Distances, multinational organisational learning, and firm performance: a new perspective

Abstract

In the international business literature, the impact of organisational learning on firm performance in the multinational context is broadly discussed. However, oversimplifications and inconsistencies in theories and empirical analyses to explain the phenomenon hinder overall understanding of a supposed beneficial influence. The purpose of this paper is to discuss when multinational organisational learning generates positive implications for firm performance, in contrast to an observable taken-for-granted positive impact inherent in current research. Drawing on distance dimensions' influence, I revisit the assumptions of the effect of traditional geographic, cultural, and psychic distances on the positive impact of multinational organisational learning on firm performance and offer revised assumptions of the effect of newly identified, contemporary strategic, communication, and content distances. I thus address the importance of the strategic roles of organisational units, their connectivity, and perceptions of various knowledge contents. The implications for further research and practice are also discussed.