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Exploring the Effects of Vertical and Lateral Mechanisms in International Knowledge Transfer Projects

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  • Francesco Ciabuschi

    (Uppsala University)

  • Henrik Dellestrand

    (Uppsala University)

  • Philip Kappen

    (Uppsala University)

Abstract

Knowledge is critical for creating and sustaining competitive advantage and in today’s fast-moving international market firms need to leverage knowledge globally. Therefore, one important question becomes what effect different transfer mechanisms have on transfer success. This study investigates 169 international knowledge transfer projects in multinational corporations focusing on the role of hierarchy, heterarchy and IT in terms of effects on knowledge transfer success, that is, efficiency and effectiveness of the transfer project. We find that the effects of the different integrative and coordinative structures on knowledge transfer success are contradictory. Centralization through headquarters involvement is negatively related to knowledge transfer success in both its dimensions, while previous cooperation between subsidiaries has positive effects on transfer effectiveness, but not on efficiency. The use of IT nurtures knowledge transfer success in both dimensions. This study adds to the knowledge about the effects of vertical and lateral mechanisms on the success of knowledge transfer projects.

Suggested Citation

  • Francesco Ciabuschi & Henrik Dellestrand & Philip Kappen, 2011. "Exploring the Effects of Vertical and Lateral Mechanisms in International Knowledge Transfer Projects," Management International Review, Springer, vol. 51(2), pages 129-155, April.
    • Handle: RePEc:spr:manint:v:51:y:2011:i:2:d:10.1007_s11575-011-0068-1
    DOI: 10.1007/s11575-011-0068-1
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    2. Nicolai J. Foss & Torben Pedersen, 2019. "Microfoundations in international management research: The case of knowledge sharing in multinational corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1594-1621, December.
    3. Shui‐ying Jin & Xiao‐lin Zhou & Yung‐ho Chiu, 2021. "The parent–subsidiary knowledge transfer efficiency of Chinese–African multinational enterprises based on a metafrontier epsilon‐based measure model," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 479-492, March.
    4. Esther Tippmann & Pamela Sharkey Scott & Vincent Mangematin, 2014. "Subsidiary managers’ knowledge mobilizations: Unpacking emergent knowledge flows," Post-Print hal-00864324, HAL.
    5. Li, Jingxun & Lee, Ruby P., 2015. "Can knowledge transfer within MNCs hurt subsidiary performance? The role of subsidiary entrepreneurial culture and capabilities," Journal of World Business, Elsevier, vol. 50(4), pages 663-673.
    6. Dellestrand, Henrik & Holm, Ulf & Lindahl, Olof, 2023. "Moving beyond the transfer dyad: Exploring network influences on transfer effectiveness," International Business Review, Elsevier, vol. 32(2).
    7. 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.
    8. Falahat, Mohammad & Lee, Yan Yin & Ramayah, T. & Soto-Acosta, Pedro, 2020. "Modelling the effects of institutional support and international knowledge on competitive capabilities and international performance: Evidence from an emerging economy," Journal of International Management, Elsevier, vol. 26(4).
    9. Najafi-Tavani, Zhaleh & Robson, Matthew J. & Zaefarian, Ghasem & Andersson, Ulf & Yu, Chong, 2018. "Building subsidiary local responsiveness: (When) does the directionality of intrafirm knowledge transfers matter?," Journal of World Business, Elsevier, vol. 53(4), pages 475-492.
    10. Rong (Ratchel) Zeng & Birgitte Grøgaard & Ingmar Björkman, 2023. "Navigating MNE control and coordination: A critical review and directions for future research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(9), pages 1599-1622, December.
    11. Liliana Pérez-Nordtvedt & Debmalya Mukherjee & Ben L. Kedia, 2015. "Cross-Border Learning, Technological Turbulence and Firm Performance," Management International Review, Springer, vol. 55(1), pages 23-51, February.
    12. Wu, Yan & Strange, Roger & Shirodkar, Vikrant, 2022. "Lateral knowledge transfer and foreign affiliate performance: The importance of affiliate strategic roles," Economic Modelling, Elsevier, vol. 116(C).
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    14. Celo, Sokol & Nebus, James & Kim Wang, I., 2015. "MNC structure, complexity, and performance: Insights from NK methodology," Journal of International Management, Elsevier, vol. 21(3), pages 182-199.

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