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ABSTRACT
This paper investigates the process of knowledge sharing between the different sites of a multinational company (MNC) and its influencing factors in 8 renowned MNCs in various industries all over the world. Following the research question 'How does the organizational structure influence knowledge sharing across the single sites of MNCs?', we focus on analyzing the organizational context of structure (the degree of decentralization of knowledge management and the existence of communities of practice) and its impact on the technical and personal knowledge flows and the intensity of cross-site knowledge sharing investigated with qualitative research methods.
THEORETICAL BACKGROUND
Empirical investigations of knowledge transfer within the multinational corporation and the factors that drive such transfer have been few (Gupta and Govindarajan, 2000; Phene et al., 2005). Our study aims at overcoming this limitation. The research is based on our recent global study on knowledge management and organizational learning in MNCs, supported by the Austrian Research Fund. The overall goal of the project was to provide a holistic picture of knowledge management in MNCs.
Decentralization of Knowledge Management
MNCs can be regarded as integral parts of a complex configuration of value-creating activities across national borders (Holtbriigge and Berg, 2004). Barlett and Ghoshal (1989) suggest the need for cross-border coordination between interdependent domestic and foreign operations can be handled by the transition to integrated transnational networks. These networks are characterized by a changing role of the headquarters away from hierarchical control of foreign subsidiaries to decentralized decision processes. According to Macharzina et al. (2001), non-hierarchical, network-oriented (so-called heterarchical) modes of international collaboration in MNCs have an organizational logic which is totally different from hierarchical, centre-oriented modes. However, the presence of heterarchy does not mean that hierarchical organization has disappeared in internal networks as hierarchy remains indispensable to reach certain decision quickly (van Wijk et al., 2003). As a matter of fact, organizations that decentralize decision-making may be more adaptive, more innovative, and are more capable to deal with complex environments than those organizations that maintain centralized decision-making and coordination (Macharzina et al., 2001).
In network-oriented models of multinational organizations there is strong orientation towards the global acquisition and use of knowledge. Knowledge about the whole company should be embedded in all parts of the multinational system....