Knowledge transfer process of Brazilian multinationals: comparing acquired subsidiaries to the greenfield ones

Abstract

The main purpose of this study was to explore the knowledge transfer process between the subsidiaries and the headquarter of Brazilian multinationals, and to identify the most used mechanisms for transferring knowledge. This paper also aims to point out existing barriers in this process, comparing acquired subsidiaries to the greenfield ones. International studies have shown differences in the process of knowledge transfer due to the origin of foreign units (entry mode). We surveyed in 2006 and 2007 a sample of 66 Brazilian subsidiaries of multinationals with overseas activities. As a result, the knowledge transfer from the headquarter to the subsidiary has occurred through meetings with top executives and the reception of Brazilian executives in both types of units. The barriers to knowledge transfer are bland, being clearer in acquired subsidiaries. Cultural resistance is the most prominent. When we focus on the acquired units, the hierarchical structure is seen as a barrier, probably reflecting the centralized attitude by the headquarters. At the same time, the lack of incentives for sharing knowledge is more evident in greenfield units. Also, the syndrome of not invented here is a perceived barrier by acquired units.