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Keywords Knowledge transfer, Service operations, Individual behaviour
Abstract This article develops a new conceptual model of knowledge flows within international service firms. Our model takes explicit account of the critical role of relationships and the individual as being central to the process of knowledge transfer for service firms. The model is then validated with data collected from five international service firms using critical event analysis techniques. The findings reinforce our contention that the individual plays a critical role in the process of knowledge transfer and that relationships form an integral part of this process. The implications of this finding are also discussed
Introduction
Many internationally oriented service firms, such as financial service firms, utilities, legal and consulting firms, have grown rapidly by mergers, acquisitions and franchising. Nevertheless, we know very little about how knowledge is generated, developed and transferred within these organisations during the establishment of foreign operations. There is also little distinction made between different types of service firms in this regard, such as between educational or financial services or telecommunications. This study explores some key issues relating to the process of knowledge flows between parent firms and their foreign market operations. In particular, we focus on the role of the individual as a facilitator in this process (Andersson, 2000). Knowledge transfer and the role of the individual have particular relevance for multinational service firms for two reasons. First, the higher human knowledge involvement embodied in the service industry creates a higher need for relationship development with the parent company, as well as customers, to facilitate knowledge flows (Buckley et al., 1992). Second, services in foreign markets often require more adaptation than goods, and, therefore, a greater need for involvement of the parent company in facilitating the adaptation. Thus, service firms have not only a higher dependence on knowledge flows, but also on individuals within the firm as relationship builders and creators and transmitters of knowledge. This article adds to the literature on knowledge transfer in two ways. First, our approach considers a post entry examination of the internationalisation process of service firms from the perspective of the foreign market operation. Second, we investigate the role of the individual in the foreign market operation and parent company in the process of knowledge transfer....