The role of ICT-based information systems in knowledge transfer within multinational companies

Abstract

This paper focuses on the internal network of multinational companies (MNC) and aims to investigate the role of information systems (IS) based on modern information and communication technologies (ICT) in transferring knowledge between different plants of the MNC, a subject still debated in the literature. To shed more light on this relationship, we propose that in the context of the MNC, the plant’s role in the knowledge network has to be taken into consideration. The analysis is based on a case study approach with interviews conducted at thirteen manufacturing plants. Data analysis shows that plants can have two basic roles in the knowledge network: knowledge senders or knowledge receivers. Knowledge sending plants see IS less supportive in transferring knowledge, while most knowledge receivers rely heavily on some form of IS. Furthermore, IS proved unhelpful if the quality of data entered in the system was low, or when strategic support to allocate resources to use IS was missing.