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Going the distance: The pros and cons of expanding employees’ global knowledge reach

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  • Shad S Morris

    (Marriott School of Management, Brigham Young University, Provo, Utah, USA)

  • Bijuan Zhong

    (Baruch College, City University of New York, New York, USA)

  • Mona Makhija

    (Fisher College of Business, The Ohio State University, Columbus, Ohio, USA)

Abstract

While some scholars have suggested MNEs to be superior to markets for managing knowledge across geographically distant boundaries, how they actually accomplish this has not been fully considered. We address this void by developing and testing a model that highlights the critical role of organizational incentives in enhancing employees’ internal search and use of knowledge. Data from 166 knowledge-intensive projects support our argument that, in contrast to process-based incentives that influence more local search, outcome-based incentives motivate employee teams to reach well beyond their immediate location, which in turn enhances performance. At the same time, we demonstrate that expanded reach also increases the likelihood of accessing more codifiable knowledge, which can hurt performance. Our model examines the contradictory – and previously unknown – effects of global knowledge reach.

Suggested Citation

  • Shad S Morris & Bijuan Zhong & Mona Makhija, 2015. "Going the distance: The pros and cons of expanding employees’ global knowledge reach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(5), pages 552-573, June.
    • Handle: RePEc:pal:jintbs:v:46:y:2015:i:5:p:552-573
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    Citations

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    Cited by:

    1. Grazia D. Santangelo & Anupama Phene, 2022. "Knowledge sourcing by the multinational enterprise: An individual creativity-based model," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(3), pages 434-448, April.
    2. Allison F Kingsley & Benjamin A T Graham, 2017. "The effects of information voids on capital flows in emerging markets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(3), pages 324-343, April.
    3. 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.
    4. Ma, Danni, 2023. "How does the negotiation between “me” and “we” in professional identity influence interpersonal horizontal knowledge sharing in multinational enterprises: A conceptual model," International Business Review, Elsevier, vol. 32(4).
    5. Ma, Danni & Fee, Anthony & Grabowski, Simone & Scerri, Moira, 2022. "Dual Organizational Identification in Multinational Enterprises and Interpersonal Horizontal Knowledge Sharing: A Conceptual Model," Journal of International Management, Elsevier, vol. 28(1).
    6. Maldea, Radu-Andrei, 2023. "Winning when Going Global – On the Role of Heritage and Strategic Moves for Internationalization Endeavors of Start-ups," Junior Management Science (JUMS), Junior Management Science e. V., vol. 8(2), pages 532-568.
    7. Phookan, Himadree & Sharma, Revti Raman, 2021. "Subsidiary power, cultural intelligence and interpersonal knowledge transfer between subsidiaries within the multinational enterprise," Journal of International Management, Elsevier, vol. 27(4).
    8. Torben Pedersen & Marcus M Larsen & Àngels Dasí, 2020. "Searching locally and globally: Applying Daniel Levinthal’s scholarship to international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1532-1546, December.
    9. Stoian, Maria-Cristina & Tardios, Janja Annabel & Samdanis, Marios, 2024. "The knowledge-based view in international business: A systematic review of the literature and future research directions," International Business Review, Elsevier, vol. 33(2).
    10. 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.
    11. Shad Morris & James Oldroyd & Ryan T. Allen & Daniel Han Ming Chng & Jian Han, 2023. "From local modification to global innovation: How research units in emerging economies innovate for the world," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(3), pages 418-440, April.

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