Usage of Knowledge Received from the Japanese Headquarters : An Investigation Among Japanese Overseas Subsidiaries

Abstract

Knowlege has without doubt become one of the most valuable resource of multinational corporations. Some authors even propose that knowledge is their only most enduring source of advantage. This challenges companies to manage knowledge effectively and to transfer it successfully from one member to another. This task is especially challenging for multinational corporations (MNCs), which are required to combine knowledge from company units in different locations. Knowledge needs to be localized, examined, and transferred to be re-used at another location within the organization. This implies overcoming geographical, cultural and lingual barriers. This paper investigates intercultural knowledge transfer within Japanese multinational corporations and their overseas subsidiaries. It discusses the antecedents that increase usage of knowledge received from Japan at the receiving company unit. An empiricial investigation among 122 Japanese subsidiaries in Austria, Germany and Korea was conducted and revealed that personal attributes of the knowledge recipient are of great importance. His/her experience of living in a foreign country, low cultural distance towards Japan and a high level of Japanese language proficiency are the most influential factors on usage of intercultural knowledge transfer within Japanese multinational corporations.