What aspects affect inter-organizational knowledge transfer in different company sizes? An exploratory study

Purpose - The purpose of this thesis is to explore aspects that affect inter-organizational knowledge transfer (KT), at the organizational level, from different sized companies such as small and medium enterprise (SME) and large or multinational company (LC/MNC), separately, to their partners.Design/methodology/approach - This thesis conducted a qualitative study with a deductive approach, using two companies in Sweden that belong to the hospitality industry and health sector, one SME, and one LC/MNC in order to explore the aspects that affect inter-organizational knowledge transfer by applying a theoretical framework based on existing literature. Thus, the thesis adopts an exploratory case study approach as a research strategy, to which the theoretical framework is applied to. Findings – The theoretical framework regarding SMEs and LC/MNCs engaging in inter-organizationalKT with partners found that the following aspects are affected differently in the companies: (1) Howformal and informal Knowledge governance mechanisms are applied in the different sized firms (e.g.,LC/MNC aim to reduce cost and improve profitability with formal, while SMEs focus on growth andexpansion with informal) (2) Formal trust agreements are used to establish Trust with partners for bothsized firms (e.g., by None-disclosure agreements), (3) In Cultural distance, SMEs focus onunderstanding the decision-making process and motivation of their international partners, (4)Geographical distance/proximity is prevalent to establish trust-based relationship between partners, (5)In Disseminative capacity SMEs as a source feel less motivated to exchange knowledge with differentpartners, e.g., a LC/MNC due to their rigid processes and inflexibility , (6) The LC/MNC prefer formalSocial ties with partners, while SMEs prefer informal ones, however the SME often ends up adaptingto their larger partners preferences, (7) Both the SME and LC/MNC attempt to establish Motivation viathe job deception for the employees and the employees were motivated by this rather than being offeringintrinsic or extrinsic motivation, (8) The SME’s Absorptive capacity as a recipient of knowledge, limitsthe KT due to their organizational limitations and (9) The perspective of LC/MNC regarding Knowledgecharacteristics, when the maturity level and experience of the partner organization (e.g., a SME) isdeemed low, this affects the KT negatively as it increases ambiguity and tacitness of the knowledge,while complexity was found to be of low concern due to the smaller organizational needs. Managerial implications - This thesis brings practical implications to senior managers of companies at the strategic level. First, the findings provide an understanding of aspects that affect inter-organizational knowledge transfer where one organization can prioritize aspects that belong to different sized partners and shape accordingly a strategy on collaboration and interaction with external partners of different sizes. Therefore, when top managers are aware of aspects that affect knowledge exchange between partners, they can identify various risks of success and failure in KT processes according to the list provided and prioritize actions and opportunities that can arise due to engagement in that partnership: cultural, geographical, motivation, partner’s capabilities, ambiguity, complexity, etc. Secondly, to draw a holistic snapshot of various aspects in the findings that affect KT activities from the inter-organizational perspective for different firm sizes in terms of similarities and differences of KT activities for LC/MNCs and SMEs, managers can establish specific strategies to analyze their own knowledge transfer activities to adjust accordingly when participate in inter-organizational knowledge transfer with partners depending on the size. Originality/value - This research adds value to inter-organizational KT aspects for SMEs and LC/MNCs in terms of differences and similarities, in the sense of how KT aspects affect the different organizations, as the aspects are prioritized, impacted, and treated differently based on the size of the organization. Thus, this thesis integrates aspects that affect inter-organizational KT from different bodies of the literature and demonstrate theoretically and empirically the perspective of different company size(LC/MNC and SME). Keywords - Knowledge transfer, Inter-organizational, Organizational level, LC/MNC, Large company, Multinational company, SME, Small and medium enterprise.Paper – Master thesis