Proceedings of the 33rd International Academic Conference, Vienna

EXPLORING THE ROLES OF MARKET-DRIVEN CAPABILITY AND FUNCTIONAL DIVERSIFICATION IN MARKET KNOWLEDGE TRANSFER WITHIN MNCS

SIRISUHK RAKTHIN

Abstract:

Drawing upon theory from transnational management and market-driven organization literatures, this study uses both survey and case study data of 162 respondents who works in three multinational corporations (MNCs) to examine the influence of functional diversification, market-driven capability, and cultural distance on a transfer of market knowledge from foreign affiliates to headquarter. The empirical results indicate a strong positive influence of both functional diversification and market-driven capability on a transfer of market knowledge, i.e., customer and competitor intelligence. The qualitative data collected through in-depth interviews with top executives were then leveraged to provide further explanation and support empirical results. Implications for academics and practitioners are also addressed.

Keywords: knowledge transfer in MNCs; actor network theory; market-driven; functional diversification

DOI: 10.20472/IAC.2017.33.061

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