The Effectiveness of Socialization in the Transfer of Tacit Knowledge across Borders

Abstract

International business studies have investigated the rise of multinational corporations from two diverse perspectives. Proponents of internalization theory have explored this phenomenon in terms of the transaction costs of the market. Other researchers have approached it through the advantages of organization over the market. The more efficient transfer of knowledge through an organization than through the market is one of these benefits, and the later school of thought, in fact, has selected this factor as the most salient one behind the emergence of transnational businesses. My empirical research offers insight into the process by which socialization effectively transfers tacit knowledge both within organizations and by them across international borders.