Knowledge diffusion in the African context: An institutional theory perspective

Abstract

AbstractMultinational companies have been increasing their investments in Africa as they become aware of the high returns available there. These investments often require relations with African partners and rely on knowledge transfer for their success. For these relations to be successful, we argue that multinationals must eschew the knowledge‐transfer approaches that reflect the ethnocentric assumption that codifiable knowledge can be disseminated with little regard to the unique circumstances of the African context, and by disregarding culturally embedded tacit knowledge. This article offers the conceptual lens of institutional theory as a way to improve the processes of knowledge diffusion and learning. We show how this theory can lead to a better understanding of the process of knowledge diffusion within the African context by requiring foreign investors and expatriates to improve their understanding of the African business environment. We then assess the role of boundary spanners in the diffusion process and identify some circumstances that might impinge on knowledge diffusion. © 2006 Wiley Periodicals, Inc.