Published Online:https://doi.org/10.5465/amr.1999.1893938

To examine the phenomenon of the transnational transfer of strategic organizational practices within multinational companies. I use a cross-disciplinary approach. After conceptualizing the success of a transfer as the institutionalization of the practice at the recipient unit. I develop a multilevel model of transfer success, based on the notion of the contextual embeddedness of the process of transfer. I propose that three sets of factors at three levels—country, organization, and individual—affect transfer success reflecting social, organizational, and relational embeddedness. Finally, I discuss the theoretical and practical implications of this research.

REFERENCES

  • Adler N. 1995. International dimensions of organizational behavior (2nd ed). Boston: PWS-Kent. Google Scholar
  • Bartlett C. , Ghoshal S. 1997. Transnational management: Text, cases, and readings in cross-border management (2nd ed.). Boston: Irwin. Google Scholar
  • Berger M. , Luckman T. 1967. The social construction of reality. New York: Doubleday. Google Scholar
  • Boulgarides J. , Oh M. 1985. A comparison of Japanese, Korean, and American managerial decision styles. Leadership and Organization Development Journal, 6: 9–11. Google Scholar
  • Bromiley P. , Cummings L. 1995. Transaction costs in organizations with trust. In Bies R.Lewicki R.Sheppard B. (Eds), Research in negotiation in organizations, vol. 5: 219–247. Greenwich CT: JAI Press. Google Scholar
  • Capelli P. , Sherer P. 1991. The missing role of context in OB: The need for a meso level approach. Research in Organizational Behavior, 13: 55–110. Google Scholar
  • Chatman J. , Jehn K. 1994. Assessing the relationship between industry characteristics and organizational culture: How different can you be? Academy of Management Journal, 37: 522–553.AbstractGoogle Scholar
  • Child J. , Kieser A. 1981. Development of organizations over time. In Nystrom P.Starbuck W. (Eds), Handbook of organizational design, vol. 1: 28–64. New York: Oxford University Press. Google Scholar
  • Child J. , Rodrigues S. 1996. The role of social identity in the international transfer of knowledge through joint ventures. In Clegg S.Palmer G. (Eds), The politics of management knowledge: 46–68. London: Sage. Google Scholar
  • Coleman J. 1988. Social capital in the creation of human capital. American Journal of Sociology. 94: 95–120. Google Scholar
  • Coleman J. 1990. Foundations of social theory. Cambridge, MA: Belknap Press of Harvard University Press. Google Scholar
  • Cummings L. , Bromiley 1995. The Organizational Trust Inventory (OTI): Development and validation. In Kramer R.Tyler T. (Eds), Trust in organizations: Frontiers of theory and research: 302–330. Thousand Oaks: CA: Sage. Google Scholar
  • Ghoshal S. , Bartlett C. 1988. Creation, adoption, and diffusion of innovations by subsidiaries of multinational corporations. Journal of International Business Studies, 19: 365–388. Google Scholar
  • Graham J. 1985. The influence of culture on business negotiations. Journal of International Business Studies, 16: 81–96. Google Scholar
  • Granovetter M. 1992. Problems of explanation in economic sociology. In Nohria N.Eccles R. (Eds), Networks and organizations: Structure, form and action: 25–56. Boston: Harvard Business School Press. Google Scholar
  • Hofstede G. 1980. Culture's consequences: International differences in work-related values. Beverly Hills, CA: Sage. Google Scholar
  • Hofstede G. 1991. Cultures and organizations. New York: McGraw-Hill. Google Scholar
  • Hofstede G. , Bond H. 1988. The Confucius connection: From cultural roots to economic growth. Organizational Dynamics, 16(Autumn): 4–21. Google Scholar
  • House R. , Rousseau D. , Thomas-Hunt M. 1995. The meso paradigm: A framework for the integration of micro and macro organizational behavior. In Cummings L. L.Staw B. M. (Eds), Research in organizational behavior, vol. 17: 71–114. Greenwich, CT: JAI Press. Google Scholar
  • Janssens M. , Brett J. , Smith F. 1995. Confirmatory cross-cultural research: Testing the viability of a corporation-wide safety policy. Academy of Management Journal, 38: 364–382.AbstractGoogle Scholar
  • Kagan J. 1958. The concept of identification. Psychological Review, 65: 296–305. Google Scholar
  • Kedia B. , Bhagat R. 1988. Cultural constraints on transfer of technology across nations: Implications for research in international and comparative management. Academy of Management Review, 13: 559–571.AbstractGoogle Scholar
  • Kogut B. 1991. Country capabilities and the permeability of borders. Strategic Management Journal, 12: 33–47. Google Scholar
  • Kogut B. , Singh H. 1989. The effects of national culture on the choice of entry mode. Journal of International Business Studies. 19: 411–432. Google Scholar
  • Kogut B. , Zander U. 1992. Knowledge of the firm, combinative capabilities, and the replication of technology. Organization Science, 3: 383–397. Google Scholar
  • Kogut B. , Zander U. 1993. Knowledge of the firm and the evolutionary theory of the multinational corporation. Journal of International Business Studies. 4: 625–645. Google Scholar
  • Kostova T. 1997. Country institutional profile: Concept and measurement. Proceedings of the Academy of Management: 180–184. Google Scholar
  • Kroeber A. , Kluckholm F. 1952. Culture: A critical review of concepts and definitions. Peabody museum papers, vol. 47: 1. Cambridge, MA: Harvard University Press. Google Scholar
  • Lincoln J. , Hanada M. , McBride K. 1986. Organizational structures in Japanese and US manufacturing. Administrative Science Quarterly, 31: 338–364. Google Scholar
  • Locke E. 1976. The nature and causes of job satisfaction. In Durnette M. D. (Ed.), Handbook of industrial and organizational psychology: 1297–1349. Chicago: Rand McNally. Google Scholar
  • March J. , Simon H. 1958. Organizations. New York: Wiley. Google Scholar
  • Markus H. , Zajonc R. B. 1985. The cognitive perspective in social psychology. In Lindzey G.Aronson E. (Eds.), Handbook of social psychology (3rd ed.), vol. 1: 137–230. New York: Random House. Google Scholar
  • Mathieu J. , Zajac D. 1990. A review and meta-analysis of the antecedents, correlates, and consequences of organizational commitment. Psychological Bulletin, 108: 171–194. Google Scholar
  • Merton R. 1968. Social theory and social structure. New York: Free Press. Google Scholar
  • Meyer A. , Rowan B. 1977. Institutionalized organizations: Formal structure as myth and ceremony. American Journal of Sociology, 83: 340–363. Google Scholar
  • Mowday R. , Steers R. , Porter L. 1979. The measurement of organizational commitment. Journal of Vocational Behavior, 14: 224–247. Google Scholar
  • Mowday R. , Sutton R. 1993. Organizational behavior: Linking individuals and groups to organizational contexts. Annual Review of Psychology, 44: 195–229. Google Scholar
  • Nahapiet J. , Ghoshal S. 1998. Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23: 242–266.LinkGoogle Scholar
  • Nelson R. , Winter S. 1982. An evolutionary theory of economic change. Cambridge, MA: Belknap Press of Harvard University Press. Google Scholar
  • Nohria N. , Ghoshal S. 1997. The differentiated network: Organizing multinational corporations for value creation. San Francisco:, CA: Josey-Bass. Google Scholar
  • O'Reilly C. A. 1991. Organizational behavior: Where we've been, where we're going. Annual Review of Psychology. 42: 427–458. Google Scholar
  • O'Reilly C. A. , Chatman J. 1986. Organizational commitment and psychological attachment: The effects of compliance, identification, and internalization on prosocial behavior. Journal of Applied Psychology, 71: 492–499. Google Scholar
  • O'Reilly C. A. , Chatman J. , Caldwell D. 1991. People and organizational culture: A profile comparison approach to assessing person-organization fit. Academy of Management Journal, 34: 487–516.AbstractGoogle Scholar
  • Parsons T. 1960.A sociological approach to the theories of organizations. In Parsons T. Structure and process in modem societies: 16–58. Glencoe, IL: Free Press. Google Scholar
  • Pfeffer J. 1997. New directions for organization theory: Problems and prospects. New York: Oxford University Press. Google Scholar
  • Pfeffer J. , Salancik J. 1978. The external control of organizations: A resource dependence view. New York: Harper & Row. Google Scholar
  • Pierce J. , Van Dyne L. , Cummings L. 1992. Psychological ownership: A conceptual and operational exploration. Southern Management Association Proceedings: 203–211. Google Scholar
  • Powell A. , DiMaggio P. 1991. The new instutitionalism in organizational analysis. Chicago: University of Chicago Press. Google Scholar
  • Robinson P. 1994. Applying institutional theory to the study of the multinational enterprise: Parental control and isomorphism among personnel practices in American manufacturers in Japan. Unpublished doctoral dissertation, Massachusetts Institute of Technology, Boston. Google Scholar
  • Rogers E. 1980. Diffusion of innovations. New York: Free Press. Google Scholar
  • Rousseau D. 1990. Quantitative assessment of organizational culture: The case for multiple measures. In Schneider B. (Ed.), Frontiers in industrial and organizational psychology, vol. 3: 153–192. San Francisco: Jossey-Bass. Google Scholar
  • Schein E. 1985. Organizational culture and leadership. San Francisco: Jossey-Bass. Google Scholar
  • Schneider S. 1986. National versus corporate culture: Implications for human resource management. Human Resource Management, 27: 231–246. Google Scholar
  • Scott R. 1995. Institutions and organizations. Thousand Oaks, CA: Sage. Google Scholar
  • Selznick P. 1957. Leadership in administration: A sociological interpretation. New York: Harper & Row. Google Scholar
  • Staw B. 1991. Dressing up like an organization: When psychological theories can explain organizational action. Journal of Management, 17: 805–819. Google Scholar
  • Strauss A. 1982. Interorganizational negotiations. Urban Life, 11: 350–367. Google Scholar
  • Szulanski G. 1996. Exploring internal stickiness: Impediments to the transfer of best practice within the firm. Strategic Management Journal, 17 (Winter Special Issue): 27–43. Google Scholar
  • Winter S. 1990. Survival, selection, and inheritance in evolutionary theories of organization. In Singh J. V. (Ed.), Organizational evolution: New directions: 269–297. New-bury Park, CA: Sage. Google Scholar
  • Zaheer A. , McEvily B. , Perrone V. 1998. Does trust matter? Exploring the effects of interorganizational and interpersonal trust on performance. Organization Science, 9: 141–159. Google Scholar
  • Zaheer S. 1995. Overcoming the liability of foreignness. Academy of Management Journal, 38: 341–363.AbstractGoogle Scholar
  • Zander U. , Kogut B. 1995. Knowledge and the speed of the transfer and imitation of organizational capabilities: An empirical test. Organization Science, 6: 76–92. Google Scholar
  • Zucker L. 1991. Postscript: Microfoundations of institutional thought. In Powell A.DiMaggio P. (Eds.), The new institutionalism in organizational analysis: 103–106. Chicago: University of Chicago Press. Google Scholar
Academy of Management
  Academy of Management
  555 Pleasantville Road, Suite N200
  Briarcliff Manor, NY 10510-8020, USA
  Phone: +1 (914) 326-1800
  Fax: +1 (914) 326-1900