Replication and Adaptation of Knowledge Transfer within Episodes of An MNC Subsidiary

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Jamsari Alias
Norazila Mat
Nazri Muslim
Nor Afian Yusof
Wan Zulkifli Wan Hassan
Aminudin Basir @ Ahmad

Abstract

With the proliferation of multinational corporations (MNCs), there is an increasing imperative to understand how parent companies oversee their subsidiaries' operations and transfer knowledge to them. Japanese firms have pioneered this area, employing strategies such as the Toyota Production System (TPS) to propagate the Japanese manufacturing ethos and maintain quality and control in their international operations. While much discourse surrounds the transfer of Japanese manufacturing expertise, there remains a paucity of understanding regarding how these methods are acquired and integrated into the subsidiaries' operations. This article explores the parent company's perspective on transferring manufacturing knowledge to its subsidiary. A comprehensive qualitative study was therefore conducted within a Japanese multinational's subsidiary, focusing on three major manufacturing initiatives or philosophies: "TPS," "TPM," and "TS." Data was collected through 52 in-depth interviews with project participants, along with documentation and moderate-participant observations. By examining the subsidiary’s procedures, the development of the entire process, and, notably, the use of episodes in snapshots to elucidate the knowledge transfer process, this study enhances our understanding of knowledge transfer. Furthermore, this article elucidates how replication and adaptation are cultivated and become central elements in episodic knowledge transfer.

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