In the world of today, business is no longer limited by national boundaries. The majority of the
world’s large corporations perform a significant portion of their activities outside their home
countries. The rapidly emerging global economy creates numerous opportunities for businesses to
expand their revenues, drive down their costs and boost their profits. At the same time, markets
have become fierce battlegrounds where firms have to fight aggressively for market share with
domestic and foreign competitors. It is commonly accepted that one of the primary sources for
competitive advantage of multinational enterprises (MNEs) in this globalized business environment
is their ability to transfer superior knowledge at the international level1 and to create a “learning
organization”2. To succeed, or at least survive, in the global market-place, organizations need to
adapt quickly to the changing environment and must commit themselves to permanent learning.
This paper presents a general overview of the process of international knowledge transfer within
multinational enterprises. It deals with the problems of organizational knowledge creation and
sharing. A particular emphasis is placed on the implications for international human resource
management practices in managing the international transfer of employees, since global
assignments are recognized hierin as the most important mechanism of transferring tacit knowledge3
across borders. As the sharing of easily codifiable knowledge is relatively easy to manage, the
means of transferring it are not focused on in this study. [...]
1 See, for instance, Kogut, B. and Zander, U. (1992): „Knowledge of the Firm, Combinative Capabilities, and the
Replication of Technology“, Organizational Science, Vol. 3, No. 3, pp. 383-397; Kogut, B. and Zander, U. (1993):
„Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation“, Journal of International
Business Studies, Vol. 24, pp. 625-645; Björkman, I. and Forsgren, M. (1997): „The Nature of the International Firm.
Nordic Contributions to International Business Research“, Handelshojskolens Forlag, p. 71.
2 See, for instance, Garvin, D.A. (1993): „Building a Learning Organization“, Harvard Business Review, July/August,
pp. 78-91. For definition of the learning organization see p. 23.
3 For definition of the tacit knowledge see p. 22.
Table of Contents
- 1. Introduction
- 2. The Specific Nature of an MNE
- 2.1. Defining an MNE
- 2.2. Theories Explaining the Existence of MNEs
- 2.2.1. Internalization Theory
- 2.2.2. Monopolistic Advantage Theory
- 2.2.3. Product Life Cycle Theory
- 2.2.4. Dunning's Eclectic Theory
- 2.3. Highlights on the Internationalization Process
- 2.4. Perlmutter's Classification of MNEs
- 3. Theory of the International Knowledge Transfer within MNEs
- 3.1. Defining Knowledge
- 3.2. MNE as a Learning Organization
- 3.2.1. The Concept of Organizational Learning
- 3.2.2. Creation of Organizational Knowledge
- 3.3. A General Model of Intra-Firm Knowledge Transfer
- 3.4. Transferring Complementary Knowledge Between MNE's Units
- 3.5. Knowledge Sharing Mechanisms
- 3.5.1. The Knowledge Transfer Facilitating N-form Structure
- 3.5.2. Expatriation as a Means of Transferring Tacit Knowledge
- 3.5.3. The Role of Expatriation in the Internationalization Process
- 4. The Role of International Human Resource Management in Transferring Tacit Knowledge Across Borders
- 4.1. International Human Resource Management
- 4.2. Linking Organizational Growth Stages of an MNE with Human Resource Planning
- 4.3. Recruitment and Selection of Expatriates
- 4.3.1. Approaches to International Staffing
- 4.3.2. Selection Criteria
- 4.3.3. The Use of Selection Tests
- 4.3.4. Self-Selecting Expatriates
- 4.3.5. Female International Managers
- 4.4. Cross-Cultural Training of Expatriates
- 4.4.1. Defining Culture
- 4.4.2. Hofstede's Value Survey Model and Its Practical Implications
- 4.4.3. Improving Cultural Awareness
- 4.4.4. Preliminary Visits
- 4.4.5. Language Training
- 4.4.6. Practical Orientation Program
- 4.5. Expatriates' Compensation
- 4.5.1. Key Components of an International Compensation Program
- 4.5.2. Approaches to International Compensation
- 4.5.3. Taxation
- 4.6. Expatriates' Adjustment to the New Environment
- 4.6.1. Individual Coping Strategies during the Adaptation Process
- 4.6.2. Spouse Issues
- 4.6.3. Cultural Shock
- 4.6.4. Expatriate Failure
- 4.7. Expatriates' Performance Management
- 4.7.1. Variables Affecting Expatriates' Performance
- 4.7.2. Performance Appraisal
- 4.8. Repatriation
- 4.8.1. Phases of the Repatriation Process
- 4.8.2. Factors Affecting Expatriates' Readjustment Process
- 4.8.3. Practical Repatriate Program
- 4.9. Comparison of IHRM Practices in Various Countries
Objectives and Key Themes
This thesis aims to explore the role of International Human Resource Management (IHRM) in facilitating the transfer of tacit knowledge across borders within multinational enterprises (MNEs). It investigates the complexities of knowledge transfer, particularly tacit knowledge, and how IHRM practices can effectively manage and support this process.
- The nature and characteristics of multinational enterprises (MNEs).
- Theories of international knowledge transfer within MNEs.
- The role of IHRM in facilitating tacit knowledge transfer.
- The challenges of expatriate management in international knowledge transfer.
- The impact of cultural differences on knowledge transfer processes.
Chapter Summaries
1. Introduction: This introductory chapter sets the stage for the thesis, outlining the central research problem of transferring tacit knowledge within multinational enterprises. It highlights the significance of this issue in a globalized economy and introduces the key concepts that will be explored in subsequent chapters, such as the role of international human resource management and the specific challenges of managing expatriates. The chapter establishes the framework for analyzing the complex interplay between organizational structure, knowledge transfer mechanisms, and human resource strategies in achieving effective cross-border knowledge dissemination.
2. The Specific Nature of an MNE: This chapter provides a comprehensive overview of multinational enterprises (MNEs), beginning with a precise definition. It delves into various theoretical frameworks that explain the existence and behavior of MNEs, including internalization theory, monopolistic advantage theory, product life cycle theory, and Dunning's eclectic paradigm. The chapter also explores the internationalization process of MNEs and Perlmutter's classification of different MNE orientations, providing a rich theoretical background for understanding the context within which knowledge transfer takes place. This lays the groundwork for later discussions on the specific knowledge transfer challenges faced by MNEs of varying structures and strategic orientations.
3. Theory of the International Knowledge Transfer within MNEs: This chapter focuses on the theoretical underpinnings of knowledge transfer within MNEs. It starts by defining knowledge itself, differentiating between tacit and explicit knowledge. It positions the MNE as a learning organization, discussing the concept of organizational learning and the creation of organizational knowledge. A general model of intra-firm knowledge transfer is presented, along with an examination of transferring complementary knowledge between MNE units. The chapter significantly emphasizes knowledge-sharing mechanisms, including the n-form structure and the critical role of expatriation in transferring tacit knowledge, providing a theoretical framework for subsequent chapters which focus on IHRM's role in supporting these mechanisms.
4. The Role of International Human Resource Management in Transferring Tacit Knowledge Across Borders: This chapter is the core of the thesis, exploring the crucial link between IHRM practices and successful tacit knowledge transfer across borders within MNEs. It begins by defining IHRM and links organizational growth stages of MNEs to human resource planning. A large portion is dedicated to expatriate management—covering recruitment, selection (including various approaches to international staffing and the use of selection tests), and cross-cultural training (employing frameworks such as Hofstede's value survey model). The chapter meticulously examines expatriate compensation, adjustment processes (including cultural shock and expatriate failure), performance management, and repatriation—offering a comprehensive analysis of how each element of IHRM impacts effective knowledge transfer. The chapter concludes by briefly comparing IHRM practices across different countries, highlighting cross-cultural nuances and implications for knowledge transfer strategies.
Keywords
Tacit knowledge, knowledge transfer, multinational enterprises (MNEs), international human resource management (IHRM), expatriates, cross-cultural management, organizational learning, knowledge sharing, internationalization, compensation, repatriation.
Frequently Asked Questions: A Comprehensive Language Preview on International Knowledge Transfer and IHRM
What is the main topic of this text?
The text focuses on the crucial role of International Human Resource Management (IHRM) in facilitating the transfer of tacit knowledge across borders within multinational enterprises (MNEs).
What are the key themes explored in this text?
Key themes include the nature of MNEs, theories of international knowledge transfer, the role of IHRM in facilitating tacit knowledge transfer, challenges of expatriate management, and the impact of cultural differences on knowledge transfer.
What types of knowledge are discussed, and why is tacit knowledge important?
The text differentiates between tacit and explicit knowledge. Tacit knowledge, being informal and difficult to codify, is highlighted as particularly challenging yet crucial to transfer for MNE success. The text emphasizes how IHRM practices can manage and support the transfer of this type of knowledge.
How does the text define and categorize Multinational Enterprises (MNEs)?
The text provides a formal definition of MNEs and explores various theoretical frameworks (internalization theory, monopolistic advantage theory, product life cycle theory, and Dunning's eclectic paradigm) explaining their existence and behavior. It also examines the internationalization process and Perlmutter's classification of MNE orientations.
What are the key theories of international knowledge transfer discussed?
The text explores several theories, including the positioning of MNEs as learning organizations, models of intra-firm knowledge transfer, and the importance of transferring complementary knowledge between MNE units.
What is the role of International Human Resource Management (IHRM) according to this text?
IHRM plays a central role in facilitating tacit knowledge transfer. The text details how IHRM practices, from recruitment and selection of expatriates to their cross-cultural training, compensation, performance management, and repatriation, directly impact the effectiveness of knowledge transfer.
What aspects of expatriate management are covered in detail?
The text extensively covers expatriate management, including recruitment and selection (various approaches to international staffing and use of selection tests), cross-cultural training (utilizing frameworks like Hofstede's model), compensation, adjustment processes (cultural shock and expatriate failure), performance management, and repatriation.
How does the text address cultural differences in knowledge transfer?
The text acknowledges the significant impact of cultural differences on knowledge transfer. It uses frameworks such as Hofstede's Value Survey Model to illustrate the importance of cross-cultural awareness and training in successful knowledge transfer processes.
What is the structure of the text, and what does each chapter cover?
The text is structured into four chapters. Chapter 1 introduces the research problem. Chapter 2 defines and categorizes MNEs. Chapter 3 focuses on the theory of international knowledge transfer. Chapter 4 is the core, exploring the link between IHRM practices and successful tacit knowledge transfer, covering all aspects of expatriate management in detail.
What are the key takeaways from this text?
Effective IHRM practices are vital for successful tacit knowledge transfer within MNEs. Managing expatriates effectively, including thorough cultural training, appropriate compensation, and careful repatriation planning, is paramount. Understanding the theoretical frameworks behind MNE behavior and knowledge transfer is essential for implementing successful strategies.
What are the key words associated with this text?
Tacit knowledge, knowledge transfer, multinational enterprises (MNEs), international human resource management (IHRM), expatriates, cross-cultural management, organizational learning, knowledge sharing, internationalization, compensation, repatriation.
- Arbeit zitieren
- Agnieszka Osiecka (Autor:in), 2001, International Transfer of Knowledge in Multinational Enterprises. The Role of International Human Resource Management in Transferring Tacit Knowledge Across Borders, München, GRIN Verlag, https://www.hausarbeiten.de/document/11749
