MNC strategy, knowledge transfer context, and knowledge flow in MNEs

Purpose Cross-border flow of knowledge is fraught with many challenges. The complexity associated with the organization of multinational corporations (MNCs), and the information asymmetry in foreign locations poses particular challenges to knowledge flow. Yet, effective transfer of knowledge is critical for the survival and performance of MNCs. The purpose of this paper is to present a comprehensive framework to understand the difficulties in the smooth flow of knowledge in MNCs. Design/methodology/approach The study is conceptual in nature and is based on an extensive review of the extant literature. Findings This review of the literature suggests that knowledge flow in MNCs is affected by country-level, firm-level and individual-level factors. The authors discuss these in the backdrop of the MNC strategy and the knowledge transfer context. The authors present their theoretical model and discuss the implications for advancing research in this domain. Originality/value This is one of the first papers to present a comprehensive framework to understand knowledge flows in MNCs.