Navigating Technological Knowledge Transfer: Exploring Relationship Dynamics between HQ and Subsidiaries - A Case Study of the Swedish MNC SKF

Abstract

This study explores the complex dynamics of technological knowledge transfer between headquarters and subsidiaries within multinational corporations. While previous research has primarily focused on technical aspects, this study investigates the impact of relationship elements such as trust and distance factors on technological knowledge transfer. Through a single case study approach, the purpose of the study is to increase the understanding of how relationship elements impact technological knowledge transfer between headquarters and subsidiaries. Using an abductive approach, empirical data was collected through semi-structured interviews with managers and employees at both headquarters and subsidiary level at SKF. Based on our analysis of the empirical data, trust and connection intensity emerged as critical elements, facilitating successful knowledge transfer between units. Conversely, organizational-, normative- and knowledge base distance elements indicated limited impact. Additionally, four empirically driven elements; physical interactions, formal processes, language and transparency are identified as significant contributors to technological knowledge transfer. Finally, this study suggests implementing formal processes, transparency, language-proficiency and physical interactions to enhance technological knowledge transfer.