Skip to main content
Log in

Towards a model of effective knowledge transfer within transnationals: The case of Chinese foreign invested enterprises

  • Published:
The Journal of Technology Transfer Aims and scope Submit manuscript

Abstract

In this paper Chinese foreign invested enterprises (FIEs) are employed as prototypes to generate a model of how transnationals can transfer both tacit and explicit knowledge between their units as well as between FIEs and the parent organization. We propose that successful intra-organization knowledge transfer depends upon: (1) collective creation of knowledge as intellectual and social capital available throughout the organization; (2) trust-based collaboration among geographically dispersed entities that form the transnational organization; and (3) the willingness and ability of organizational units to use that knowledge. The paper further proposes that organizational knowledge should ideally flow in multiple directions, providing learning opportunities for both investing and host organizations. Implications for transfer of best practices, a specific form of tacit knowledge, are also offered.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1

Similar content being viewed by others

References

  • ‘‘Intel helps establish e-business projects at Tsinghua University.’’ (2000). People’s Daily, October 25, http://fpeng.peopledaily.com.cn/200010/25/eng20001025_53583.html (accessed April 15, 2004).

  • Anand, B. N., & Khanna, T. (2000). Do firms learn to create value? The case of alliances. Strategic Management Journal, 21, 295–315.

    Article  Google Scholar 

  • Argyris, C., & Schön, D. (1996). Organisational learning II: Theory, method and practice. Reading, Mass: Addison Wesley.

    Google Scholar 

  • Barkema, H., Bell, J., & Pennings, J. (1996). Foreign entry, cultural barriers and learning. Strategic Management Journal, 17, 151–166.

    Article  Google Scholar 

  • Bartlett, C., & Ghoshal, S. (1999). Transnational management: Text, cases, and readings in cross border management. New York: McGraw-Hill.

    Google Scholar 

  • Bierly, P., & Chakrabarty, A. (1996). Generic knowledge strategies in the U.S. pharmaceutical industry. Strategic Management Journal, 17, 123–135.

    Google Scholar 

  • Birkinshaw, J., & Hood, N. (2001). Unleash innovation in foreign subsidiaries. Harvard Business Review, 79(3), 3–8.

    Google Scholar 

  • Bontis, N. (1996). There’s a price on your head: Managing intellectual capital strategically. Business Quarterly, 60(4), 40–47.

    Google Scholar 

  • Boyacigiller, N. A., & Adler, N. J. (1991). The parochial dinosaur: Organizational science in a global context. Academy of Management Review, 16, 262–290.

    Article  Google Scholar 

  • Chang, S. J. (1995). International expansion strategy of Japanese firms: Capability building through sequential entry. Academy of Management Journal, 38, 383–407.

    Article  Google Scholar 

  • Chen, M.-J. (2003). Inside Chinese business: A guide for managers worldwide. Boston, MA: Harvard Business School Press.

    Google Scholar 

  • Child, J. (2001). Trust – The fundamental bond in global collaboration. Organizational Dynamics, 29(4), 274–288.

    Article  Google Scholar 

  • Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35, 128–152.

    Article  Google Scholar 

  • Contractor, F. J., & Lorange, P. (2002). The growth of alliances in the knowledge-based economy. International Business Review, 11(4), 485–502.

    Article  Google Scholar 

  • Downes, M., & Thomas, A. (2000). Knowledge transfer through expatriation: The U-curve approach to overseas staffing. Journal of Managerial Issues, 12(2), 131–144.

    Google Scholar 

  • Friedman, T. L. (2000). The lexus and the olive tree: Understanding globalization. New York: Anchor Books.

    Google Scholar 

  • Fukuyama, F. (1995). Trust: The social virtues and the creation of prosperity. New York: Free Press.

    Google Scholar 

  • Ghoshal, S., Korine, H., & Szulanski, G. (1994). Internal communication in multinational corporations. Management Science, 40, 96–110.

    Google Scholar 

  • Goleman, D. (1998). Working with emotional intelligence. New York: Bantam.

    Google Scholar 

  • Granovetter, M. S. (1973). The strength of weak ties. American Journal of Sociology, 6, 1360–1380.

    Article  Google Scholar 

  • Green, C., & Zimmerman, R. (2002). Science and technology policy in action: How GM created a global laboratory network. Technology in Society, 24(1–2), 77–82.

    Article  Google Scholar 

  • Gupta, A. K., & Govindarajan, V. (1991). Knowledge flows and the structure of control within multinational corporations. Academy of Management Review, 16, 768–792.

    Article  Google Scholar 

  • Gupta, A. K., & Govindarajan, V. (2000). Knowledge flows within multinational corporations. Strategic Management Journal, 21, 473–496.

    Article  Google Scholar 

  • Gupta, A. K., & Govindarajan, V. (2001). Converting global presence into global competitive advantage. Academy of Management Executive, 15(2), 45–58.

    Google Scholar 

  • Hamel, G. (1991). Competition for competence and inter-partner learning within international strategic alliances. Strategic Management Journal, 12, 83–103.

    Google Scholar 

  • Hannerz, U. (1992). Cultural complexity: Studies in the social organization of meaning. New York: Columbia University Press.

    Google Scholar 

  • Higgins, C., & Kram, K. (2001). Reconceptualizing mentoring at work: A developmental network perspective. Academy of Management Review, 26, 264–288.

    Google Scholar 

  • Holton, R. (2000). Globalization’s cultural consequences. Annals of the American Academy of Political and Social Science, 570, 140–152.

    Google Scholar 

  • Huber, G. P. (1991). Organizational learning: The contributing processes and the literatures. Organization Science, 2, 88–125.

    Google Scholar 

  • Huntington, S. P. (1996). The clash of civilizations and the remaking of world order. New York: Simon & Schuster.

    Google Scholar 

  • Inkpen, A. C. (1998). Learning and knowledge acquisition through international strategic alliances. Academy of Management Executive, 12(4), 69–80.

    Google Scholar 

  • Jacob, R. (2000). A Chinese clean-up operation. The Financial Times, May 18, p. 18.

  • Johanson, J., & Wiedersheim-Paul F. (1975). The internationalization of firms: Four Swedish cases. Journal of Management Studies, 12(3), 305–322.

    Google Scholar 

  • Jones, A. (2003). Unilever eyes China IPO. The Financial Times, October 3, p. 31.

  • Kale, P., & Singh, H. (1999). Alliance capability and success: A knowledge-based approach. Proceedings of the Fifty-ninth Annual Academy of Management Conference. Chicago, pp. BPS 01–06.

  • Kim, D. H. (1993). The link between individual and organizational learning. Sloan Management Review, 35(1), 37–50.

    Google Scholar 

  • Kogut, B., & Zander, U. (1992). Knowledge of the firm, combinative capabilities, and the replication of technology. Organization Science, 3, 383–397.

    Google Scholar 

  • Kostova, T. (1999). Transnational transfer of strategic organizational practices: A contextual perspective. Academy of Management Review, 24, 308–324.

    Article  Google Scholar 

  • Kraar, L. (1999). China’s car guy. Fortune, October 11, p. 238.

    Google Scholar 

  • Lee, J. S. Y. (1999). Organizational learning in China. Business Horizons, 42(1), 37–44.

    Article  Google Scholar 

  • Lei, D., & Hitt, M. A., & Bettis, R. (1996). Dynamic core competencies through meta-learning and strategic context. Journal of Management, 22(4), 549–569.

    Article  Google Scholar 

  • Levitt, T. (1983). The globalization of markets. Harvard Business Review, 61(3), 92–102.

    Google Scholar 

  • Luo, Y. (2000). Dynamic capabilities in international expansion. Journal of World Business, 35(4), 355–378.

    Article  Google Scholar 

  • Lyles, M. A., & Salk, J. E. (1996). Knowledge acquisition from foreign parents in international joint ventures. Journal of International Business Studies, 27, 877–904.

    Google Scholar 

  • Marcom, J. (1990). Feed the world. Forbes, October 1, 110–114.

    Google Scholar 

  • Nobel, R., & Birkinshaw, J. (1998). Innovation in multinational corporations: Control and communication patterns in international R&D operations. Strategic Management Journal, 19, 479–496.

    Article  Google Scholar 

  • Nonaka, I., & Takeuchi, H. (1995). The knowledge-creating company: How Japanese companies foster creativity and innovation for competitive advantage. London: Oxford University Press.

    Google Scholar 

  • Polanyi, M. (1966). The tacit dimension. London: Routledge and Kegan.

    Google Scholar 

  • Porter, M. E. (1990). Competitive advantage of nations. New York: Free Press.

    Google Scholar 

  • Schumpeter, J. A. (1942). Capitalism, socialism and democracy. New York: Harper.

    Google Scholar 

  • Shenkar, O., & Li, J. (1999). Knowledge search in international cooperative ventures. Organization Science, 10, 134–143.

    Google Scholar 

  • Sorge, M. (2000). GM manufacturing wants to be common. Automotive Industries, 180(2), 75.

    Google Scholar 

  • Szulanski, G. (1996). Exploring internal stickiness: Impediments to the transfer of best practice within the firm. Strategic Management Journal, 17, 27–43.

    Google Scholar 

  • Tsai, W. (2000). Social capital, strategic relatedness and the formation of intraorganizational linkages. Strategic Management Journal, 21, 925–939.

    Article  Google Scholar 

  • Tsai, W., & Ghoshal, S. (1998). Social capital and value creation: The role of intrafirm networks. Academy of Management Journal, 41, 464–476.

    Article  Google Scholar 

  • Uimonen, T. (1998). Intel’s Beijing lab to explore internet. Computerworld Hong Kong, May 8, http://www.cw.com.hk/News/n980508002.htm (accessed April 15, 2004).

  • Weick, K. E. (1976). Educational organizations as loosely coupled systems. Administrative Science Quarterly, 21, 1–19.

    Article  Google Scholar 

  • Zahra, S. A., & George, G. (2002). Absorptive capacity: A review, reconceptualization, and extension. Academy of Management Review, 27, 185–203.

    Article  Google Scholar 

Download references

Acknowledgements

This study is funded in part by the Norwegian School of Management BI in cooperation with Fudan University (Shanghai); The University at Albany, State University of New York; and the U.S. National Science Foundation. We are grateful for comments provided by George Farris, Mingfang Li, and other participants of the Zhejiang University U.S.-China Mini Workshop on Technology and Innovation.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Paul Miesing.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Miesing, P., Kriger, M.P. & Slough, N. Towards a model of effective knowledge transfer within transnationals: The case of Chinese foreign invested enterprises. J Technol Transfer 32, 109–122 (2007). https://doi.org/10.1007/s10961-006-9006-y

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10961-006-9006-y

Keywords

JEL Classification

Navigation