Effectiveness of Knowledge Transfer in Multinational Companies: the case of two Selected Manufacturing Companies in Ethiopia
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Date
2020-05
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A.A.U
Abstract
Transferring knowledge from one subsidiary to another subsidiary increases the speed,
efficiency, and quality of learning of an organization. Transferring and re-using information
from previously learned source can help a company to reduce the cost of learning for a new
target task (Chin, 2013). Inter-subsidiary relationship, the degree of involvement of the
subsidiary in the company network and the internal competitiveness within and across units
influences knowledge transfer. A subsidiary relationship is made of interactions formed with
external partners; however, each unit is unique and is embedded in its own local context, and
integrated in the MNC network (Lee & Wu, 2010). The study intended to investigate
effectiveness of knowledge transfer in multinational companies. It was conducted in East
Africa Bottling Share Company (EABC) and Beverage George Industry (BGI) companies
which are Multinational Companies in Ethiopia. The researcher used descriptive research
design and mixed research approach to investigate the study. Among 143 target population of
the study (not including the physical labors of the companies), 4 managers and 103 workers
were taken as a sample. Participants of the study were selected using judgmental and
stratified sampling techniques (by using top mgt, middle level mgt and lower-level mgt as a
strata) to select managers and employees of the two selected companies respectively. Both
primary and secondary data was collected through data gathering instruments of survey
questionnaires, semi-structured interview, direct observation and document analysis. Then,
the data gathered in different sources was analyzed and interpreted in descriptive manner
using SPSS. The finding revealed that an adoption and deployment of effective knowledge
transfer is very essential; however, a company cannot be successful without a robust
knowledge transfer especially when deployed in an international dimension where
subsidiaries and Head Quarter constantly interacts each other. Even though, these
Companies attempted to understand the phenomenon of effective knowledge transfer and a
number of mechanisms have been proposed and described, none of them are fully adaptable
to the context of these Companies. The companies faced lack of specificity to this particular
field of practice. Hence, there is a need for a strong communication system to maintain good
information flow to bring effective knowledge transfer to be competitive firms.
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Keywords
Knowledge Transfer, Knowledge, MNCs, Manufacturing Firms