Cultural Role
Cultural Role
In the current world of globalization, most organizations and companies strive to work in different countries. The article looks at the issues that affect cultural knowledge within multinational corporations (MNCs). Using Hofstede’s approach, the author tries to analyze some of the possible elements that affect transfer of knowledge between subsidiaries of MNCs. The article helps an individual understand how corporations understand and deal with the issue of knowledge transfer among cultures. According to the author, managers in MNCs should pursue knowledge on how to respond and transfer knowledge in different cultures. It is vital for managers to understand what issues arise when dealing with cultures from different locations and settings. Trade barriers in the world of trade are eliminated making it easy for organizations operate in different countries. In respect to that, the author of the article explains the aspect of knowledge transfer in their subsidiaries, (Lucas, 2006).
The author mainly discuss on several factors that contribute towards knowledge transfer in the current world of business development. There have been a lot of critical issues in respect to knowledge transfer. Knowledge transfer has a lot of definitions depending on the setting of business operations. Knowledge transfer has focusing on effectiveness, speed, and institutionalization. Apart from that, the article gives a different view on efforts applied to transfer certain knowledge to parties. In general, the author highlights on the key elements that must account on knowledge transfer and they include transformation, embodiment, and type of knowledge. There exist two main types of knowledge for transfer, and they are explicit and tactic, (Lucas, 2006).
Ambiguity is the main challenge towards successful knowledge transfer process. The article explains how individuals involved in knowledge transfer make the process technical. If they do not reduce the aspects into a situation that explains clearly, they tend to make work difficult and technical. When the knowledge has, individuals must make some adjustments on how it must fit into the target situation. One of the vital aspect to consider when transferring knowledge focus on how to store knowledge. An organization ensures that the acquired information is appropriate and can be stored in the right method, (Lucas, 2006).
It is relevant for an organization that wants to operate in different parts of the world explain critically operations and goals opening other branches. MNCs are networks that operate in different geographical location. Subsidiaries no longer exist as appropriates of knowledge in respect to home based office mandates. They are currently part of the knowledge transfer and must be taken care accordingly, (Lucas, 2006).
Using different elements of knowledge transfer, individuals have been able to transfer knowledge appropriately. The Hofstede’s cultural index has allowed different organizations study and develop appropriate strategies on knowledge transfer. The cultural index contains five key aspects that count to knowledge transfer. Individualism/collectiveness, masculinity/femininity, uncertainty avoidance, and power distance count to the core aspects for any knowledge transfer success of MNC subsidiaries. The article argues how relevant knowledge transfer is vital for the success of MNCs. According to the article, the approach of knowledge transfer highly depends on efficient and speeds during the transfer process. Although knowledge transfer process is risky, parties must have a certain degree of confidence, (Lucas, 2006).
Work Cited:
L. M. Lucas, “The Role of Culture on Knowledge Transfer: The Case of the Multinational Corporation,” Learning Organization, Vol. 13, No. 3, 2006, pp. 257-275.
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