Knowledge transfer in MNCs: Headquarter to subsidiaries in developed & emerging markets

Abstract: Aim: This study aims to analyze the approaches and procedures used in the knowledge transfer process (KTP) in MNCs from Headquarter to their subsidiaries operating in developed and emerging markets.Method: Qualitative research with an inductive approach is used for this study where multiple case studies are conducted based on six MNCs in which each MNC was considered as an individual case. Data were collected through semi-structured interviews and extant literatures which mainly include scholarly articles. Findings: Our findings show two main approaches: knowledge-utilization and Knowledge-creation are mainly used in knowledge transfer by MNCs. Knowledge-utilization approach is followed when the process channel is from headquarter to their subsidiaries. Whereas Knowledge-creation approach is used more in the MNCs headquarters and their subsidiaries operating in developed markets as compared to the MNCs subsidiaries operating in emerging markets due to limited access of resources and managerial focus. Furthermore, external factors such as culture, language, geographic location impediment the KTP and other factors like pandemic scenario, expatriate manager and, access to knowledge augment the KTP.Contribution of the thesis: Through this study, the MNCs at managerial level, in developed and emerging markets can learn the effective way to knowledge utilization as well as can develop innovation capabilities. Moreover, a societal perspective is also considered in this study by highlighting the fact of current Pandemic situation which has completely changed the living and working style but simultaneously reduced the communication gap as we are now more digitally connected with each other.Recommendations for future research: The use of digital tools in KTP, the KT strategy adopted in crisis situations like COVID-19 can be focused in future studies. Another issue can be recommended that is whether gender difference influences the knowledge transfer process or not.Keywords: Knowledge transfer (KT), Knowledge transfer process (KTP), Knowledge-utilization, Knowledge-creation, Developed Market (DM), Emerging Market (EM