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Governance Mechanisms for the Promotion of Social Capital for Knowledge Transfer in Multinational Corporations

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  • Paul Gooderham
  • Dana B. Minbaeva
  • Torben Pedersen

Abstract

The aim of this paper is to extend social capital approaches to knowledge transfer by identifying governance mechanisms that managers can deploy to promote the development of social capital. In order to achieve this objective, insights from the micro-level, knowledge governance approach are combined with theory on the determinants of social capital. Three governance mechanisms are identified: market‐based mechanisms, hierarchical mechanisms, and social mechanisms. The findings, based on data from two Danish MNCs, indicate that although the use of social governance mechanisms promotes positive assessment of social capital, hierarchical governance mechanisms constrain its development. The application of market‐based governance mechanisms has no significant effect. In addition, the findings provide evidence that social capital has a positive impact on knowledge transfer.

Suggested Citation

  • Paul Gooderham & Dana B. Minbaeva & Torben Pedersen, 2011. "Governance Mechanisms for the Promotion of Social Capital for Knowledge Transfer in Multinational Corporations," Journal of Management Studies, Wiley Blackwell, vol. 48(1), pages 123-150, January.
  • Handle: RePEc:bla:jomstd:v:48:y:2011:i:1:p:123-150
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    File URL: http://hdl.handle.net/10.1111/j.1467-6486.2009.00910.x
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    Cited by:

    1. Croucher, Richard & Rizov, Marian & Goolaup, Ram, 2014. "The antecedents of direct management communication to employees in Mauritius," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics, pages 2420-2437.
    2. Lei Wang & Jun Li, 2017. "The antecedents and innovation outcomes of firms’ absorptive capacity in global buyer–supplier relationships," The Journal of Technology Transfer, Springer, vol. 42(6), pages 1407-1430, December.
    3. Dasí, Àngels & Pedersen, Torben & Gooderham, Paul N. & Elter, Frank & Hildrum, Jarle, 2017. "The effect of organizational separation on individuals’ knowledge sharing in MNCs," Journal of World Business, Elsevier, vol. 52(3), pages 431-446.
    4. Croucher, Richard & Rizov, Marian, 2011. "Employees’ entrepreneurial contributions to firms in Russia, 1995-2004," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics, pages 415-431.
    5. Barron, Andrew & Pereda, Asier & Stacey, Stephen, 2017. "Exploring the performance of government affairs subsidiaries: A study of organisation design and the social capital of European government affairs managers at Toyota Motor Europe and Hyundai Motor Com," Journal of World Business, Elsevier, vol. 52(2), pages 184-196.
    6. Minbaeva, Dana & Park, Chansoo & Vertinsky, Ilan & Cho, Yeon Sung, 2018. "Disseminative capacity and knowledge acquisition from foreign partners in international joint ventures," Journal of World Business, Elsevier, vol. 53(5), pages 712-724.
    7. Xie, Xuemei & Zou, Hailiang & Qi, Guoyou, 2018. "Knowledge absorptive capacity and innovation performance in high-tech companies: A multi-mediating analysis," Journal of Business Research, Elsevier, vol. 88(C), pages 289-297.
    8. Williams, Christopher & Lee, Soo Hee, 2016. "Knowledge flows in the emerging market MNC: The role of subsidiary HRM practices in Korean MNCs," International Business Review, Elsevier, vol. 25(1), pages 233-243.
    9. Croucher, Richard & Rizov, Marian, 2015. "MNEs and flexible working practices in Mauritius," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics, pages 2701-2717.
    10. Zeng, Rong & Grøgaard, Birgitte & Steel, Piers, 2018. "Complements or substitutes? A meta-analysis of the role of integration mechanisms for knowledge transfer in the MNE network," Journal of World Business, Elsevier, vol. 53(4), pages 415-432.
    11. Sergeeva, Anastasia V. & Andreeva, Tatiana E., 2013. "Knowledge Sharing in Public Sector Organizations: Do Knowledge Management Practices Matter?," Working Papers 791, Graduate School of Management, St. Petersburg State University.
    12. Gabriela Gutierrez-Huerter O & Jeremy Moon & Stefan Gold & Wendy Chapple, 2020. "Micro-processes of translation in the transfer of practices from MNE headquarters to foreign subsidiaries: The role of subsidiary translators," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(3), pages 389-413, April.
    13. Mabey, Christopher & Nicholds, Alyson, 2015. "Discourses of knowledge across global networks: What can be learnt about knowledge leadership from the ATLAS collaboration?," International Business Review, Elsevier, vol. 24(1), pages 43-54.
    14. Jane Menzies & Stuart Orr & Justin Paul, 2020. "SME Internationalisation: The Relationship Between Social Capital and Entry Mode," Management International Review, Springer, vol. 60(4), pages 623-650, August.
    15. Martinkenaite, Ieva & Breunig, Karl Joachim, 2016. "The emergence of absorptive capacity through micro–macro level interactions," Journal of Business Research, Elsevier, vol. 69(2), pages 700-708.

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