©2006 INFORMS Acquiring and Applying Knowledge in Transnational Teams: The Roles of Cosmopolitans and Locals

This paper examines the roles of cosmopolitans and locals in transnational teams that work on knowledge-intensiveprojects. I propose that cosmopolitan and local team members can help their teams to acquire and apply knowledge more effectively, by bringing both internal and external knowledge to their teams and enabling the teams to more successfully transform this knowledge into improved project performance. Findings from a study of 96 project teams at an international development agency reveal that the roles of cosmopolitans and locals were complex and sometimes valuable, but that cosmopolitans offered greater benefits than locals. The study also revealed that too many of each could hurt. Implications for theory and research on international management, virtual teams, exploration and exploitation, and organizational knowledge are discussed. Key words: knowledge; transnational teams; cosmopolitans and locals; exploration and exploitation To perform and compete successfully, transnational organizations must strive to achieve worldwide innova-tion, global integration, and local differentiation simulta-neously (Bartlett and Ghoshal 1989, Nohria and Ghoshal 1997). Strategy and international management scholars increasingly view the creation, dissemination, and uti-lization of knowledge as critical to addressing thes