Download files
Abstract
Multinational corporations (MNCs) have been conceptualized as worldwide networks of knowledge acquisition, transfer, and integration across countries (Gupta & Govindarajan, 2000; Szulanski, 1996). Within the MNC network, through knowledge transfer, subsidiaries are playing an increasingly important role in their contribution to the MNC’s firm-specific advantages (Birkinshaw et al., 1998). External to the network, national culture has been viewed as one of the most important environmental variables impacting on knowledge transfer (Bhagat et al., 2002; Holden, 2001). Yet, research into exactly how national culture influences knowledge transfer within MNCs and how MNC subsidiary roles might be affected by the culture distance between MNC home and host countries is scarce. Integrating theoretical perspectives in knowledge management, strategic management and cross-cultural management literature, this thesis investigates how national culture impacts, if at all, on knowledge transfer within MNCs, and examines the relationships between national culture, knowledge transfer, MNC subsidiary roles and subsidiary performance.
Using the IT industry in China as its empirical context, the study employed a mixed methods approach to data collection in order to triangulate and elaborate the findings to reach consensus. Findings from the survey of 36 China-based subsidiaries, along with case studies in two of these companies, confirmed that national culture is an important factor in knowledge transfer. Cultural dimensions and values, and in particular specific values in Chinese culture, were found to have significant impacts on knowledge flows to and from China-based subsidiaries. Language barriers and trust were also found to be important factors in MNC knowledge management practice. In addition, the findings suggest that cultural distance between MNC home and host countries, measured by Hofstede’s (1980, 1993) framework, is significantly and negatively related to MNC subsidiary roles, and moderates the relationship between knowledge transfer and subsidiary performance. Different results were obtained when using Schwartz’s (1994) framework, highlighting the different focuses of the two cultural frameworks. Taken together, these findings have important theoretical and managerial implications for MNC knowledge management and strategic management in a cross-cultural setting.