An Empirical Study of the Role of Knowledge Characteristics and Tools on Knowledge Transfer in China-Based Multinationals

Abstract

This article describes how technology—i.e. the infrastructure of tools, systems, platforms—enhances knowledge transfer. The effect of tools on the relationship between knowledge characteristics and knowledge transfer effectiveness is under-researched. This article attempts to address the interplay of knowledge characteristics and transfer tools within multinational corporations (MNCs). Based on the structural equation modelling, this research proposes and tests a basic model that captures knowledge characteristics and transfer tools at 125 Japanese subsidiaries operating in China. Drawing on the literature, this article argues that the role of knowledge characteristics and transfer tools need to be considered for effective knowledge transfer between MNCs and their subsidiaries. Knowledge characteristics and transfer tools play differing roles in knowledge transfer. This article also extends the existing studies by focusing on knowledge characteristics and transfer tool constructs simultaneously in a model to understand the notion of knowledge transfer effectiveness in the global business context.