Knowledge Transfer Across Borders in Multinational Companies

Abstract

Hong Kong S.A.R., China is one of the most economically prosperous areas in the world, with numerous multinational companies (MNCs) operating here. It is of vital importance for MNCs to leverage their knowledge across the entire organization, including both the head office and overseas branches. However, many MNCs struggle with knowledge transfer across borders due to the differences in national cultural and institutional factors. Therefore, this research seeks to explore these factors affecting knowledge transfer in MNCs in the Hong Kong S.A.R., China. Six semi-structured interviews with professional practitioners were carried out. Knowledge is transferred in MNCs mainly by three processes, namely, on-the-job training, knowledge-sharing sessions, and knowledge retention of leaving employees. Cultural differences including language differences, geography differences and power distance, technical factors, and institutional differences, including organizational structure differences, senior management support, and employee motivation do affect knowledge transfer of MNCs. This study adds new insights into knowledge transfer issues across the boundaries of MNCs in Hong Kong. It provides significant managerial implications that are helpful to these multinational organizations to achieve effective knowledge management in the global context to overcome cultural and institutional obstacles.