This paper tests empirically the effectiveness of information and communications technology (ICT) knowledge transfer and adoption in the multinational enterprise. The research supports the proposition that absorptive capacity and perceptions of procedural fairness jointly determine such effectiveness, especially in cases of high tacit knowledge transfers. We collected data from senior ICT representatives from eighty-six Canadian subsidiaries of foreign owned firms that have recently experienced significant ICT transfers from abroad, mandated by the parent organization. The perceived success of the ICT knowledge transfer as well as the ICT adoption has varied widely across these firms. Our findings suggest that in a situation of substantial knowledge tacitness, the combination of high levels of absorptive capacity and procedural fairness is critical to effective knowledge transfer and ICT adoption. We find that higher levels of procedural justice reinforce the positive impact of higher levels of absorptive capacity. ICT projects do vary in the level of tacit knowledge that needs to be transferred, and in the presence of high tacit knowledge we find a stronger positive impact of procedural justice.
Bachor, Vernon and Verbeke, Alain, "AN INTEGRATIVE MODEL OF INFORMATION AND COMMUNICATIONS TECHNOLOGY (ICT) KNOWLEDGE DIFFUSION IN THE MULTINATIONAL ENTERPRISE" (2006). DIGIT 2006 Proceedings. 1.