Bekoeva D.D., Gorohova E.Y.

Managing Knowledge Transformation in Multinational Organizations

 

Summary. The present article is devoted to the main social mechanisms of knowledge transformation and knowledge exchange in multinational organizations. These mechanisms contain socialization, externalization, internalization and combination. We substantiate the need of considering a number of specific features of the personnel of a multinational organization when dealing with these social mechanisms of knowledge transformation and knowledge exchange (the need of managed and consistent employees’ adaptation to a new cultural environment, taking into account the period of foreign specialist’s residence in the country and tenure of employment and other). We suggest several methods in the frames of knowledge transformation and knowledge exchange managing in the multinational organization including arrangement of conditions for free and continual communication and interaction of the employees, giving possibility of teaming up with others (working in pair or in three) and other. It is concluded that knowledge exchange in the multinational organization is a comprehensive many-sided process that requires actualizing knowledge about the mechanisms of knowledge transformation.

In the present-day world there are more and more organizations that extend their business outside the borders of the country of origin, that appear on the international scene, establish offices and joint ventures around the world. In the offices where employees of different nationalities work together there appear a unique resource and potential – collective knowledge, skills, experience of the multinational personnel which can substantially enrich the organization activities if managed consistently and efficiently. In this article we suggest an approach to solving some problems concerned with knowledge transformation and knowledge exchange managing in a multinational organization.

Team-work and also new knowledge acquiring and creation require active information exchange between employees of a multinational organization. Knowledge substantially transforms during its transfer, knowledge form is changing, new knowledge is being created and enriched, and knowledge may be increased quantitatively and qualitatively1. In order to effectively manage the process of knowledge and information exchange in the organization it is important to know the mechanisms of knowledge transformation. We note that knowledge transformation takes place not only during its transfer and exchange but also during its creation, acquiring, application. However cultural specificity of knowledge transformation during knowledge transfer from a representative of a national culture to a representative of another national culture, or during knowledge exchange between them, is of particular importance in a multinational organization.

The main mechanisms of knowledge transformation can be specified if regarded in a multinational organization.

1. Socialization. During formal and informal cooperation of the employees of a multinational organization tacit knowledge is transferred from employees to employees or an exchange of tacit knowledge takes place2. This process can be regarded as transformation of tacit (subjective) knowledge of an individual to tacit (subjective) knowledge of another individual. This conversion takes place during one individual observation of another individual work (of the one who is more experienced, competent, knowing); during one individual imitation of another individual work (of the one who is more experienced, competent, knowing) by way of involuntary imitation or purposeful modeling; during involuntary empathy or subjective comprehension of another individual experience3. Supervisor can not directly manage or control individual tacit knowledge transformation into tacit knowledge of other individuals as far as this process is mostly involuntary or half-realized. However indirect managing is possible mostly through arranging conditions for such transfer and transformation. We suggest using the following methods in the frames of managing human resources in a multinational organization:

·         arranging conditions for free and continual intercourse and team-work: individual working places at a short distance from each other, decent time regulations and limits (attention to the result but not to the process), minimal control of an individual work time devotion, permission to talk on any topic during working time and during tasks fulfillment (control of the result but not of the process);

·         arranging possibility for employees to observe each other’s work, to move with ease from individual working place to the working place of a colleague, to come to other departments and watch colleagues from other department at work (it is particularly important for inexperienced or new employees). It will do an inestimable good to a foreign specialist who has to adapt to personnel and work in new environment;

·         giving possibility to employees to work in pairs or in threes at first time or to be taught and trained working in pairs or in threes. A working pair where foreign and native employees cooperate serves several purposes in the organization (on the assumption of employees’ compatibility, sympathy, comfortable communication).

Firstly, working in pair the employees get to know each other closely, that further adaptation of the newcomer, helps transferring tacit cultural knowledge (subjective, not realized) from the representative of one culture to the representative of another culture (including nonverbal signs, frames, scripts, scenarios, mental models).

Secondly, professional knowledge transferring on a not-realized level takes place (as an example, one employee can have a personal working base of external contacts with representatives of different organization, another employee who has access to it and can freely read the correspondence gets subjective notion about each contact and may also use these knowledge in his work).

Thirdly, there takes place involuntary transferring of knowledge about knowledge of each other (metaknowledge). It helps the employees to turn for advice to each other in further work and also to give necessary information to each other even before a request.

Fourthly, there takes place transferring stereotypes of social knowledge – a stereotype of communication with a representative of a foreign culture is built (an image of a generalized representative of a foreign culture is formed). This process is an advantage and a disadvantage of working in pair. This can be turned into an advantage if intercultural communication will not be limited to the intercourse with one representative, but the employee of the local office is given an opportunity to get to know representatives of other age groups, different status groups within this foreign culture. In any case a foreign / native specialist learns to communicate in a multinational environment, therefore working in pair is a sort of training (social and psychological) for future cooperation in a working group.

·         inclusion of a more experienced employee into a group of less experienced employees4. This method is used by global companies (for example, «LEGO») when establishing a branch office in a country: the personnel of the branch office consist of native country employees, then one or two experienced specialists are included to the branch office team from the head office (these specialists may be even not of management level) in order to transfer main office values and knowledge to the branch establishment.

2. Externalization is the second mechanism of knowledge transformation that is based on tacit knowledge conversion into explicit knowledge5. There can be used the following method to effect this conversion: the receiver of the knowledge can formalize the subjective knowledge of the sender.

One employee (the sender) transfers his subjective knowledge to another employee (the receiver) on a not realized or half-realized level during communication or being watched or imitated. And the employee who receives this tacit knowledge transforms it from a sphere of not realized processes to the sphere of realization so that the knowledge is identified and formalized. This can be made by way of writing down one’s observations so that it could be further formed as technological card or instruction. Also there can be made video / audio recordings of the experienced employee work. If the information is too voluminous, too difficult for recording it at the moment, this information could be identified in verbal form and stored individually by the employees who received it. In order to organize knowledge formalization and knowledge recording the organization should stimulate these processes: firstly, arranging appropriate conditions that could facilitate cooperation, secondly, encourage and/or oblige employees to record subjective individual knowledge. For example, if there is an opportunity to include a foreign specialist into a working group of native employees on a limited period of time, these native employees could get a task to record the received knowledge during joint work and learning and then to use it in further work.

It is important to make this process open, to inform the both sides of the process of the aim of such formalization, to be sure that neither side has objections to this approach. Manager should clear up the advantages of such work: the advantages for the employer conveying his knowledge are the possibilities to teach others, to raise his authority, to realize his tacit knowledge, to bring value to the organization and other; the advantages for the employer formalizing and recording new knowledge are the possibilities to learn, to do creative work of formalizing unique experience of the foreign specialist and forming it as a new technology, to get experience of communicating the foreign specialist and other.

3. Internalization is the third mechanism of knowledge transformation that is based on formalized knowledge conversion into subjective tacit knowledge. The process takes place when formalized knowledge is implemented in practice. A foreign specialist acts quite often as a consultant and transfers knowledge during presentations, speeches, conferences, discussions. If the employees of the local office fulfills tasks under his direct control or supervision and tries to implement new methods of work, new knowledge is gradually internalizing and converting into subjective experience of each employee using formalized knowledge in practice. This process can be managed by way of stimulating implementation of new knowledge introduced by a foreign specialist into a working group of the local office (or implementation of new knowledge gained in local office by a foreign specialist – if there is an objective to transfer local knowledge to a foreign office). During this temporary supervision of the specialist transferring his knowledge, check-up of work and knowledge adoption by the employees of the local office takes place and correction should follow in case of their incorrect subjective interpretation of the received knowledge.

4. Combination is the forth mechanism of knowledge transformation which is based on formalized knowledge conversion into new formalized knowledge. In this process knowledge reforming takes place and this is aimed to improve existing methods of work. For example, a foreign specialist transfers his knowledge to employees of the local office during discussions, presentations, meetings and then the received knowledge is adapted with consideration of local conditions, rules, laws by local specialists for solving local problems and making adapted instructions and technologies.

To crown it all, we have considered four main mechanisms of knowledge transformation in multinational organizations. The easier knowledge is transferred from one employee to another and return back during feedback, the better the personnel and the organization develop. In this respect knowledge exchange better illustrates the processes of knowledge transferring in the organization than knowledge conveyance, because exchange presupposes feedback: knowledge is conveyed from the sender to the receiver and than returns back enriched by the receiver’s understanding and interpretation, the sender and the receiver exchange their roles.

As it was already mentioned, knowledge transformation takes place not only during knowledge exchange but also during knowledge creation, acquiring and implementing in an organization. In this respect we may point out perspective directions for future investigation, namely, description of methods and mechanisms of knowledge transformation of multinational organization personnel during joint or individual creation, acquiring, implementing of knowledge and also searching for possibilities to raise these processes effectiveness. Carrying out researches and solving problems in the sphere of knowledge transformation gives new possibilities of raising effectiveness of cooperation, individual work and also joint and individual learning in multinational organizations.

 

 

BIBLIOGRAPHY

 

1. Garcia-Perez A., Mitra A. Tacit Knowledge Elicitation and Measurement in Research Organisations: a Methodological Approach // Electronic Journal of Knowledge Management, Vol. 5, № 4, 2007. – P. 373 - 386;

2. Garcia-Perez A., Ayres R. Collaborative Development of Knowledge Representations – a Novel Approach to Knowledge Elicitation and Transfer // Electronic Journal of Knowledge Management, Vol. 7, № 1, 2009. – P. 54 – 62.

3. Milton N. Knowledge Management: For Teams and Projects. – Oxford: Chandos Publishing (Oxford) Limited, 2005;

4. Neve T.O. Right Questions to Capture Knowledge // Electronic Journal of Knowledge Management, Vol. 1, № 1, 2003. – P. 47 – 54.

5. Sveiby K.E. Transfer of Knowledge and the Information Processing Professions // European Management Journal, Vol. 14, No. 4, 1996. – P. 379 – 388.

6. Мильнер Б.З., Смирнова В.Г., Румянцева З.П., Блинникова А.В. Управление знаниями в корпорациях. – М.: Дело, 2006. – С. 69 – 71.

7. Холден Н. Дж. Кросс-культурный менеджмент: концепция когнитивного менеджмента. – М.: ЮНИТИ-ДАНА, 2005.

8. Шелер М. Проблемы социологии знания. // Парадигмы социологии знания: Хрестоматия. – М.: Наука, 2007. – С. 108 – 125.

 

 

 

 

1 Мильнер Б.З., Смирнова В.Г., Румянцева З.П., Блинникова А.В. Управление знаниями в корпорациях. – М.: Дело, 2006. – С. 69 – 71.

2 Neve T.O. Right Questions to Capture Knowledge // Electronic Journal of Knowledge Management, Vol. 1, № 1, 2003. – P. 47 – 54.

3 Шелер М. Проблемы социологии знания. // Парадигмы социологии знания: Хрестоматия. – М.: Наука, 2007. – С. 108 – 125.

4 Milton N. Knowledge Management: For Teams and Projects. – Oxford: Chandos Publishing (Oxford) Limited, 2005; Холден Н. Дж. Кросс-культурный менеджмент: концепция когнитивного менеджмента. – М.: ЮНИТИ-ДАНА, 2005.

5 Garcia-Perez A., Mitra A. Tacit Knowledge Elicitation and Measurement in Research Organisations: a Methodological Approach // Electronic Journal of Knowledge Management, Vol. 5, № 4, 2007. – P. 373 - 386; Garcia-Perez A., Ayres R. Collaborative Development of Knowledge Representations – a Novel Approach to Knowledge Elicitation and Transfer // Electronic Journal of Knowledge Management, Vol. 7, № 1, 2009. – P. 54 – 62.