Exploring the Roles of Market-Driven Capability and Functional Diversification in Market Knowledge Transfer within MNCs, Vienna, Austria, IISES 33rd International Academic Conference

Drawing upon theory from transnational management and market-driven organization literatures, this study uses both survey and case study data of 162 respondents who works in three multinational corporations (MNCs) to examine the influence of functional diversification, market-driven capability, and cultural distance on a transfer of market knowledge from foreign affiliates to headquarter. The empirical results indicate a strong positive influence of both functional diversification and market-driven capability on a transfer of market knowledge, i.e., customer and competitor intelligence. The qualitative data collected through in-depth interviews with top executives were then leveraged to provide further explanation and support empirical results. Implications for academics and practitioners are also addressed.