Subsidiary power, cultural intelligence and interpersonal knowledge transfer between subsidiaries within the multinational enterprise

We propose that individual-level knowledge transfer between subsidiaries within a multinational enterprise depends on the perceived relative power of the subsidiary and the cultural intelligence of individuals. Using a sample of 333 research and development (R&D) subsidiary employees of foreign Multinational Enterprises (MNEs) in India, we find that the perceived subsidiary power has a direct positive significant effect on knowledge sharing, and an indirect significant effect, through organizational identification, on knowledge seeking. Further, cultural intelligence moderates the effect of organizational identification on knowledge seeking, and the indirect effect of the perceived subsidiary power on it. The findings highlight the role of organizational identification and cultural intelligence in explaining the impact of the perceived subsidiary power on interpersonal knowledge transfer within the MNE.

Automated summary

The transfer of individual-level knowledge between subsidiaries within a multinational enterprise is influenced by the perceived relative power of the subsidiary and the cultural intelligence of individuals. Organizational identification mediates the relationship between perceived subsidiary power and knowledge seeking, with cultural intelligence moderating this effect. These findings underscore the importance of organizational identification and cultural intelligence in explaining how perceived subsidiary power impacts interpersonal knowledge transfer within MNEs.