Interpersonal similarity as a driver of knowledge sharing within multinational corporations

Knowledge sharing has attracted considerable interest in the context of the multinational corporation. However, although there is evidence to support the view that effective knowledge sharing is fundamental for competitive advantage, we still do not understand clearly enough the enablers and barriers to such knowledge sharing. In this paper, we argue that interpersonal similarity is one key driver behind knowledge sharing within the MNC context. We focus on the similarity of the national-cultural background, shared language, and similarity of organizational status as factors generating homophily. We suggest that such similarity leads to a higher tendency for interaction, increasing the sharing of business knowledge, and driving an aggregate effect of clustering. Based on a synthesis of the literature and a multiple case study of three multinationals, we argue that knowledge flows better within clusters driven by hornophily than between them, creating a paradox of homophily. (C) 2007 Elsevier Ltd. All rights reserved.