Early phase knowledge transfer in a multinational enterprise : a qualitative case study of a Norwegian MNE

Abstract

The purpose of this paper is to investigate the challenges faced by multinational enterprises (MNEs) in the early phase of developing cognitive social capital and subsequent knowledge transfer capabilities. Previous research has placed great emphasis on the various antecedents to knowledge transfer capabilities, including social capital and motivation. However, little attention has been given to the various phases in which firms can abide and the influence of the phase on the necessary measures to be taken in order to enhance their capabilities to transfer knowledge. The conducted research presents an exploratory, qualitative case study on the Norwegian MNE Statkraft, an international player in the renewable energy industry. Through a revised and expanded conceptual model of the determinants of knowledge transfer capabilities, this paper’s focal point lies on the development of cognitive social capital, the socialization and motivational mechanisms that promotes it, and the internal organizational barriers that potentially hinders it. Two main findings are identified. First, the unraveling of the internal organizational barriers to the creation of cognitive social capital and subsequent knowledge transfer capabilities. These barriers include a lack of managerial commitment to the development of cognitive social capital and an unwillingness to desirably utilize socialization mechanisms, through for example a “hoarding” of competent people within the own unit. The barriers also include the practical feasibility of deploying socialization mechanisms, e.g. the costs related to such practices. Second, this paper fortifies the notion that there is a need for a firmer, more hierarchical approach for firms in the early phases of developing cognitive social capital in order to subsequently promote and expand their knowledge transfer capabilities. As such, this paper contributes theoretically by expanding and nuancing previous frameworks and theory as well as practically by offering Statkraft insights on how to further develop the firm’s cognitive social capital and subsequently their knowledge transfer capabilities. Keywords: Knowledge Sharing, Knowledge Transfer, Social Capital, Cognitive Social Capital, Multinational Enterprise (MNE)