Cross-border transfer of knowledge: Cultural Lessons from Project GLOBE

Summary: Cross-border transfer of knowledge: Cultural Lessons from Project GLOBE

• A huge increase in cross-border knowledge has increased (and will continue to increase) the need for effective cross-border knowledge transfer.

A real-life case: NORDED (a Nordic European business school)

• Wanted to establish a base in South Asia. Signed agreement with TAI BANK to train managers about leadership and management of change. It was the largest investment the bank had ever made in training and development. Goal was to help TAI BANK transition from local bank to major regional player. Cultural differences soured the relationship between the two parties and could’ve been avoided if they had been identified ahead of time. TAI BANK’s senior management had a top-down communication and decision making style that frustrated middle management. TAI BANK made curriculum changes without discussing it with NORDED.
• The cultural differences between NORDED and TAI BANK were substantial (measured by the avg. distance between rankings on all 9 dimensions listed below), especially power distance differences and differences in uncertainty avoidance.
• Strong personal ties were not developed between the 2 organizations, so the continuity of the program was in doubt. Regular high level contact could have reduced obstacles.
• Taking time to articulate common goals and criteria for success would have helped.
• GLOBE = Global Leadership and Organizational Behavior Effectiveness. Studied 62 societies worldwide. Goal of project: to develop empirically based theories to describe, understand and predict the impact of specific cultural variables on leadership effectiveness and organizational cultures in societies.

Nine cultural dimensions:

1. Power Distance
2. In-Group Collectivism
3. Institutional Collectivism
4. Uncertainty Avoidance
5. Future Orientation
6. Gender egalitarianism
7. Assertiveness
8. Humane Orientation
9. Performance Orientation

Effective knowledge transfer is a function of:

1. Value of the source unit’s store of knowledge
2. Motivational disposition of the unit that sources the knowledge – shaped by national culture and motivational disposition
3. Existence and richness of transmission channels – affected by cultural differences
4. Motivational disposition of the unit to which the knowledge is directed
5. Absorptive capacity or assimilation ability of the target unit.

GLOBE Advice on cross-border knowledge transfer:

1. Define common goals in advance of knowledge transfer. First need to agree on the value of the knowledge to be transferred.
2. Map the cultural profiles. Identify cultural differences that can have a negative impact and explore ways to address them.
3. Assign relationship managers in cross-cultural transfers of knowledge. All parties should have cross-culturally aware individuals accountable for the success of the transfer.
4. Learn from knowledge transfer – view it as a learning experience.

Melissa Efferth