Knowledge Transfer between Swedish firms andtheir Indian sales units: : Enablers, impediments, and the importance oforganizational culture

Abstract: The purpose of this study is to explore knowledge transfer between Swedish firms and their Indian sales units. We maintain that knowledge is a strategic contributor to the firm and that it is crucial to leverage knowledge to newly established subsidiaries abroad as selling-related knowledge is the key driver of sales performance. India is interesting to examine because of its large and fast growing market, which gives reason to establish and sharpen sales activities in the country. Knowledge transfer research has identified three main areas related to this concept; the nature of knowledge, enablers, and impediments. We have explored these three areas using four case studies. Two of the case companies are large MNC’s that are used to obtain general information about knowledge transfer between Sweden and India, while the two latter are smaller MNC’s where information more specific to sales was gathered. At each company, at least one Swede and one Indian employee have been interviewed in order to capture a senderreceiver relationship. In total, eleven interviews and two surveys were conducted over a period of two months in India. Seven propositions form the basis of our theoretical framework and we can support six of them. Based on these, we go on to construct a model for knowledge transfer between Sweden and India. This model is the first of its kind - no earlier research has presented a description of knowledge transfer between Swedish and Indian sales units. Another key finding is how the parent company can transfer their organizational culture to the Indian unit. Cultural differences, especially strong hierarchies and vague communication in India, are identified as the key impediments to knowledge transfer. These cultural gaps can be mitigated by a common cultural context which is why the parent company needs to establish the Swedish organizational culture at the Indian subsidiary, while still respecting the Indian culture in general. We present what motivates Indians to adopt a new organizational culture, how the culture should be communicated, and which practices that are efficient. For expatriate CEO’s - one of the most central practices - we provide a model that can help Swedish managers to decide if a Swedish CEO or Indian managers should be used, from a perspective of how to transfer organizational culture.