Accessing diverse knowledge for problem solving in the MNC: A network mobilization perspective

Abstract

Research summary The fundamental challenge of problem solving is synthesizing diverse knowledge for solution development. This paper addresses the trade-off between knowledge diversity, i.e., approaching the most relevant individual to maximize the likelihood that s/he possesses diverse knowledge and the ability to access, i.e., recognize and assimilate this knowledge. We examine this trade-off in relation to managers in subsidiaries of multinational corporations (MNCs) and two types of diverse knowledge—novel knowledge and specialist expertise. We use a network mobilization perspective and arguments on network range within and across organizational boundaries, testing our hypotheses on a dataset of 838 ties from 120 managers leading problem solving projects. Our study offers implications for the knowledge-based view of the MNC as well as the problem solving perspective in strategy.

Managerial summary We examine where managers in subsidiaries of multinational corporations (MNCs) access knowledge to solve non-routine problems and, thus, create new solutions for the firm. When accessing knowledge managers faces the challenge of, on the one hand, reaching to individuals holding diverse knowledge, while, on the other hand, the need to be able to integrate this knowledge. We find that accessing network ties from an MNC unit in another country location but same function increases the likelihood of accessing novel knowledge. Whereas, accessing network ties from another function in an MNC unit located in another country and from an external organization increases the chances of accessing specialist expertise. Overall, we provide insights for problem solvers in organizations, notably subsidiary managers.