Communication and Knowledge Flows in Transnational R&D Projects

Multinational companies exist in part because of their ability to tap into worldwide centers of expertise and disseminate this knowhow within the global firms. However, sharing knowledge efficiently is difficult even in highly networked organizations. Knowledge flows are hindered by spatial distance, costs of set-up and maintenance of communication structures, and lack of trust between distant sites. This chapter focuses on three key dimensions of virtual organizations: 1) knowledge transfer, 2) communication quality, and 3) coordination, and analyzes them in transnational R&D projects in industrial companies. Based on a cross-case comparison along the three dimensions, this chapter proposes inter-, intra- and multilocal aspects of virtual R&D teams, suggests three propositions, and concludes with managerial implications.