Explaining Knowledge Transfer within a MNC Using a Two - gap Model

Knowledge transfer has become one of the most important means to create and sustain the competitiveness of MNCs. It is MNCs’ another advantage that they can enhance global competitiveness through the intra-transfer of not only HQs’ firm-specific knowledge but also foreign subsidiaries-specific knowledge developed from global learning. This paper has three purposes that can be summarized as follows. First, to better understand international knowledge transfer within a MNC, we reviewed top management and international business journal during 2000∼2014 and found 12 key determining factors of international knowledge transfer. Second, based on these 12 key factors, we designed a conceptual model (called two-gap model) explaining an intra-MNC’s knowledge transfer. It's more concise and systematic than the Knowledge Transfer Analysis (KTA) framework. Third, based on a two-gap model, we put forward several propositions which depicted how to reduce knowledge gap between HQs and overseas subsidiaries. We believe that the two-gap model could help a MNC’s knowledge transfer process and can be utilized for the successful outcome of knowledge transfer.