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Under a Creative Commons license Open access AbstractBuilding on the knowledge-based view of the firm, this study investigates the usefulness of two organizational integration mechanisms (i.e., formal inter-unit communication and informal connectedness and shared values) to effectively transfer knowledge between MNC units and explores how their effectiveness is affected by different dimensions of cross-national distance. Data on 131 knowledge transfer relationships between units of five Spanish MNCs were used to test the hypotheses. Results reveal that, although both mechanisms are positively associated with knowledge transfer effectiveness, the effect of formal inter-unit communication is comparatively higher. Moreover, this formal integration mechanism seems to work independently of the type of distance that separates the units involved in the transfer. By contrast, the effectiveness of informal integration mechanisms is influenced by economic, geographic and administrative dimensions of distance. Adopting a contingent perspective, and taking into account the multidimensional character of cross-national distance, this article contributes to the literature on knowledge management in international firms by showing which organizational integration mechanisms are more useful to transfer knowledge within MNCs depending on the type of distance that separate their units. KeywordsKnowledge transfer Multinational corporations (MNCs) Organizational integration mechanisms Cross-national distance Cited by (0)© 2021 The Authors. Published by Elsevier Inc. Organizational structure refers to the way you organize the management and decision-making process of your business to maximize efficiency and productivity. Every business has unique challenges, which means that choosing the proper structure is dependent on the personalities, skills and talents of your staff as well as the type of business you operate. Horizontal and vertical organizations are two of the most common types of business structures. Understanding the benefits and drawbacks of each can help you make the right decision for your company. Horizontal Organization DefinedIf your company culture is all about tapping into the creativity and imagination of your staff and empowering them to do their jobs without micromanagement, then you may want to set up a horizontal organizational structure. In this structure, you grant employees the authority to make decisions without having to obtain executive approval. A horizontal organization has few – if any – managers because the focus is on empowering the staff members and removing any barriers between the executive level and the staff level. Teamwork, collaboration and the exchange of ideas are the hallmarks of a horizontal organization. Vertical Organization DefinedBusinesses with a large number of employees often choose to run a vertical organization, which is typically structured like a pyramid with executives at the top, midlevel managers in the middle, and low-level managers and employees at the bottom. In vertical organizations, you and other senior-level executives make all the major decisions and communicate those decisions to midlevel managers. These managers develop methods to implement your decisions and communicate these methods to the low-level managers that are responsible for supervising your employees as they go about their daily tasks. This top-down structure has a defined chain-of-command and strict protocols regarding how your employees can make suggestions that reach the upper levels of your company. Advantages of Horizontal and Vertical OrganizationsThe main advantage of a horizontal organization is that employees are free to make important decisions without feeling as though management is second-guessing them. This empowerment can boost morale and motivation and spur creativity in your workers. Decision-making in horizontal organizations is fast because there are no barriers between workers and executives. The primary advantage of vertical organizations is that all employees know and understand their roles and responsibilities, which can increase productivity. Vertical organizations motivate workers to seek management positions, which often results in them working efficiently to achieve performance standards. Disadvantages of Horizontal and Vertical OrganizationsThe main disadvantage of horizontal organizations is that employees may not always make sound decisions without managerial supervision, and those bad decisions can impact your business. Another disadvantage is that without managerial authority, employees may have a hard time achieving consensus when working in teams. The primary disadvantage of vertical organizations is that rank-and-file employees rarely speak or meet with executives. Decision-making can be slow because there are so many management layers. Which of the following uses teams to combine vertical and horizontal structures?Matrix designs use teams to combine vertical with horizontal structures.
Which of the following describes an organizations shared values and beliefs and its reason for being?Company culture describes the shared values, goals, attitudes and practices that characterize an organization. Aspects such as working environment, company policies and employee behavior can all contribute to company culture.
Which of the following mechanism does not provide an improved degree of horizontal coordination and control?Which of the following mechanisms does not provide an improved degree of horizontal coordination and control? Rules and plans are lower on the ladder of mechanisms for vertical linkage than is adding positions to the hierarchy.
What refers to the number of levels within an organization?What's it: Levels of hierarchy refer to the various levels within the organizational structure at which authority and responsibility are attached. Higher levels have higher authority and decision-making power. In addition, they are responsible for monitoring and coordinating the work of lower levels.
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Vertical information sharing refers to the need for the coordinated mechanisms to link the
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