Abstract

For many multinational corporations (MNCs), sustainable competitive advantage resides in an MNC’s ability to innovate; that is, to create new knowledge, integrate it with an existing knowledge base and exploit the resulting knowledge bundles across national borders. Traditionally, a key mechanism by which knowledge is transferred across borders and recombined works through expatriate assignments. There is, however, a growing trend towards alternative forms of international assignments, such as flexpatriates, commuters, frequent flyers and self-initiated expatriates. We ask how the use of such non-traditional international assignments affects knowledge creation and transfer in MNCs and hence innovation, which we construe as both idea generation and implementation. Our exploratory study draws on the experiences of five women living in Spain who undertook various forms of international assignment in MNCs with differing administrative heritages, working in consultancy and engineering fields. Our findings point to variations in the type and quality of knowledge generated across different forms of international assignments, and draw attention to the socially embedded, informal interactions underpinning much knowledge transfer and recombination. Our findings are also suggestive of a gendered element to knowledge creation and transfer, and how these activities may be perceived by the senior management of MNCs. Our concluding conjecture is that within each form of international assignment, women’s contributions to the innovative efforts of MNCs may have somewhat less to do with formal management practices, and may even, at times, be in spite of them.

Highlights

  • As major global competitors achieve parity in the scale of operations and their international market positions, the ability to link and leverage knowledge is increasingly the factor that differentiates the winners from the losers and survivors (Bartlett and Ghoshal, 1998, p.14).When faced with growing and intense competition, the most important strength of multinational corporations (MNCs) rarely lies in stand-alone human, financial or physical resources

  • A key mechanism by which knowledge can be transferred across borders and recombined is through international assignments (IAs) of MNC employees

  • We focus on the relationship between the type of IA undertaken, and knowledge transfers and innovation

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Summary

Introduction

As major global competitors achieve parity in the scale of operations and their international market positions, the ability to link and leverage knowledge is increasingly the factor that differentiates the winners from the losers and survivors (Bartlett and Ghoshal, 1998, p.14).When faced with growing and intense competition, the most important strength of multinational corporations (MNCs) rarely lies in stand-alone human, financial or physical resources. Sustainable competitive advantage resides in an MNC’s ability to innovate – that is, to create new knowledge, integrate it with an existing knowledge base and exploit the resulting knowledge bundles across national borders ( Porter 1990; Bartlett and Ghoshal, 1998; Michailova and Mustaffa, 2012; Verbeke, 2013). Innovation in MNCs involves both new technologies and new ways of doing things. What is taken for granted in one organisational unit of an MNC may be an innovation when the requisite knowledge is transferred and applied in another unit or context. All innovations involve some recombination of knowledge. A key mechanism by which knowledge can be transferred across borders and recombined is through international assignments (IAs) of MNC employees

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