Cultural distance and inter-organizational knowledge transfer: a case study of a multinational company

The purpose of this study is to explore a phenomenon in knowledge management that has been given scant attention: the influence of cultural distance on inter-organizational knowledge transfer in the context of multinational companies involving headquarters in the USA and a subsidiary in Sri Lanka.

Designed as a qualitative exploratory study, data was collected through in-depth interviews of 15 participants and documents review.

The findings of this study implied that the theoretically introduced cultural dimensions shall be relevant to analyze the phenomenon of this study. Consequently, through the findings of this study, it is argued that inter-organizational knowledge transfer in multinational companies is influenced by cultural distance.

This study theoretically and empirically contributes to the debates on knowledge transfer in knowledge management research in general and, inter-organizational knowledge transfer in multinational companies between headquarters and subsidiaries with respect to the influence of cultural distance in particular, through the light of Trompenaars’ (1993) cultural dimensions theory.

The findings of this study could motivate the practitioners to take into account: the influence of cultural distance on inter-organizational knowledge transfer, if inter-organizational knowledge transfer happens in similar contexts: multinational companies with a headquarters in the USA (a western context) and a subsidiary in Sri Lanka (a non-western context) in the practical business world.

This study provides theoretical and empirical insights into the influence of cultural distance on inter-organizational knowledge transfer in multinational companies between headquarters and subsidiaries in the selected context while suggesting various avenues for further research toward the influence of cultural distance on such phenomenon in similar/dissimilar contexts.