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The Dilemmas of MNC Subsidiary Transfer of Knowledge

In: Knowledge Flows, Governance and the Multinational Enterprise

Author

Listed:
  • Jens Gammelgaard
  • Ulf Holm
  • Torben Pedersen

Abstract

To an increasing extent, the success of multinational companies (MNCs) is considered to be contingent upon the ease and speed by which valuable knowledge is disseminated throughout the organization (Hedlund, 1986; Bartlett and Ghoshal, 1989; Gupta and Govindarajan, 1991). Thus, creation of knowledge in a spatially dispersed multinational organization and tapping into advanced local knowledge wherever it can be found are necessary conditions for success in the global marketplace. The implication is that some subsidiaries are supposed to act as bridgeheads (Forsgren et al., 1999) that tap into knowledge created in a local context and subsequently transfer the knowledge to other MNC units where it is of better use. Therefore, some subsidiaries will or ought to have a strategic role in the global organization that reaches beyond their local undertakings (e.g. Gupta and Govindarajan, 1994; Holm and Pedersen, 2000). However, there are obstacles to the internal transfer of knowledge in the MNC, and a number of dilemmas unfold within those subsidiaries that are supposed to ensure internal knowledge transfer.

Suggested Citation

  • Jens Gammelgaard & Ulf Holm & Torben Pedersen, 2004. "The Dilemmas of MNC Subsidiary Transfer of Knowledge," Palgrave Macmillan Books, in: Volker Mahnke & Torben Pedersen (ed.), Knowledge Flows, Governance and the Multinational Enterprise, chapter 10, pages 195-207, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-52387-6_10
    DOI: 10.1057/9780230523876_10
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    Cited by:

    1. Collings, David G., 2014. "Integrating global mobility and global talent management: Exploring the challenges and strategic opportunities," Journal of World Business, Elsevier, vol. 49(2), pages 253-261.
    2. Rabbiosi, Larissa, 2011. "Subsidiary roles and reverse knowledge transfer: An investigation of the effects of coordination mechanisms," Journal of International Management, Elsevier, vol. 17(2), pages 97-113, June.
    3. Li, Xiaoying & Wang, Jue & Liu, Xiaming, 2013. "Can locally-recruited R&D personnel significantly contribute to multinational subsidiary innovation in an emerging economy?," International Business Review, Elsevier, vol. 22(4), pages 639-651.
    4. Persson, Magnus, 2006. "The impact of operational structure, lateral integrative mechanisms and control mechanisms on intra-MNE knowledge transfer," International Business Review, Elsevier, vol. 15(5), pages 547-569, October.

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