MNC Strategy, Knowledge Transfer Context and Knowledge Flow in MNEs

33 Pages Posted: 7 May 2019

See all articles by Ajai Gaur

Ajai Gaur

Rutgers Business School - Newark and New Brunswick

Hongjia Ma

Jilin University (JLU)

Baoshan Ge

Jilin University (JLU)

Date Written: April 9, 2019

Abstract

Cross-border flow of knowledge is fraught with many challenges. The complexity associated with the organization of multinational corporations (MNCs) and the information asymmetry in foreign locations pose particular challenges to knowledge flow. Yet, effective transfer of knowledge is critical for the survival and performance of MNCs. Based on an extensive review of the literature, we present a comprehensive framework to understand the difficulties in the smooth flow of knowledge in MNCs. We argue that knowledge flow in MNCs is affected by the nature and characteristics of the knowledge as well as the interaction between individual actor-specific, firm-specific and country-specific factors. We discuss these factors in the backdrop of two factors that affect the knowledge flows – MNC strategy and the knowledge transfer context. We present our theoretical model and discuss the implications for advancing research in this domain.

Keywords: Knowledge Transfer, MNCs, Foreign Subsidiaries, National Differences, Institutional Distance

Suggested Citation

Gaur, Ajai S. and Ma, Hongjia and Ge, Baoshan, MNC Strategy, Knowledge Transfer Context and Knowledge Flow in MNEs (April 9, 2019). Available at SSRN: https://ssrn.com/abstract=3368627 or http://dx.doi.org/10.2139/ssrn.3368627

Ajai S. Gaur (Contact Author)

Rutgers Business School - Newark and New Brunswick ( email )

Newark, NJ
United States

Hongjia Ma

Jilin University (JLU) ( email )

Guilin Road
Chaoyang, Changchun 130021
China

Baoshan Ge

Jilin University (JLU) ( email )

Guilin Road
Chaoyang, Changchun 130021
China

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