Knowledge Transfer in MNEs: A Comparative Study of Chinese and European MNEs in Africa

This paper investigates the process of managerial knowledge transfer applying network analysis drawing on a unique survey of employees in 8 MNEs in Ghana. Using Marcov Chain Monte Carlo (MCMC) simulation with Exponential Random Graph Models, we find the structure of firm networks affects knowledge transfer in all firms, while there are significant differences in the mechanism of knowledge transfer between Chinese and European (EU) MNEs. Our findings suggest that culture difference of Chinese and EU MNEs, as well as the organisational structure, impact knowledge transfer within firms. Our study implies that language and culture training for employees in Chinese MNEs is vital to help alleviate communication problems for managerial knowledge transfer. Moreover, Chinese firms would re-organise their firm structures to enhance knowledge transfer.