Knowledge transfer objects and innovation performance

Local knowledge of globally distributed subsidiaries may be a valuable source of innovation for headquarters. However, acquiring local knowledge of subsidiaries and transforming it into innovation performance remains a challenge for many multinational companies. In this paper, based on analysis of eleven multinational companies present in Danish industry, we characterize different approaches to the use of knowledge transfer objects (static vs. dynamic), and discuss the respective effect on innovation performance. A conceptual framework is proposed to classify such different approaches on the basis of the characteristics of the knowledge transfer processes and use of the knowledge transfer objects.