Master’s Thesis Research Title: Knowledge beyond borders: A qualitative study of migrant workers' knowledge creation and transfer experience in MNCs. Master’s degree project in International Business and Trade - GM0161 Nancy Tchamtieu and Charles Iheke Supervisor: Sarah Franz July 28, 2025, Gothenburg 1 Table of Contents Abstract.........................................................................................................................................................4 Acknowledgments........................................................................................................................................ 6 1 Introduction............................................................................................................................................... 7 1.1 Background and Context................................................................................................................... 7 1.2 Theoretical Framing and Research Gap............................................................................................ 7 1.3 Purpose and Aim of the Study...........................................................................................................8 1.4 Research Objectives.......................................................................................................................... 8 1.5 Definition of Key Terms....................................................................................................................9 1.6 Scope and Contribution of the Study...............................................................................................10 2 Theoretical Framework.......................................................................................................................... 11 2.1 The Knowledge-Based View (KBV) of the Firm............................................................................ 11 2.2 Skilled Migration and Knowledge Transfer.................................................................................... 13 2.3 Knowledge Creation and Innovation Through Workforce Diversity in MNCs.............................. 14 2.4 Organizational and Social Barriers to Knowledge Utilization........................................................ 16 2.5 Policy-Level Influences on Skilled Migration and MNC Innovation............................................. 16 2.6 Theoretical Framework Justification and Integration......................................................................18 3 Research Methodology............................................................................................................................20 3.1 Research Approach..........................................................................................................................20 3.2 Research Design.............................................................................................................................. 21 3.3 Role of Theory.................................................................................................................................23 3.4 Data Collection................................................................................................................................ 24 3.5 Data Analysis...................................................................................................................................27 3.6 Ethical Considerations.....................................................................................................................30 3.7 Limitations for Data Collection.......................................................................................................31 3.8 Limitations for Data Analysis..........................................................................................................32 4 Empirical Findings..................................................................................................................................33 4.1 Firm Backgrounds........................................................................................................................... 33 4.2 Findings........................................................................................................................................... 35 4.2.1 Organizational Integration..................................................................................................... 35 4.2.2 Social Inclusion......................................................................................................................37 4.2.3 Policy Adaptation...................................................................................................................38 4.2.4 Knowledge Utilization........................................................................................................... 39 4.3 Summary of Findings..................................................................................................................... 40 5 Analysis of Findings................................................................................................................................ 43 5.1 Analysis........................................................................................................................................... 43 5.2 Theoretical Contributions................................................................................................................ 47 5.3 Managerial Implications.................................................................................................................. 48 5.4 Limitations of the Study.................................................................................................................. 50 2 6 Conclusion................................................................................................................................................51 6.1 Restating the Aim and Methodology...............................................................................................51 6.2 Summary of Key Findings...............................................................................................................51 6.3 Theoretical Contributions................................................................................................................ 52 6.4 Practical and Managerial Implications............................................................................................ 53 6.5 Study Limitations............................................................................................................................ 54 6.6 Recommendations for Future Research...........................................................................................54 6.7 Final Reflections..............................................................................................................................54 References................................................................................................................................................... 56 Appendices.................................................................................................................................................. 62 Appendix 1............................................................................................................................................ 62 Appendix 2............................................................................................................................................ 66 3 Abstract The study seeks to explore the role of migrant workers in creating and transferring knowledge in multinational corporations. The choice of Sweden is motivated by the country's position as a migrant-friendly nation, its innovation-based development, and the recent evolution of its migration policies. The study is primarily based on the literature on the Knowledge-Based View (KBV) of the firm, examining how it reveals the underlying factors that contribute to the processes of knowledge creation and sharing within the firm. The research employed a qualitative research method, involving semi-structured interviews with five skilled migrant employees and four managers across four multinational corporations (MNCs): Volvo Cars, Volvo Trucks, Power Factors, and Northvolt. A thematic analysis approach was adopted to identify key factors that shape knowledge creation and transfer, including organisational integration processes, social inclusion, managerial support, and the extent to which migration policies influence the perception of job security. The findings reveal that knowledge resources brought to work by skilled migrants are hindered by ineffective integration, the absence of migrant-specific onboarding programs, stringent migration policies, and a lack of proper leadership representation further impedes their impact. Additionally, informal social factors, such as language barriers, also hinder migrant workers' full participation in organisational learning processes. This study contributes to the Knowledge-Based View (KBV) by expanding the framework of the theory to include policy-level and social dimensions of the knowledge view. The main takeaways from the research are a number of recommendations for managers in harnessing the skills, experiences and knowledge of skilled migrant workers for the benefit of the firm. Moreover, the study emphasises the 4 importance of diversity but stresses that knowledge creation and transfer require more than diversity. It thrives on the wings of intentional organisational practices, inclusive leadership and fair policies. Keywords: Skilled migrant workers, multinational corporation, knowledge creation, knowledge transfers, migration policy, diversity 5 Acknowledgments We express our deepest gratitude to the migrant workers and Swedish managers at Volvo Cars, Volvo Trucks, Power Factors, and Northvolt for their generous support and valuable insights, which made this study possible. Special thanks are due to our thesis supervisor, Sarah Franz, whose patience, expertise, and continuous guidance were instrumental in shaping the quality and direction of our research. We are also grateful to the Department of International Business and Trade at the School of Business, Economics and Law, University of Gothenburg, for providing a supportive academic environment and access to essential resources. Finally, we extend heartfelt thanks to our families and friends for their unwavering encouragement and support throughout the course of this thesis. School of Business, Economics and Law, University of Gothenburg July 28, 2025 N.T.W I C E _____________________________ ______________________________ Nancy Tchamtieu Charles Enyinnaya Iheke 6 1 Introduction This chapter examines the significance of diversity within multinational corporations, with a particular focus on the role of migrant workers in knowledge creation and transfer. Grounded in the Knowledge-Based View (KBV) of the firm, it outlines the context in which knowledge is generated, shared, and utilised in globally diverse organisational settings. The chapter introduces the opportunities and challenges associated with knowledge transfer in multinational corporations operating in Sweden, offering both conceptual and practical insights. It is structured into several key sections: background and context, theoretical framework and research gap, aim and purpose of the study, research objectives, definition of terminology and the study’s scope and contributions. 1.1 Background and Context The diversity that exists between people who work together can translate into more creative and innovative ways of conducting business operations (Singal, 2014). Multinational corporations (MNCs) are structured in a way that promotes the interaction of workers from different parts of the world with varying backgrounds, perspectives, knowledge, and views (Reiche et al., 2019). Among these workers are skilled migrants, who contribute to organisational learning and innovation by bringing technical expertise, cultural knowledge, and unique competencies (Reiche et al., 2019). 1.2 Theoretical Framing and Research Gap Knowledge is a vital organisational asset that determines a firm’s level of innovation, competitiveness, and growth (Grant, 1996; Kogut & Zander, 1992). According to the knowledge-based view (KBV) of the firm, organisations can thrive when they are able to effectively harness and utilise the knowledge and expertise of individuals (Grant, 1996). However, there is limited understanding of how the distinct knowledge carried by skilled migrant workers, shaped by diverse educational, professional, and cultural 7 backgrounds is absorbed, transferred, and institutionalised within MNCs. This gap raises concerns about whether MNCs are fully leveraging the knowledge potential of migrant workers. There is a need to explore how organisational structures, social dynamics, and policy frameworks either support or hinder knowledge transfer by migrants in the workplace. 1.3 Purpose and Aim of the Study The aim of this study is to explore how multinational corporations in Sweden facilitate, manage, and utilize the knowledge created and transferred by skilled migrant workers. The focal point is to understand the organizational factors, managerial practices, and the institutional conditions that promote or hinders knowledge transfer from migrant employees within the settings of multinational companies. The purpose of this research however is to gain insights into the operations of MNCs as it relates to identifying, capturing, and leveraging the skills and expertise of skilled migrants in order to enhance innovation and firm learning. By integrating both employee and managerial perspectives, the study contributes to the literature on the Knowledge-Based View (KBV) of the firm, international human resource management and cross-cultural knowledge transfer. This aim will be achieved by answering the following research question: How do multinational corporations in Sweden facilitate the creation and transfer of knowledge contributed by skilled migrant workers? 1.4 Research Objectives To further guide the investigation, this study is structured around the following research objectives: ● To examine the organizational structure and practices used by MNCs to identify and integrate the knowledge of skilled migrant workers. 8 ● To understand the role of managers and HR personnel in promoting or hindering knowledge transfer involving skilled migrants. ● To explore how company policies, programs, structures and workplace culture impacts the flow of knowledge from migrant employees. ● To investigate the level to which MNCs formally or informally utilize migrant workers knowledge for innovation and learning at an organizational level. 1.5 Definition of Key Terms Skilled Migrants: Skilled Migrants in this study refers to individuals with formal university education, training, or relevant work experiences who relocated to Sweden for employment in sectors where their knowledge is considered a useful addition to the value proposition of the firm (OECD, 2020, p. 10). Knowledge Transfer: Knowledge Transfer refers to the processes through which the expertise, skills, and practical know-how of an employee(s) is shared within organisations settings, particularly across culturally diverse teams (Szulanski, 1996, p. 28; Grant, 1996, p. 110). Knowledge Creation: Knowledge Creation in this study refers to the generation of new insights, practices, mechanisms or solutions within an organisation that is often a result of collaboration, problem-solving, and the integration of diverse perspectives in the attempt to uncover a more innovative approach to business operation (Nonaka & Takeuchi, 1995, pp. 8–11). Knowledge: Knowledge in the context of this study refers to both tacit (experiential, hard to codify) which are personal possessions of individuals and explicit (documented, transferable and codified) forms of understanding that aids the ability to perform tasks and solve problems within organisations (Grant, 1996, pp. 111–113). 9 Multinational Corporation: Multinational Corporation (MNC). A multinational corporation is an enterprise that operates in multiple countries but is typically managed from a home country, coordinating its global operations to deliver products, services, or innovation across borders (Bartlett & Ghoshal, 1989, pp. 20–21). Organizational Integration: Organisational integration describes the structured efforts by firms to help new employees, especially migrants, become acquainted with organisational routines, tools and role expectations (Kogut & Zander, 1992, pp. 384–386). Social Inclusion: Social inclusion in this context refers to the degree of acceptance associated with the experience of migrant workers. The value placed on them and being able to fully participate in both formal and informal workplace interactions and opportunities (Roberson & Park, 2007, pp. 382–384). Migration Policy: Migration policy refers to national or regional laws that regulate the movement, rights, and employment conditions of foreign nationals, including work permit requirements, salary thresholds, and visa sponsorships (Swedish Migration Agency, 2023). Diversity: Diversity in this study refers to the presence of differences in national origin, ethnicity, language, cultural background, and professional experience within a workforce, particularly as it relates to organisational innovation and team performance (Østergaard et al., 2011, pp. 502–504; Nathan, 2014, p. 6). 1.6 Scope and Contribution of the Study This study focuses on MNCs operating in Sweden, a country recognized for its innovation-driven economy, openness to skilled migration, and evolving migration policies. Sweden provides a compelling context for exploring the interplay between diversity, knowledge, and innovation. Theoretically, this research extends the KBV by integrating migration an