Interfirm Knowledge Transfer Methods

Abstract

The purpose of this article is to present the results of a survey of 121 American multinational subsidiaries in Brazil. We establish how multinationals transfer knowledge to their local suppliers. Each transfer method identified is analyzed to determine the objective behind the transfer and the mechanisms used in order to do so. We identify four methods. The characteristics of the moderate method are poor reciprocal commitment (from the source and the recipient), poor mastering of the transfer process and low capacity of the source to deal with informal aspects of the transfer. The strategic objectives and the mechanisms associated to this method are limited to those which are common to all the methods. The relational method is characterised by high reciprocal commitment, high capacity of the source to deal with informal aspects of the transfer and limited mastering of the transfer process. The specific objectives are the improvement of knowledge of the source by feed-back effect, the creation of knowledge in common as well as the creation of specific relationships and the use of transfer as a means of implementing strategic objectives. The mechanisms are regular face-to-face meetings, team work, and, in certain cases, training and audit-consulting. The technical method is in direct opposition to the former, and is characterised by high reciprocal commitment, low capacity of the source to deal with informal aspects of the transfer but a high mastering of the transfer process. The objectives are the creation of specific relationships, the implementation of strategic objectives and, in certain cases, a network management strategy. The mechanisms used are mostly documents, training, audit-consulting and a common IT system. The complete method is characterised by high reciprocal commitment, high capacity of the source to deal with informal aspects of the transfer and a high mastering of the transfer process. It aims to serve all the strategic objectives identified and uses a complete range of mechanisms.