Managing knowledge transfer in a multinational acquisition : a study of the factors that enable acquiring firms to successfully obtain intellectual capital from their acquisitions

摘要

Multinational Companies (MNCs) have gained an extremely important role in today’s businessenvironment. Within these MNCs two major developments can be distinguished, namely theincreasing importance of knowledge management and the big impact of acquisitions. However, boththese developments pose considerable problems for its management. Managing knowledge transferand acquisitions is even more difficult for MNCs than for purely domestic firms, due to geographicdisparity.Since knowledge management and acquisitions play such an important role in today’s MNCs and areexpected to even increase in importance for tomorrow’s, it is essential to continue research in theseareas. In both separate areas extensive research has been conducted, but it is only since recent thatthe two developments have been combined. Therefore, this paper aims to develop a model ofrequired management practices necessary for obtaining the acquired company’s intellectual capital.Only when tacit knowledge transfer takes place, intellectual capital from the acquisition can namelybe transferred to the acquirer.To be able to specify these management practices, extant empirical literature on knowledgemanagement and MNC acquisitions to obtain intellectual capital is discussed and analyzed. Based onthis the model of required management practices is developed. The elements of this model are thenillustrated by the case of Cisco that has a long standing track record of pursuing this type ofacquisition deals successfully.The literature review and development of the model of required management practices necessaryfor obtaining the acquired company’s intellectual capital has led to the formulation of nine areas ofmanagement practices that need to be taken care of. Furthermore six internal and six externalbarriers are pointed out.With regard to these findings it can be concluded that the active management ofintegration/socialization mechanisms and taking care of areas of management practices that increasethe development of social capital are requirements to success for this type of acquisition.Furthermore, actively managing the human side of the deal is necessary to create the required levelof employee retention, involvement and participation. Of course economic and financialconsiderations still play a role in any acquisition deal. However, when the goal is to obtainintellectual capital, the management of these considerations alone is not enough.