Exploring the Effects of Vertical and Lateral Mechanisms in International Knowledge Transfer Projects

Knowledge is critical for creating and sustaining competitive advantage and in today's fast-moving international market firms need to leverage knowledge globally. Therefore, one important question becomes what effect different transfer mechanisms have on transfer success. This study investigates 169 international knowledge transfer projects in multinational corporations focusing on the role of hierarchy, heterarchy and IT in terms of effects on knowledge transfer success, that is, efficiency and effectiveness of the transfer project. We find that the effects of the different integrative and coordinative structures on knowledge transfer success are contradictory. Centralization through headquarters involvement is negatively related to knowledge transfer success in both its dimensions, while previous cooperation between subsidiaries has positive effects on transfer effectiveness, but not on efficiency. The use of IT nurtures knowledge transfer success in both dimensions. This study adds to the knowledge about the effects of vertical and lateral mechanisms on the success of knowledge transfer projects.