Chapter 5: Creation, Diffusion, and Transfer of Organizational Knowledge in Transnational and Global Organizations: Where do We go from Here?

Effective management of organizational knowledge has been conceptualized as a significant source of sustained competitive advantage for transnational and global organizations. These organizations engage in the creation, diffusion, and transfer of organizational knowledge on an on-going basis. A framework by Nonaka and Takeuchi (1995) is used to explain the nature of knowledge creation in global contexts. Next, the roles of strategic considerations, administrative heritage, and technical systems in the creation, diffusion, and transfer of organizational knowledge are discussed.The role of cultural differences is also examined in the transfer of organizational knowledge both within and across global organizations. Implications for future research in international management are discussed.