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The IUP Journal of Knowledge Management :
Interfirm Knowledge Transfer Methods
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The purpose of this article is to present the results of a survey of 121 American multinational subsidiaries in Brazil. It establishes how multinationals transfer knowledge to their local suppliers. Each identified transfer method is analyzed to determine the objective behind the transfer, and the mechanisms used in order to do so. Four methods have been identified. The characteristics of the moderate method are poor reciprocal commitment (from the source and the recipient), poor mastering of the transfer process, and low capacity of the source to deal with informal aspects of the transfer. The strategic objectives and the mechanisms associated with this method are limited to those which are common to all the methods. The relational method is characterized by high reciprocal commitment, high capacity of the source to deal with informal aspects of the transfer, and limited mastering of the transfer process. The specific objectives are the improvement of knowledge of the source by feedback effect, the creation of knowledge in common as well as the creation of specific relationships, and the use of transfer as a means of implementing strategic objectives. The mechanisms are regular face-to-face meetings, team work, and in certain cases, training and audit-consulting. The technical method is in direct opposition to the former, and is characterized by high reciprocal commitment, low capacity of the source to deal with informal aspects of the transfer, but a high mastering of the transfer process. The objectives are the creation of specific relationships, the implementation of strategic objectives, and in certain cases, a network management strategy. The mechanisms used are mostly documents, training, audit-consulting and a common IT system. The complete method is characterized by high reciprocal commitment, high capacity of the source to deal with informal aspects of the transfer, and a high mastering of the transfer process. It aims to serve all the strategic objectives identified, and uses a complete range of mechanisms.

Knowledge transfer is a key activity in the management of organizations, whether for diffusing best practices in the firm with the aim of maximizing productivity, or for transmitting knowledge to other firms to facilitate interfirm relationships. In this study, the focus is on the second type of transfer, i.e., interfirm transfer of knowledge. In particular, the study is on knowledge transfer by American multinationals to their local suppliers in Brazil. The purpose of this research is to identify and define transfer methods, according to the dimensions which have been identified on the basis of a literature review. These dimensions are used to build a typology. The methods identified are then defined from two elements: the strategic objectives of the source of the transfer, and the mechanisms used for the transfer. In the first part of the article, the main concepts relative to knowledge transfer are defined. Then, the methodology used is presented, specifying how the data was gathered, followed by defining the variables which were identified to build the typology. These variables are organized in two groups: the characteristics of the transfer method, and the components of this method (strategic objectives and mechanisms). The results of the typology are presented thereafter, followed by a discussion of the results.

 
 
 

Interfirm Knowledge Transfer Methods, American multinational subsidiaries, multinationals transfer knowledge, strategic objectives, network management strategy, management of organizations, interfirm relationships, scientific or technical developments, logistic operations, international context.