Abstract
This paper aims to shed light on the interplay of capabilities and knowledge transfer effectiveness. Adopting a dynamic capabilities perspective, we provide a new angle on knowledge transfers within MNCs. Empirical data on 324 knowledge transfer relationships of MNC units, i.e. headquarters and subsidiaries, was used to test the impact of coordination and systems capabilities on knowledge transfer effectiveness. Our results show that organizational capabilities are vital to increase knowledge transfer effectiveness and that coordination capabilities are moderated by cultural distance. As an extension, we explore some differences between knowledge flow directions in the MNC.
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