Ram Mudambi, Pietro Navarra; Is Term Paper

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The author has connected learning capacity with another major concept known as absorptive capacity, which is described in the words of another researcher as the "ability to recognize the value of new external knowledge, assimilate it, and apply it to commercial ends." But the author doesn't focus much on this aspect of learning and instead discusses the traditional variables such as ambiguity of knowledge, protectiveness factor and motivation level to explain what is it that hinders effective transfer of knowledge.

Concluding remarks:

In this discussion, we studied five important articles on the subject of knowledge transfer within MNC units. Different authors focused on different aspects and problems of knowledge transfer. Mudambi et al. (2004) maintains that knowledge can provide a key leverage point to subsidiaries but they also identify the ways in which MNCs can curtail this bargaining power. Barner-Rasmussen et al. (2004) focus on motivational factors and feel that lack of motivation may actually hinder transfer of knowledge from one subsidiary to other units. They also admit that MNCs can control outflow of information and may force subsidiaries to increase it by using it as a criteria to assess performance. Robert Jensen et al. (2004) discuss the environment and cultural problems associated with transfer of knowledge. They explain that practices and strategies must be adapted to local culture in order for them to gain legitimacy.

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Peter J. Buckley et al. (2004) study the three process types that affect knowledge transfer. They assert that a firm should use the process that minimizes the risk of knowledge loss. Bernard L. Simonin (2004) talks about learning capacity and explains the ways in which factors such as ambiguity of knowledge and protectiveness may hinder transfer.

The articles have also effectively handled the subject of knowledge transfer and have taken different approaches to resolve various challenges that exist in this process. The authors have also successfully identified most of the major challenges faced by MNCs when transferring knowledge and some research findings have deviated from and disagreed with previous findings. For example while motivation level is seen as a possible hindrance by one study, the other research notes that it is adaptation which is a bigger problem and not exactly motivation. But the basic problem i.e. knowledge transfer has been aptly exhausted by the researchers and the findings may prove fruitful when combined with studies on human behavior in this connection. It is true and rather strange that most studies, with the possible exception of Simonin study, have not studied human behavior in detail to carefully examine the ways in which a person's beliefs and attitudes may hinder or facilitate knowledge transfer. More exhaustive studies on this….....

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