from local to global. Based on fundamental character, organizational knowledge is mainly two types: tacit knowledge and explicit knowledge (Hislop, et al., 2013). Koenig (2012) suggested that explicit knowledge means information or knowledge that is set out in tangible form. This also suggested that explicit knowledge is transferable at a minimum cost. The digital revolution and new information and communication technologies (ICT) have vastly increased firms’ access to explicit knowledge and their capacity for storing, transferring, and utilizing such knowledge (Grant, 2016). On the other hand, tacit knowledge is the personal and context-specific knowledge of a person that resides in the human mind, behavior, and perception (Duffy, 2000). It also suggests tacit knowledge is intangible in nature and explicit knowledge is fairly visible and easy to identify.

It is embedded within individual skills and know-how and the routines and culture of organizations is difficult to transfer, but critically important as the foundation for competitive advantage (Grant, 2016). The most challenging part of an organization is to protect the tacit knowledge from replication and imitation from the competitors. In our study we have focused on both tacit knowledge and explicit knowledge which refer to subjective as well as related to human competences and experiences in a particular context (Ogulin, et al., 2020).

Knowledge and capability fulfil each other. Capabilities refers to the expertise on certain work, in other words skills used for Research and Development (R&D) (Richard B. and Alina D., 2006).

Combining knowledge and capabilities in the organizations bring the targeted objective and

(11)

3

higher the expectation to achieve more. In any company, a knowledgeable and capable employee is an asset. With the dynamic capabilities and knowledge, MNCs can travel to global markets.

1.4. Motivation

The differences in the knowledge transferring approaches in MNCs headquarters and their subsidiaries operating in various markets is under study. Zhanga, et al., (2019); asked for further research related to the contribution of knowledge-creation approach in MNCs innovative performances which motivated us to investigate the differences in the knowledge transfer process that exist in the subsidiaries of MNCs operating in developed and emerging markets.

Therefore, from our assessments, we found that the influence which managerial perceptions about the internal environment (e.g., policies, employee management factors) have an impact on the internationalization commitment of a firm. Also, since the enterprise's internal environment is different depending upon the country of operation, therefore, to examine the process of knowledge transfer as well as the factors influencing the process in MNCs to their subsidiaries while operating in different markets is our investigation topic.

1.5. Problematization

Multinational corporations (MNCs) face various challenges when they establish their subsidiaries in different markets (Tippmann, et al., 2017) and need to make necessary adjustments during the process of knowledge management which is comparatively different in context to external as well as internal environment. The theoretical development and empirical evidence are limited in the research areas of knowledge transfers on the performance implications of both headquarters and peer subsidiaries (Li & Lee, 2015). Therefore, findings related to knowledge transfer in the subsidiaries of MNCs operating in different markets needs to be explored. Further exploration is required to find the differences in managing knowledge transfer due to the impact of an external as well as internal organizational environment of the subsidiaries operating in developed and emerging markets.

For management purposes, Organizational knowledge which may include the information, skills and capabilities is being studied and analysed at various levels (Baskerville & Dulipovici, 2006).

The communication with the employees within the subsidiaries and headquarters is the key to realize the necessary changes required. Therefore, it becomes very essential to understand the various channels used in transferring knowledge within MNCs headquarters and their subsidiaries operating in developed as well as emerging markets.

(12)

4

1.6. The research gap

After reviewing literature relevant to the knowledge transfer process in MNCs we found that various types of knowledge sharing in MNCs is under discussion by scholars and researchers. For instance, Ingmar Bjorkma, Wilhelm Barner-Rasmussen and Li Li in 2004 published an article on

“Managing Knowledge Transfer in MNCs: The Impact of Headquarters Control Mechanisms”, which was conducted on MNCs of Finland and China inter-unit knowledge flow and its influence on their subsidiaries. They developed three hypotheses linked to the headquarter and their subsidiaries focusing on the mechanism of transfer knowledge. Either it is greater from the subsidiaries to other corporate units when evaluating the performance of the subsidiaries, determining the financial compensation of subsidiary senior management or the number of foreign managers. Here, the author’s focus was the headquarters control and their subsidiary while variations of knowledge transferred process in MNCs subsidiaries operating in developed as well as emerging markets. The authors asked for further studies related to the various types of knowledge such as tacit knowledge which may impact the MNCs capabilities as well as the role played by the enterprisers culture while knowledge being transferred between the headquarter and its subsidiaries.

Another research done in the same field of study by Jingxun Li and Ruby P. Lee in 2015 as a continuation and extended knowledge of Björkman, et al., (2004) published their research work with the title, “Can knowledge transfer within MNCs hurt subsidiary performance? The role of subsidiary entrepreneurial culture and capabilities”. In this article, the authors discussed knowledge transfer and its effect on the capabilities among headquarters, subsidiaries and peer subsidiaries functioning in emerging markets like China. They found that the entrepreneurial culture has a direct impact on the subsidiaries. The missing aspect of study was mainly related to knowledge transfer among MNCs subsidiaries in developed and emerging markets. Furthermore, more investigation was asked by the authors linked to the relationship of outward flow of knowledge transferred in between MNCs, their subsidiaries through foreign managers. Karl Gustaf Svanström, 2016 presented an article on Creation, Transfer and Utilization of Knowledge:

A Case Study of the “Knowledge Gardening” Process for Survival in which the author indicated for future research on the knowledge process and communication in internationalization. He also left a question in his article to find out the approaches used in MNCs.

Ajai S. Gaur, Hongjia Ma and Baoshan Ge have done a research in 2019 on MNC strategy, knowledge transfer context, and knowledge flow in MNEs. The authors urge to take into consideration the multi-level factors which influence the flow of knowledge in MNCs because it was not discussed in extant literatures. While exploring on Impact of subsidiaries' cross-border

(13)

5

knowledge tacitness shared and social capital on MNCs' explorative and exploitative innovation capability by Sheng Margaret L., Hartmann Nathaniel N., 2019, it is suggested to find out the influence of factors in headquarter and subsidiaries in articulation of knowledge transfer in MNC explorative and exploitative innovation capability. Another recent research done in 2019 by Feng Zhanga, Guohua Jiangb and John A. Cantwell related to the similar field of study in which geographical factors cause the differences in the performances due to the adaptability of new, innovative and creative knowledge transfer between parent companies and their subsidiaries.

Majority of the selected organizations studied for supporting their developed hypothesis were from the developed market and the impact of the developed and emerging markets on MNCs knowledge transfer was deliberately not covered by the authors. Therefore, to analyze the KTP and the factors influencing the process, we have referred to the mentioned literatures which directly indicated the gap.

1.7. Aim and Research Questions

The aim of this study is to analyse the approaches used in transferring knowledge within MNCs through headquarters to their subsidiaries operating in developed as well as emerging markets.

To fulfil our aim following are the research questions of the study:

RQ1: How do MNCs transfer knowledge to their subsidiaries operating in developed and emerging markets?

RQ2: What factors influence the knowledge transfer process from MNCs Headquarters to their subsidiaries?

1.8. Delimitations

This study is limited to the following diameters:

● This study does not include all the variables of knowledge management such as knowledge transfer between firm and customers, integration knowledge into goods and services, knowledge retention, knowledge spillover outside the organization. Instead, only focuses on subcomponents i.e., knowledge-utilization approach and knowledge-creation approach used in MNCs while transferring knowledge to their subsidiaries in both developed and emerging markets. Moreover, the factors influencing the KTP from headquarters to their subsidiaries.

(14)

6

● This study includes the managerial perspective of knowledge sharing including management and therefore does not include the perspective from the employees and customers.

● Our main emphasis is on tacit knowledge exploration within as well as inter organizational units which is more involved in exchanging knowledge. Explicit knowledge is also covered as a part of the study.

● This study focuses only on the vertical knowledge transfer which is from MNCs headquarters to their subsidiaries and does not include the vice-versa process as well as the horizontal knowledge transfer (in between the peer subsidiaries)

● Due to Covid-19 we were unable to get access to one particular MNC and their subsidiaries operating in developed and emerging markets. Therefore, we have used 6 case studies including different MNCs headquarters in Sweden, India and the subsidiaries from developed and emerging markets such as India, Sweden, and one of the emerging markets in order to support our study.

(15)

7

1.9. Disposition

Figure 1 shows the outline of our study. The study is divided into 6 chapters. Chapter 1 presents the background of the study with the research gap and motivation, aim and research questions.

Chapter 2 is the review of the literature with the relevant theories to support the theoretical model.

Chapter 3 is the methodology section followed by the research approach, data collection and analysis. Empirical study presented in chapter 4 with the collected data. In chapter 5, the analysis is illustrated based on the data collected in chapter 4 and the theories discussed in the literature review chapter. The concluding chapter 6 stated aim fulfilment and answers to the research question, followed by discussing the academic contribution, societal contribution, and managerial implication with future recommendation.

Figure 1 - Disposition of the study

Source: Authors own

•Background | Knowledge Management| Types of Knowledge

•Motivation|Problematization|Research gap |Aim | Delimitation

Chapter 1 - Introduction

•Existing theories

•Theoritical Framework

Chapter 2 - Literature review

•Research approach & Strategy| Data collection & Analysis

•Credibility & Reliability | Ethical consideration

Chapter 3 - Methodology

•KT from HQ | Information exchange & Knowledge Repository

•KT to subsidiaries| Factors influencing KTP

Chapter 4 - Empirical study

•KTP in MNCs HQ|KTP in MNCs subsidiaries|Factors influencing KTP

•Contrasts in KTP | Suggested Theoritical model

Chapter 5 -

Analysis and Discussion

•Aim fulfiment | Research question answer | Contributions

•Limitations | Recommendations for future study

Chapter 6 -

Conclusion

(16)

8

Chapter 2. Theoretical Framework

Chapter two is about the theories which back our study supported by previous articles.

Knowledge based view and agency theory both fit to our topic and will show how those connect to our study. This chapter is also about the background of the study covering all the variables on which our study is based such as Knowledge and its types (explicit, implicit) and approaches (knowledge-utilization, knowledge creation). Furthermore, it covers the knowledge transfer processes (KTP) in MNCs operating in developed markets and emerging markets, the factors influencing KTP in MNCs followed by the conceptual model reflecting the area of our study.

2.1. Knowledge based view Theory

In order to understand the knowledge transferring process within the organizational units being operated in different markets, it is essential to know the knowledge-based practices within the MNCs which mentor innovation and technology development (Lupton, et al., 2016). The knowledge-based view theory (KBV) is a developed form of Resource-based view of the firm which has been developed by the writer such as Spender (1996), Kogut and Zander (1996) and Grant (1996) by Hislop et al., (2013, p.17). There Hislop, et al. (2013) wrote related to this theory that there are two main principles: one presumes that the type of knowledge which is hard to duplicate or copy and becomes an important source of competitive advantage of the firm. The second assumes that the firm yields more productive tools than the market in the transferring and homogenizing knowledge between individuals. KBV has a profound influence on the processes and techniques for managing knowledge within organizations, and on how organizations should be designed in order to increase the effectiveness with which knowledge could be created and applied (Grant, 2016).

The knowledge-based view of the firm refers to the existence of the firms due to their effectiveness in sharing and transferring knowledge compared to other entities in the market (Zhang et al., 2019). Organizations go global and companies become Multinational Corporations by crossing borders and expanding business to different parts of the world. In the context of knowledge-based view the firm subsists in MNCs due to their capability to transfer knowledge within their own boundaries (Gaur et al., 2019) as well as to their subsidiaries in a more efficient way.

2.2. Agency theory

(17)

9

Another popular theory “Agency theory” is used to explain the knowledge sharing in MNCs and their subsidiaries. Agency theory refers to the interest of headquarters (the principal) that a subsidiary (the agent) with valuable capabilities contributes to the competence development of other MNC units (Björkman, et al., 2004). Agency theory (Jensen and Meckling, 1976;

Eisenhardt,1989) has lately found increasing use in MNC research (e.g., Roth and O’Donnell, 1996; Chang and Taylor, 1999; O’Donnell, 2000) (Björkman, et al., 2004). Those authors discussed agency theory while discussing MNC headquarters and their subsidiaries knowledge transfer. This theory is also used to solve the problems that arise within subsidiaries and headquarters. When Headquarters have mechanisms to control foreign subsidiaries in order to reduce the problems and smooth relations, they use agents which refers to agency theory. It is found by Björkman, et al., (2004) that MNC headquarters can indeed successfully use certain organisational mechanisms to enhance knowledge transfer, and agency theory appear relevant for predicting intra- MNC knowledge flows. The study also shows that HQs apply various methods to run the subsidiaries by setting some standards. It turns out that MNC headquarters can influence the flow of subsidiary knowledge by tailoring the criteria used to evaluate subsidiary performance and implement corporate socialization mechanisms (Foss & Pedersen, 2004).

In our study, we choose this theory as it supports the headquarter and their subsidiaries knowledge flow mechanism as well as solves the internal issues.

2.3. Knowledge

Knowledge is hard to define and a matter of debate of philosophical epistemology. It can be intangible and physical both based on nature. However, one of the most accepted definitions about knowledge is that knowledge is a dynamic human resource of justification of the personal beliefs to obtain the truth (Nonaka, 1994). Baskerville & Dulipovici (2006) refer, knowledge is a fluid mix of framed experience, values, contextual information, and expert insight that provides a framework for evaluating and incorporating new experiences and information. In the organization when communicating with one unit to another, the information and the contents are considered as knowledge. Knowledge refers to a group of skills and information gained from learning or experience, which shows the perception of a specific subject (Li & Lee, 2015).

(18)

10

2.4. Explicit and Tacit Knowledge

Knowledge has different dimensions and kinds. Generally, two types of knowledge are discussed in the below table 1 i.e., Tacit and Explicit. In the below table 1 the characteristics of tacit knowledge and explicit knowledge are presented:

Table 1 - Characteristics of tacit and explicit knowledge

Source: Hislop, et al., (2013, p. 19)

Explicit knowledge is easy to transfer, store and share with others as presented to table 1.

According to Hislop, et al., (2013), explicit knowledge is objectifiable and codifiable (Ogulin et al., 2020) which can have the appearance of documents, diagrams or digital form. That means, it can be predicted and formalized in organizational routine. Explicit knowledge is transferable at close to zero marginal cost (Grant, 2016) as it is easy to handle, transfer and share within the organization.

Tacit knowledge is not visible, and it is subjective (Ogulin et al., 2020) in nature and links to a person's capabilities as well as experiences in a specific context according to Table 1. It is strongly embedded in every single person’s action and experiences including the norms, values, and sentiments (Nath, 2015). Although it can be transferred through interaction and communication. Svanström (2016) conducted a research in a company and mentioned that there was genuine tacit knowledge inside the company that had to be visible and understood to make strategies. Ogulin, et al., (2020) discussed three types of tacit knowledge: relational, somatic, and collective. Where relation tacit knowledge is related to the knowledge which does not take an explicit shape due to the complex nature of relationships people share with each other. Somatic tacit knowledge refers to the knowledge that is limited to constraints of the human body’s capabilities. The tacitness property of this type of knowledge is due to the fact that practice is the only way to learn it. Collective tacit knowledge is knowledge situated inside a social group which is approachable to its members only.

(19)

11

Table 2 - Modes of the Knowledge Creation

Source: Nonaka, (1994, p. 19)

The above table 2 presents the modes used in organizations for knowledge creation. Tacit knowledge does not always require language to learn since it can be transferred through observation and interaction. Nonaka, (1994) referred that the key to acquiring tacit knowledge is experience. These interactions can be expounded as tacit to tacit knowledge from the table 2 and therefore as Socialization. When knowledge is transferred from tacit to explicit, it is called Externalization. For example: in organization when meeting minutes shared are converted in tacit to explicit. And when it is from explicit to tacit knowledge it is called Internalization, for example:

during training session learning from training manuals. Nonaka, (1994) argued that internalization has associations with organizational learning, which contributes to the knowledge transfer process. Transformation from explicit to explicit is covered as Combination here in table 2. It can be from different modes of communication, interactions, meetings, documentation and creates a new form of knowledge.

2.5. Knowledge Transfer (KT)

Knowledge can be acquired from literature, books and other sources. Similarly, capabilities or skills are the practice of knowledge. When referring to knowledge inflows, our theoretical focus is the amount of technical, process, and management knowledge and know-how subsidiaries source and learn from local counterparts (e.g., customers and suppliers) and from other units within their global MNC network (Colakoglu, et al., 2013). Notwithstanding the increasing sophistication of external markets, they remain relatively ineffective mechanisms for knowledge

(20)

12

transfer on at least two grounds: one, bulk of the specialized knowledge of any firm exists in a tacit and thereby non-tradeable form; two, market-based transfers of knowledge are often associated with negative externalities such as involuntary expropriation and the risk of creating a new competitor (Gupta & Govindarajan, 2000).

Learning through secondary sources such as other’s experiences can also be considered as knowledge Transfer (KT) (Argote & Miron-Spektor, 2011). It also includes the process in which one unit (e.g., individual, group, department, division, subsidiary) is being influenced by the experience of another is referred to knowledge transferred within organization (Argote, et al., 2000). According to Szulanski (1996), knowledge transfer is a process of an interactive interchange of knowledge in between the source and recipient units which mainly consists of four stages: initiation, implementation, ramp-up and integration. Where initiation and implementation stages links to the knowledge-creation as they lead to all events of decision to transfer knowledge.

These stages are the key move of the knowledge from the source to the recipient. The last two stages (ramp-up and integration) links to the knowledge-utilization where the recipient begins utilizing the transferred knowledge (Minbaeva, et al., 2014).

By the term “Knowledge transfer” in this study, we will be focusing on the interpretation which refers to the knowledge that is interchange between the organizational entity, teams and unit. The term “Organizational learning” and “knowledge transfer” are interchangeably used by various researchers.

2.6. Knowledge Transfer process (KTP)

Within the organization Knowledge transfer refers to a process by which the experience of one unit influences another unit (Argote et al., 2000) where a unit can be an individual, group, department or division. Argote et al., (2011) explains the knowledge transfer process with the help of the given figure 2 in which the process begins with the knowledge creation where the organization’s unit creates knowledge through its own experiences. Oluikpe (2015) discussed the individual’s capacity in creation of knowledge lies in the innate tendency to process the knowledge which was referred to as an endogenic (mind-centered) by the researcher. When the created knowledge is shared with the other unit of the same organization, it is then called knowledge transfer. In short, the process comprises three subprocesses: knowledge creation, knowledge retention and knowledge transfer. These three sub processes are interdependent in the Knowledge Transfer Process (KTP).

(21)

13

Figure 2 - Organizational Learning Process

Source: Argote & Miron-Spektor, (2011, p. 24)

The above figure 2 illustrates an organizational learning process alternatively called the knowledge transfer process in the organization developed by Argote et al., (2011). The figure shows a continuous process where task performance experience is transformed into knowledge which is utilized by the Active context in the organization and ultimately in a result alters the organizational context and influences future experiences. Here, experiences are referred to the emergence in the organizations when the tasks are performed. The environmental context in the figure 2 comprises the external factors of the organization which may include competitors, customers, law regulators and other institutions. These factors influence as well as get influenced by the organization’s learning process. In the organizations including MNCs, the key components such as members, tools, tasks, performances are the main drivers through which organizational learning takes place as well as contribute to knowledge creation, retention and transfer (Argote et al., 2011).

2.7. KTP in MNCs of DM and EM

Knowledge and capability transfer in MNCs operating in developed as well as emerging markets is done mainly for continuous improvement and is vital for their development purpose. In an ongoing process MNCs acquire knowledge from the external sources and internal sources as well which is then later utilized for competing in the international market. In the whole process of

(22)

14

knowledge transfer, MNCs are most affected when it is being implemented and therefore it must be considered as a crucial variable in the entire process when organizations are dealing in the international market.

With the decrease in business hurdles as well as the comparatively low-cost transportation which have made it easier (Bianchi, et al., 2018) for MNCs to operate in emerging markets. The key reason for MNCs existence is their possession of capabilities in transferring knowledge in its intra-units relatively in a more effectual manner than the external market techniques (Gupta and Govindarajan, 2000). According to Deng et al., (2020), Emerging market multinational Corporations (EMNCs) at one side are very firm at their local market but lack behind in terms of latest technologies and understated organizational progress, on the other side they stand at very low ranks in the comparison of MNCs of highly developed markets. Therefore, MNCs from developed markets moving to emerging markets bring positive changes in the later market by injecting progress through knowledge and capabilities transfer process.

2.8. Knowledge-utilization & Knowledge-creation approaches used by MNCs in KTP

Knowledge transfer is the extent to which an MNCs headquarters and their subsidiaries transmit knowledge to each other (Lee, et al., 2008). Therefore, knowledge transfer has been a critical construct in understanding various units within a MNCs such as the headquarters and their subsidiaries (Li & Lee, 2015). The mode of transferring information is different based on the company's nature of operations. An MNCs headquarters and their subsidiaries must transfer their unique knowledge back and forth so that the headquarters can recognize the unique propositions of each host market and can facilitate the development of new products to meet global customer needs (Lee, et al., 2008). Prior research has suggested that subsidiaries not only hold knowledge about their host countries but also provide the opportunity for their headquarters to coordinate with and learn from them (Gupta and Govindarajan 2000).

There are two main processes being followed in the organization concerning knowledge transfer which are knowledge construction (exploration) and knowledge appropriation (exploitation) (Ogulin et al., 2020). The process of Knowledge construction is concerned with creation of knowledge within a particular state of affairs (Oluikpe, 2015). On the other hand, the process of

(23)

15

knowledge appropriation is related to the utilization of knowledge due its usefulness and utilizing this knowledge within a functional state of affairs where it makes sense (Oluikpe, 2015).

Knowledge utilization can also be described as knowledge imitation. By this the focus is whether the MNCs are directing their subsidiaries to imitate the organizational knowledge or not in order to keep the harmony within their subsidiaries and headquarters. Nell & Anderson, 2012; Nell, et al., (2011) found about the knowledge utilization approach that subsidiaries which are highly embedded in their local environments tend to appropriate knowledge from key business relationships, leading to mutual adaptations in products and processes (Colakoglu, et al., 2013).

Collecting information and lessons from the reserved source are considered as knowledge utilization. At codification, those lessons are made explicit and preserved for future learning and utilization (Oluikpe, 2015). MNCs HQ and subsidiaries all utilize those explicit knowledges when it is necessary such as policy of the organization. From this view, knowledge utilization approach can be contemplated as a secondary source of knowledge.

By knowledge creation, we emphasize on using innovative approaches in the communication process. Nonaka & Krogh, (2009) defined knowledge creation as the act of making knowledge created by individuals available, amplifying it in social contexts, and selectively connecting it to the existing knowledge in the organization. Knowledge creation happens when a unit produces new knowledge (Argote et al., 2011) to the organization. Creativity refers to the originality of new ideas and when these ideas are converted into action it is called innovation (Svanström, 2016). In the internationalization knowledge flow, there is a high chance of more innovative ideas in the diverse work environment but at the same time low chance of adopting new ideas. Various related research indicates that variations in organizations’ intellectual capital may have a critical role in the ability to leverage different sources of knowledge and contribute to innovative capabilities (Subramaniam & Youndt, 2005). Knowledge creation is important to transfer information within the MNCs subsidiaries in both developed and emerging markets.

2.9. Factors influencing KTP

In the process of knowledge transfer, organizations face challenges from multiple sources (Gaur et al., 2019) even within its boundaries as well as when it crosses borders. It is challenging for MNCs to maintain the flawless KTP continuously while undertaking the complex nature of communication between the headquarters of MNCs and their subsidiaries (Gaur et al., 2019).

After reviewing various articles, we have broadly selected the following factors which influence the KTP in MNCs.

(24)

16

The factors which influence the KTP within the organization refer to organizational factors. Hall (2001) found that employees who feel that they have been well supported by their organizations tend to reciprocate by performing better and engaging more readily in citizenship behavior.

Therefore, when individuals are encouraged to share knowledge in communities the barriers to knowledge transfer witnessed in cultures that value personal technical expertise and knowledge creation are weakened (O’Dell & Grayson, 1998, p. 157). According to (Argote & Miron-Spektor, 2011) following are the factors which usually influence the KT process within organizations:

● Attributes of the knowledge such as its causal ambiguity (Szulanski, 1996), which refers to the factors that limit the replication in the interconnection of input and output of the organization

● Features of the units involved in the transfer

● Expertise of the source of knowledge

● Similarity or location

● Aspects like quality of the relationship between the source as well as recipient of knowledge (Szulanski, 1996).

Moreover, within the organization, according to Szulanski (1996) based on the recommendations of the previous researchers there are four group of factors which contribute in the process of hardship in transferring knowledge: (a) characteristics of the knowledge transferred, (b) Characteristics of the source, (c) Characteristics of the recipient, (d) Characteristics of the context in which the transfer takes place.

Another factor is linguistic difference. The knowledge which is shared via talking is also considered as a part of KTP where language is a medium and vital tool which empower the knowledge transfer process (Svanström, 2016). MNCs operate in multinational environments and have diversified organizational culture, therefore difference in language prevails within the organization. Difference in language acts as a hurdle in the KTP (Peltokorpi et al., 2014).

According to Peltokorpi et al., (2014), MNCs use strong policies such as Language-oriented HRM practices (Minbaeva et al., 2014) to deal with language differences.

Culture is considered one of the essential factors influencing KTP in the organization and has been defined by many anthropologists in various contexts. It is defined by Hofstede (2011) as:

"Culture is the collective programming of the mind that distinguishes the members of one group

(25)

17

or category of people from others.” Organizational cultures differ in various perspectives compared to national cultures and therefore treated as separate phenomena. An organization is considered as a contrasting identity to the nations and is a social system due to the reason that commonly the employees of the organization are not developed in it (Hofstede, et al., 2010, p.

47). MNCs operate at international level and therefore they come across different cultures as their subsidiaries operate in different parts of the world. Culture varies from region to region within the same country as well as across the borders (Li & Lee, 2015).

The six dimensions of Hofstede are Power Distance, Uncertainty avoidance, Masculinity/Femininity, Long-term/short-term orientation, individualism/collectivism and Indulgence/restrain. The dimensions Individualism/collectivism and indulgence/restrain are not covered in this study whereas those who matches best to this study and reflect the research area are as follow:

1. Power distance Index

It is the extent to which the dependence is connected in decision making of subordinates with their senior heads (Hofstede, et al., 2010, p. 61). In the less power-distance countries, there is little dependency between the two. On the other hand, in larger power-distance countries, the dependency of subordinates and on the bosses is significant. Power and inequality are considered as the elementary facts of the society where Hofstede believes that all societies are unequal in this context, but the difference lies in their level of existence.

2. Uncertainty Avoidance

Hofstede, et al., (2010, p. 189) referred to Uncertainty Avoidance as feelings which are acquired and learned. It is also appropriate to consider the degree of feelings of a member of a particular society to deal with the uncertain situation which are novel, unknown, surprising, different from usual for instance pandemic Scenario.

3. Masculinity Vs Femininity

According to Hofstede (2010, p. 140), the society is considered as “Masculine” if the emotional gender role is played differently by men and women where men are at the assertive pole and consider power, reward, performance and competition more. On the contrary, the society is

“Feminine” if for both men and women modesty, caring and quality life matter.

(26)

18 4. Long vs Short Term Orientation

Long-term orientation is referred to as future orientation (Hofstede, et al., 2010, p. 47) linked to thrift and perseverance. Whereas short-term orientation is referred to events that took place in the past or happening in present (Hofstede, 2011) and it links to the values related to respect for tradition, fulfilling social obligations, and protecting one's 'face'.

Role of Expatriate Managers in the KTP is very important. They play a vital role as a facilitator in the knowledge transfer between MNCs headquarters and their subsidiaries. According to Gaur, et al., (2019) the characteristics of the individual factors which also influence the KTP are:

Ability/Willingness/Motivation, Cognitive Styles, Cultural Intelligence, Demographic Factors and Experience. Based on the researchers’ expatriates are given positions in MNCs for the role of CEOs, structure reproducer, operational element and troubleshooter (Gonzalez & Chakraborty, 2014). He further explained, the expatriates who execute the role structure producer and Operational element have the foremost responsibility in knowledge transfer, role formalization as well as knowledge implementation. The role of CEO performed by the expatriate needs to synchronize and control the knowledge flow and while doing so have to exhibit individualized proficiency as well as mentoring in order to make other subsidiaries to learn from. Finally, the expatriates employed as troubleshooters mainly assigned short period tasks where they are accountable for application of knowledge takes place in the form of training.

2.10. Theoretical Model

The model presented in below figure 3 is developed based on the areas of this research and reflecting the focus of the study. Number of relevant literatures (Rhodes et al., 2008, Szulanski, 1996, Argote & Miron-Spektor, 2011, Li & Lee, 2015, L. & N., 2019, Minbaeva, et al., 2014, Björkman et al., 2004, Zhang et al., 2019, Hofstede, 2011, Svanström, 2016, Peltokorpi et al., 2014 Bdeir et al., 2012 and Lee et al., 2020) are used in developing the model.

(27)

19

Figure 3 - Knowledge transfer from headquarter to subsidiaries in DM & EM

Source: Author’s own

i. Knowledge transfer in MNCs headquarter

The model in figure 3 begins with the Knowledge transfer in the headquarters of the MNCs and focuses on the internal factors influencing the process. This part shows the study of various organizational factors such as IT systems, structured learning strategies, innovative organizational culture, and flexible structure and design (Rhodes, et al., 2008) influencing the entire KT process.

Organizational factors (Szulanski, 1996 and Argote & Miron-Spektor, 2011) are considered as internal factors in the framework. Generally, the knowledge transfer takes place in MNCs and their subsidiaries in two flows i.e vertical and horizontal. The knowledge related to the expertise and skills transferred from MNCs headquarter to their subsidiaries is known as top-down vertical knowledge transfer. Horizontal knowledge transfer is referred to the knowledge flow between the peer subsidiaries (Li & Lee, 2015). This study focuses on vertical knowledge transfer only.

ii. MNCs subsidiaries in Developed and Emerging Market

In the second part of the model in figure 3, we focus on the knowledge transfer (KT) in the MNCs subsidiaries functioning in a Developed and Emerging market. The procedures and strategies being followed by the managers of various departments in order to knowledge management in

(28)

20

their units as well as to the other units of the company. The tacitness of knowledge of transnational subsidiaries raises which increases the strain for both the subsidiaries and MNCs headquarters to communicate, consolidate and apply (L. & N, 2019)

iii. KT from Headquarter to Subsidiaries of developed and emerging market

The third part of the model in figure 3, represents the process of knowledge transfer from the headquarter of MNCs to the subsidiaries operating in Developed markets as well as the subsidiaries operating in an Emerging Market. The differences exist in the absorptive capacity to new knowledge (Minbaeva, et al., 2014, Björkman et al., 2004 and Zhang et al., 2019) as well as the characteristics of source and recipient (Szulanski, 1996) in the MNCs subsidiaries which ultimately affects the knowledge transfer level of every unit. The approach used by the top management of the subsidiaries could be based on the knowledge-utilization and/or knowledge- creation approaches where the prevailing knowledge within the organization is being transferred.

iv. External factors influencing the KT process

The last part of our model in figure 3, refers to external factors which may influence the KT process from MNCs headquarters to their subsidiaries in developed and emerging markets. These factors majorly include culture (Hofstede, 2011, and Li & Lee, 2015), Geographical differences (Zhanga, et al., 2019), language (Svanström, 2016, Peltokorpi & Vaara, 2014 and Minbaeva, et al., 2014) and Pandemic Scenario (Bdeir, et al., 2012 and Lee, et al., 2020).

(29)

21

Chapter 3. Methodology

This chapter comprises the research process being followed, and the details related to the research philosophy, approach and strategy, data collection process, interview process, data presentation & analysis, credibility and reliability, ethical consideration and the limitations to our methodology.

3.1. Research Philosophy

The research philosophy is associated with the expansion as well as the classification of knowledge and specifically developing knowledge in a particular field (Saunders, et al., 2007, p.

101). According to Easterby-Smith, et al., (2015, p. 46) four reasons to be considered in order to understand the importance of philosophical matters; firstly, researcher need to have a clear understanding of epistemology of the research which will be useful in judging their role and also make them able to contribute in a productive manner to the selected field of study. Secondly, it facilitates in opting for appropriate research design in order to collect the best answers to the research questions and interpret them. Thirdly, philosophical knowledge guides the researchers in considering the limitations to the approach and go for that research design which will be practical for the selected field. Lastly, the researchers can get assistance in developing the design which best incorporates the nature of knowledge and selected topic. Therefore, at the initial stage it is essential for the researcher to consider their worldly beliefs which reflect their research philosophy (Saunders, et al., 2007, p. 101).

3.1.1. Ontology

Ontology is concerned with the actuality (truth) and existence (facts) (Easterby-Smith, et al., 2015). In regard to social science, the ontological positions of the study are under debate among internal realism, relativism and nominalism, where the relativism position of the study shows that there is no particular reality which can be brought into light by all means, instead of a particular issue there are various perspectives. More precisely the relativist position presumes that unlike point of views are possessed by various spectators. Out of the three ontologies our study reflects relativism where the observers carry independent viewpoints regarding facts (Easterby-Smith, et al., 2015).

The two aspects of ontology; objectivism and subjectivism discussed by (Saunders, et al., 2007) where the subjectivist view refers to the social fact which is generated through the understanding as well as the resulting measures taken by social actors (Saunders, et al., 2007) linking to a

(30)

22

particular issue. Since this study focuses on the managerial perception about knowledge transfer in an organization and factors influencing, it is being investigated through observation and semi- structured interviews. Therefore, keeping in view the subjective nature of the topic this study is placed at a relativist ontological position.

3.1.2 Epistemology

The theoretical approach which facilitates the researchers in acquiring knowledge in the best possible way by investigating the nature of the world is referred to Epistemology (Easterby-Smith, et al., 2015). Moreover, it is analyzing the justifiable information that adds up to the particular field of study (Saunders, et al., 2007, p. 102). The nature of this research is subjective, therefore interpretivism's position is being followed where human’s viewpoint is given priority. This research philosophy best matches the field of study related to business and management research (Saunders, et al., 2007, p. 107).

3.2. Research approach

The three common approaches to conducting research are quantitative, qualitative, and mixed methods (Williams, 2007). Researchers can gather data to respond to the research questions and the nature of the study. In quantitative approach, researchers work with numerical data.

Quantitative research can be construed as a research strategy that emphasizes quantification in the collection and analysis of data (Bryman & Bell, 2015, p. 26). Creswell (2003, p. 18) states, quantitative research “employ strategies of inquiry such as experimental and surveys and collect data on predetermined instruments that yield statistical data”. The findings from quantitative research can be predictive, explanatory, and confirming (Williams, 2007). In our study, we were not collecting numerical data and surveys hence we did not use a quantitative approach.

Mixed research is the combination of quantitative and qualitative research where the findings of the study are invalid without one another. Both approaches are used in a single study. Williams, (2007) elaborates that researchers collect or analyze not only numerical data, which is customary for quantitative research, but also narrative data, which is the norm for qualitative research in order to address the research question(s) defined for a particular research study. Since our study has no numeric data to combine with narrative data, we are not using this approach.

Qualitative research is described as an unfolding model that occurs in a natural setting that enables the researcher to develop a level of detail from high involvement in the actual experiences

(31)

23

(Creswell, 1994). Qualitative approaches tend to be contextual and generally inductive approaches are used to understand local meanings and rules for behavior (Tracy, 2013). The research approach of this study tends to be an inductive approach as it means that our research has been started by studying multiple cases and later on, we developed abstract concepts (Lapan, et al., 2012). Moreover, this study has exploratory purpose where the focus of the study begins with the broad aspect and with the progress in the research it gradually gets narrowed (Saunders et al., 2007, p. 133). In the below figure 4, the inductive approach in qualitative approach has been given.

Figure 4 - Inductive approach in Qualitative research

Source: Authors own adapted from Tracy, (2013, p. 22)

3.2.1. Case Study

The case study used for establishing the research work can be composed on single or multiple cases. When it comes to concluding the research work, the homogenic as well as dissimilar factors are considered from the studied cases (Saunders, et al., 2007, p. 140). For our research study we have selected multiple case designs due to our preference of collecting data and come to conclusions from the reality derived from multiple cases in order to strengthen the credibility and reliability of our research work. For that we have led the research with 6 case studies. The data collection for a case study is extensive and draws from multiple sources such as direct or participant observations, interviews, archival records or documents, physical artifacts, and audiovisual materials (Williams, 2007). We have used multiple case study because it is interpretive in nature as we have added the explanation along with description, for instance, explaining why the program is implemented in a particular way (Lapan, et al., 2012, p. 266).

(32)

24

3.3. Research strategy

This study strategy is qualitative because Doz (2011) emphasized that qualitative research may enable one to discover the importance of a previously neglected phenomenon or the relevance of a particular theoretical perspective to that phenomenon. Moreover, qualitative research provides a strong inspiration for new ideas and research agendas (Doz, 2011). This qualitative research is designed based on exploratory study which indicates the study itself is new. Since this study intends to present a cross-country comparison of subsidiaries and headquarters procedures of transferring knowledge of an MNC, a relatively unexplored topic, thus we are focusing on exploratory study. Moreover, according to (Babbie, 2020, p. 88) exploratory studies are most typically done for three purposes:

1) To satisfy the researchers curiosity and desire for better understanding, 2) To test the feasibility of undertaking a more expensive study, and 3) To develop the methods to be employed in any subsequent study.

To unleash every detail of the knowledge transfer procedure, we have used idiographic exploration as Babbie (2020, p. 92) refers, it seeks an exhaustive understanding of the causes producing events and situations in a single or limited number of cases.

3.4. Data Collection

The analysis will be based on the data collected through primary source as well as secondary sources which will be very insightful in studying the current knowledge of the internationalization process of the organization growing to emerging markets. To study the practical implications of knowledge transfer between headquarters and their subsidiaries of an international organization we are providing qualitative research on a few Multinational organizations like; Syntronic, Sandvik, WNS Global, DHL, Company X (anonymous name), Tripadam Logistic company.

Syntronic, whose Headquarter operates in developed market like Sweden and in emerging markets like Indonesia, Malaysia and China. We have also selected Sandvik, a Swedish engineering multinational company which has branches in many developing and emerging markets like India, Africa. WNS global company operates in developed as well as emerging markets. The company’s headquarter is in India and we wanted to know if the approach of knowledge transfer differs when action comes from one of the emerging markets headquarter directed to the developed market subsidiaries. DHL is a large MNC and it has subsidiaries in many countries. We collected data from the Swedish branch which is a developed country.

(33)

25

Company X (anonymous name) is also a big USA based MNC, having offices in many countries.

We collected data from one of its subsidiaries in emerging markets. Tripadam Logistics company is an Indian based company which has lots of activities in developed and emerging countries. We managed to collect data through voice call and observation method as we could not record the conversation due to technical problems. Our research is designed with both primary and secondary sources of data.

3.4.1. Primary data and Secondary data

Primary data are the foundation of our study as we get the most insight information from this source. For primary data collocation we have planned some semi-structured interviews having open-ended questionnaires for the managers in the headquarters in developed countries and their subsidiaries operating in the developed and emerging markets. Six interviews have been conducted with the Managers from 6 different multinational companies via Zoom Meeting, Microsoft Teams and What’s App call, which ran for the duration between 40 minutes to one hour. All interviews were recorded with the duly permission except one that was not recorded due to some technical complications. The interview questions were prepared based on the interest of the topic, research gap and some questions came up spontaneously from the conversation. The interview was conducted in English language as the interviewee was comfortable in communicating.

In order to gather data through secondary sources we have used the company's official websites, course books, relevant articles from the well-known international journals and literature mainly from the university database due to the conformity of the peer reviewed articles. We have used the articles reflecting the areas of study relevant to knowledge transfer in MNCS in order to find out the gaps and also back up our study. To know about the company background, we have used company websites also.

3.5. Selection of companies

We have selected MNC headquarters and subsidiaries in both developed and emerging markets because we needed to know the knowledge transfer process and approaches used in two different markets. From the below table 3, it is understandable that we have selected 4 headquarters and 2 subsidiaries of which 2 headquarters are from developed markets, 2 headquarters are from emerging market, 1 subsidiary is from developed market and 1 subsidiary is from emerging market. By doing these we can get a clear communication and knowledge transfer channels within

(34)

26

the MNCs. The reason behind the selection of these companies was that we wanted to access multinational companies who have operations in both developed and emerging markets. Also, we wanted to collect information from the managerial level since they are directly involved in the knowledge transfer process and have adequate knowledge and experience in those respective MNCs.

Table 3 - Glimpse of interviewed company and representative Company

name

Operating country

Operating office

Nature of business

Interviewee designation

Years of experience

Syntronic Sweden (developed Market)

Headquarter Production based

Line Manager of Research and Development

12 years

Sandvik Sweden

(developed Market)

Headquarter Production based

Global

Compensation and Benefit Director

12 years

Company X

*(anonymous name)

Country in Asia (Emerging market)

Subsidiary Service based Manager 3 years

DHL Sweden

(developed Market)

Subsidiary Service based Operation Manager

24 years

WNS Global India (Emerging market)

Headquarter Service based Group Manager 4 years

Tripadam Logistics

India (Emerging market)

Headquarter Service based Operation manager

20 years

* Company X do not want to reveal the position, company, and country name.

3.6. Interview process

The interviews were conducted digitally. We have emailed the contact persons (sample shown in appendix 2) in MNCs with details about our thesis and the confirmation was also received via email (sample shown in appendix 3). As our focus of the study is to gather data through managerial perspective therefore, we have only contacted the managers of the selected organizations. Through our comprehensive email, they were convinced and graciously agreed for the interviews. The interviews were conducted according to their availability and the mode of

References

Related documents

46 Konkreta exempel skulle kunna vara främjandeinsatser för affärsänglar/affärsängelnätverk, skapa arenor där aktörer från utbuds- och efterfrågesidan kan mötas eller

Exakt hur dessa verksamheter har uppstått studeras inte i detalj, men nyetableringar kan exempelvis vara ett resultat av avknoppningar från större företag inklusive

The increasing availability of data and attention to services has increased the understanding of the contribution of services to innovation and productivity in

The general tactics and methods of operation that subsidiaries that operate in smaller well developed markets has received some attention (albeit not extensive), but

By conducting a case study at Bühler Bangalore, subsidiary of the Swiss technology company Bühler Group, including 15 interviews with managers involved in the development

The EU exports of waste abroad have negative environmental and public health consequences in the countries of destination, while resources for the circular economy.. domestically

In other words, EFBGs with focus outside the home region, in contrast to home-region-oriented EFBGs, are more likely to use family managers in foreign subsidiaries located in

Comparing two portfolios between major and emerging markets the results showed that when only non-emerging market currencies are used, about half of the 10- strategy and 50-strategy