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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. 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.
    2. 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.
    3. repec:kap:jtecht:v:42:y:2017:i:6:d:10.1007_s10961-016-9513-4 is not listed on IDEAS
    4. 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.
    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. 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.
    7. 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.

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