Theorizing on the Role of Individualism-Collectivism in Tacit Knowledge Transfer Between Agents in International Alliances

Taking insights from the extant literatures in cross-cultural management and organizational knowledge management, this paper explores the role of cultural dimensions of individualism and collectivism in transfer of tacit knowledge between foreign agents. Tacit knowledge transfer is positively influenced by four key factors: absorptive capacity of target unit, source unit’s motivational disposition to share knowledge, cultural compatibility, and the extent of personal communication between foreign agents. It is proposed that the level of transfer of tactic knowledge between agents from collectivist cultures will be higher than the level of tacit knowledge transfer between agents from individualist cultures. It is also proposed that when there is cultural difference between foreign agents, the level of tacit knowledge transfer involving a source from a collectivist culture and a target from an individualist culture will be lower than transfer between an individualist source and a collectivist target. However, the proposed relationships are influenced by factors such as nature of knowledge, expectations of reciprocity, and the quality of interpersonal relationship between foreign agents. Several ideas for overcoming knowledge transfer obstacles and enhancing the effectiveness of knowledge transfer, as well as research implications of the proposed model are also discussed in detail.