Promoting cross-border knowledge transfer for new product development in MNCs: a process view

Abstract

Cross-border knowledge transfer plays an important role in the competitive advantage of multinational corporations (MNCs). However, it can be quite challenging due to cultural differences and lack of trust between organizational units located in different countries. Prior studies have not explored the knowledge transfer process (and its key nodes) in new product development in MNCs. This research aims to understand this process focusing on how knowledge transfer can be promoted through trust and understanding of cultural traits. A qualitative single-case study of an automotive MNC was conducted. I found that for the key nodes of the process, the company leveraged different mechanisms to promote knowledge transfer. These mechanisms facilitated trust and understanding of cultural traits. Headquarters provided key administrative support for these mechanisms. This study contributes to the literature through proposing a process view showing how knowledge transfer can be promoted by different mechanisms in different nodes of the process. In addition, insights were drawn on how to manage trust and the cultural difference across countries.