Organization-internal Transfer of Knowledge and the Role of Motivation: A Qualitative Case Study

Knowledge transfer within an organization may be thought of as the process by which an organization makes available knowledge about routines to its members, and is a common phenomenon that can be an effective way for organizations to extend knowledge bases and leverage unique skills in a relatively cost-effective manner. With the increasing resource-based focus in strategy research, knowledge and ways to develop and leverage it have become key strategic issues (Barney, 1991; Peteraf, 1993).......
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Organization-internal Transfer of Knowledge and the Role of Motivation: A Qualitative Case Study Knowledge and Process Management Volume 10 Number 2 pp 115–126 (2003) Published online in Wiley InterScience (www.interscience.wiley.com). DOI: 10.1002/kpm.170 & Case Study Organization-internal Transfer of Knowledge and the Role of Motivation: A Qualitative Case Study Thomas Kalling* Institute of Economic Research, Lund University, Sweden This paper reports a case study of a knowledge transfer programme in a manufacturing MNC, and suggests that firm-internal knowledge transfer programmes are exercises requiring a great deal of recipient motivation. In contrast to existing theory, which has a tendency to address the role of cognitive factors such as tacitness, causal ambiguity and absorptive capacity, this paper suggests that motivation needs to be in place first. In the studied case, differences in local per- ceptions of transfer ventures, aspiration and strategic ambitions, internal competition, the view on the nature of knowledge and local communication seem to explain success and failure in transfer ventures. If motivation is not in place ‘naturally’, it can be managed in different ways, including local and corporate management control routines as well as organization struc- ture. Consequently, we argue that knowledge transfer theory should not presume that organi- zational units are interested in the knowledge transferred, or that knowledge is always ‘good’. Knowledge is contextual, meaning it fits certain operations and strategies better, even in instances where intra-organizational units are homogeneous. Hence motivation is central to transfer success. Copyright # 2003 John Wiley & Sons, Ltd. INTRODUCTION describing success and failure of knowledge trans- fer. Although there are debates about the finer Knowledge transfer within an organization may be details of the roles of these factors, the factors that thought of as the process by which an organization are highlighted are relatively common from study makes available knowledge about routines to its to study. However, there are relatively few in- members, and is a common phenomenon that can depth studies of the ways in which people involved be an effective way for organizations to extend in knowledge transfer ventures behave, how they knowledge bases and leverage unique skills in a perceive these ventures, and whether these factors relatively cost-effective manner. With the increas- are connected to the subsequent success or failure ing resource-based focus in strategy research, of knowledge transfer. Thus the purpose of this knowledge and ways to develop and leverage it paper is to provide some insight into how knowl- have become key strategic issues (Barney, 1991; edge transfers are perceived and managed by those Peteraf, 1993). involved, and how this perception can affect learn- Much of the research focuses on cognition, the ing strategies and subsequent success. nature of knowledge and organizational issues, in The paper is structured in the following way. The next section discusses and summarizes theory on knowledge transfer, and the following section *Correspondence to: Thomas Kalling, Institute of Economic holds a discussion of the interpretive methodology Research, School of Economics and Management, Lund Univer- sity, P.O. Box 7080, SE-220 07 LUND. applied. Then follows an empirical section describ- E-mail: thomas.kalling@ics.lu.se ing a knowledge transfer initiative, framed by the Copyright # 2003 John Wiley & Sons, Ltd. CASE STUDY Knowledge and Process Management structure provided by interpretations of accounts. the knowledge, is of course central in transfer We have interviewed more than 30 managers and situations (Szulanski, 1996; Simonin, 1999; cf. employees in SCA Packaging (a European paper Cohen and Levinthal, 1990). Furthermore, the value packaging supplier), representing both the sources of the stocks of knowledge at the source is a poten- and recipients of transferred knowledge, about the tial factor. The more valuable it is, the more likely it programme. The effects of the transfer programme is that the recipient will attempt to use it (Gupta have also been measured, enabling comparison and Govindarajan, 2000). The absorptive capacity between successful and unsuccessful plants. In will determine whether it will work or not. Another the subsequent sections we discuss the possible factor, related to competitive advantage, is the explanations to transfer success and its relation to uniqueness and inimitability of the knowledge. If existing knowledge transfer theory. knowledge transferred internally can also be trans- ferred externally, to competitors, for instance through personnel migration or intelligence activ- THEORY ities, there is a risk that the effects, say on costs, can be duplicated by competitors. This can lead Knowledge transfer theory has obvious overlaps to cost reductions across the industry, ...