¹Norwegian School of Economics and Business (NHH), Bergen, Norway

Correspondence: PN Gooderham, Norwegian School of Economics and Business (NHH), Breiviksveien 40, Bergen 5045, Norway. Tel: +47 9093 4942; E-mail: paul.gooderham@nhh.no

Received 24 August 2006; Accepted 6 November 2006.

Abstract

While the possession of knowledge-based assets endows a firm with the potential to benefit following internationalization, a distinct ability to transfer knowledge efficiently is also required. The application of social capital theory has contributed important insights into the processes underlying knowledge transfer within the MNC. However, from a practitioner stand point this perspective needs to be supplemented in two ways. First, there is a need to take into account the influence of the external environment and second a need to incorporate the role dynamic capabilities, in the form of management-initiated practices, can play in enhancing levels of social capital. The latter include transmission channels, socialization mechanisms and motivational mechanisms. It is these mechanisms that represent the key modifiable elements in facilitating knowledge flows. The paper concludes with a conceptual model for the study of intra-MNC knowledge transfers that embraces the various facets of social capital, the influence of the external environment and modifiable practices.