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Uppsala University Department of Business Studies Master Thesis 18/01/2007 Influence of national cultural differences on communication and transmission channels in cross-border knowledge transfer A case study of Q-Med AB Supervisor: Rian Drogendijk Authors: Therése Martinsson Sabrina Suikki

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Uppsala University

Department of Business Studies

Master Thesis

18/01/2007

Influence of national cultural differences on communication and transmission channels

in cross-border knowledge transfer

A case study of Q-Med AB

Supervisor: Rian Drogendijk

Authors: Therése Martinsson

Sabrina Suikki

Acknowledgements

This master thesis is the result of ten weeks hard and interesting research. However, it could not

have been done without help. First, we would like to thank our supervisor Rian Drogendijk for

her guidance, assistance and above all for her great patience. Secondly, we would like to thank

Q-Med AB and its Director Human Resources Thomas Holmberg, Manager Internal

Communications Annelie Lundell and Corporate HR Manager Christina Toth for their time and

effort to make this thesis possible. We are also grateful to our fellow students who have been

helpful in providing feedback and useful comments on our work in process. Last but not least, we

would like to thank our families and friends for their support and understanding during this time.

Uppsala University, Sweden

The 18th of January, 2007

Therése Martinsson & Sabrina Suikki

I

Abstract

The purpose of this thesis is to develop an understanding of if/how national cultural differences

influence communication and transmission channels in cross-border transfer of organizational

knowledge. To develop such an understanding a single case study has been conducted on

Q-Med AB, a Swedish knowledge intensive biotechnology/medical device company. The case

study is based on two theories; Gupta & Govindarajan’s (2000) work of four forces that affect

effective knowledge transfer and Project GLOBE’s nine cultural dimensions. Our findings

confirm that national cultural differences do influence communication and transmission channels

when transferring knowledge cross-borders. More specifically, our case study shows that the

cultural differences influencing Q-Med AB’s communication and transmission channels are:

Power Distance, Institutional Collectivism, In-Group Collectivism, Assertiveness and

Performance Orientation. Also language differences are regarded as an important factor by

Q-Med AB. However, the results of this thesis are specific for the company studied. Therefore

our study only contributes with insights, regarding the influence of cultural differences on

communication and transmission channels when transferring knowledge cross-borders, for other

knowledge intensive companies facing global challenges. Our findings and conclusions are

summarized in our own theoretical model, which brings together the two internationally well-

acknowledged theories mentioned above and the results of our case study.

II

Sammanfattning

Syftet med denna uppsats är att skapa en förståelse för om/hur nationella kulturella skillnader

påverkar kommunikation och överföringskanaler i gränsöverskridande organisatorisk kunskaps-

överföring. För att skapa denna förståelse har vi genomfört en fallstudie på Q-Med AB, ett

svenskt kunskapsintensivt bioteknologiskt/medicintekniskt företag. Fallstudien baseras på två

teorier; Gupta & Govindarajan:s (2000) studie om fyra faktorer som påverkar effektiv

kunskapsöverföring och Project GLOBE:s nio kulturella dimensioner. Våra resultat bekräftar att

nationella kulturella skillnader i hög grad påverkar kommunikation och överföringskanaler vid

gränsöverskridande kunskapsöverföring. Mer specifikt visar vår fallstudie att de kulturella

skillnader som påverkar Q-Med AB:s kommunikation och överföringskanaler är: Power

Distance, Institutional Collectivism, In-Group Collectivism, Assertiveness och Performance

Orientation. Språkliga skillnader anses också vara viktiga enligt Q-Med AB. Dock är resultaten

från denna studie specifika för det undersökta företaget. Därmed bidrar vår uppsats endast med

insikter om hur kulturella skillnader påverkar kommunikation och överföringskanaler i

gränsöverskridande kunskapsöverföring för andra kunskapsintensiva multinationella företag.

Våra slutsatser är sammanställda i vår egen teoretiska modell som kombinerar de två ovan

nämnda, internationellt erkända teorier och resultaten från vår fallstudie.

III

Table of contents

1 Introduction ............................................................................ 1

1.1 Background .................................................................................... 1

1.2 Problem statement and research purpose .................................. 2

2 Literature review .................................................................... 4

2.1 Concept of knowledge................................................................... 4 2.1.1 Importance of effective cross-border transfer of knowledge..........5

2.2 Communication and transmission channels............................... 7

2.3 Concept of culture ......................................................................... 9 2.3.1 Project GLOBE and cultural dimensions.........................................10

2.4 Conceptual framework ................................................................ 14

3 Methodology......................................................................... 15

3.1 Research purpose and approach ............................................... 15

3.2 Research strategy, data collection and analysis of data ......... 16

3.3 Sample selection.......................................................................... 17

3.4 Quality standards......................................................................... 18

3.5 Operationalization of the theory ................................................. 21

4 Case study of Q-Med AB ..................................................... 23

4.1 Communication and transmission channels............................. 23

4.2 Cultural differences – Nordic European vs. Latin European and Anglo cultures ....................................................................................... 26

4.2.1 Nine cultural dimensions from Project GLOBE ..............................27

5 Case analysis ....................................................................... 29

5.1 Communication and transmission channels............................. 29 5.1.1 Intensity of communication ..............................................................30

5.2 Cultural differences – Nordic European vs. Latin European and Anglo cultures ....................................................................................... 31

5.2.1 Nine cultural dimensions from Project GLOBE ..............................32

IV

6 Final discussion................................................................... 35

6.1 Findings and conclusions........................................................... 35

6.2 Limitations of our study and implications for future research 37

References ................................................................................. 38

Appendix I – The GLOBE countries in 10 cultural clusters Appendix II – The GLOBE societal cultural scores for Nordic Europe, Latin Europe and Anglo clusters Appendix III – Interview guide in English Appendix IV – Interview guide in Swedish

V

Table of figures Figure 2.1 Effectiveness of cross-border transfer of organizational knowledge……… 6

Figure 2.2 Inter-relations between culture, communication and knowledge transfer… 6

Figure 2.3 Communication process ………………………………………………………. 7

Figure 2.4 Matching process for effective communication ……………………………… 9

Figure 2.5 Conceptual framework ………………………………………………………… 14

Figure 6.1 Theoretical model developed by the Authors………………………………... 36

VI

CHAPTER 1 – INTRODUCTION

1 Introduction

In this chapter background, problem statement and research questions are presented.

Furthermore, the main reasons and motivation for this study are discussed.

1.1 Background

Javidan, Stahl, Brodbeck & Wilderom (2005) point out that globalization of economic activities

is continually increasing and cross-border transactions are becoming more and more important

for companies. For instance, the number of cross-border mergers and acquisitions has augmented

significantly during the past 20 years. In line with the increasing globalization, the need for

effective cross-border knowledge transfer has also enlarged. Gupta & Govindarajan (2000) state

that a company’s knowledge base has the greatest ability to serve as a source of sustainable

differentiation and therefore become the company’s competitive advantage. Since knowledge

transfer is complex, an understanding of this process is not only increasingly crucial for the

success of the company, but also critical for transferring any organizational knowledge across

national and cultural boundaries (Javidan et al. 2005).

When the competition among international companies intensifies, the role of an effective cross-

border transfer of organizational knowledge becomes more crucial, as Javidan et al. (2005) point

out. Since knowledge is embedded in individuals or in organizations and knowledge transfer is

about how individuals and groups communicate and learn from each other, it is highly likely that

the knowledge transfer and communication are influenced by national culture. But cultural

differences do not per se create problems; rather it is the way the cultural differences are

managed that causes problems (ibid). Hence, the fact that the business world is becoming more

and more global does not mean that cultural differences are disappearing or diminishing. As

Doug Ivestor, the former CEO of Coca Cola Corporation has pointed out “as economic barriers

come down, cultural barriers go up, presenting new challenges and opportunities in business”

(Javidan & House, 2001, p. 291).

1

CHAPTER 1 – INTRODUCTION

Substantial and high quality communication is an imperative for any form of knowledge transfer

(Javidan et al., 2005). In cross-border transfer effective and high-quality communication is even

more important, but also harder to achieve. Differences in culture are likely to be a main factor

causing problems in multinational corporations, since they lead to communication gaps, as

Pahlberg (1997) states. However, communication is more than just choosing the right words to

express something and interpreting the message carefully (Lengel & Daft, 1988). Effective

communication depends on the selection of an appropriate transmission channel, which can be

described as a matching process and the transmission channels should be selected to fit the nature

of the message (ibid).

1.2 Problem statement and research purpose

We believe that the impact of national cultural differences in cross-border transfer of

organizational knowledge is an important aspect to study, since it involves all international

companies and it is an aspect that all managers should consider carefully. Knowledge transfer is

always complex, but the complexity increases even further when a transnational aspect is added.

Furthermore, effective and good communication between parties is an important aspect for

knowledge transfer. It can, if managed properly, reduce both risks and costs since both money

and time can be saved when misinterpretations and misunderstandings are avoided. The choice of

appropriate transmission channels and the effective matching process are a central part of the

communication process. Cultural differences and their possible effects on communication

methods are therefore important aspects to bear in mind when transferring knowledge cross-

borders.

To comprehend the impact of national culture in cross-border transfer of organizational

knowledge, the purpose of this thesis is to develop an understanding of if/how national cultural

differences influence communication and transmission channels in cross-border transfer of

organizational knowledge. We will therefore investigate which cultural differences have an

impact on these and why. Our aim is to develop a theoretical model which combines two

existing, internationally well-acknowledged theories within the research area and the results of

our case study.

2

CHAPTER 1 – INTRODUCTION

More particularly, we will relate our study to Gupta & Govindarajan’s (2000) work of the four

forces that affect effective knowledge transfer and to nine cultural dimensions developed Project

GLOBE (Global Leadership and Organizational Behavior Effectiveness). These theories are

recently developed, contemporary, and are built on earlier well-reputable research; therefore we

chose to use them in our study. However, we will only focus on one of Gupta & Govindarajan’s

(2000) four forces: Existence and richness of transmission channels. Previously not much

research exists on the combination we aim to study. However, there are a lot of studies both in

cross-border knowledge and cultural differences as separate research areas, which gives a good

basis for our thesis. To develop our model we will conduct an in-depth case study on one

Swedish knowledge intensive international company. This will allow us to develop insights on

if/how national cultural differences influence communication and transmission channels in cross-

border transfer of organizational knowledge.

3

CHAPTER 2 – LITERATURE REVIEW

2 Literature review

In this chapter a selection of literature and existing research is presented. At the end of this

chapter, the theories reviewed are used to develop a conceptual framework, which then will be

used as a basis for the data collection.

2.1 Concept of knowledge

Davenport & Prusak (1998) define knowledge as a fluid mix of framed experience, important

values, contextual information, and expert insight that provides a framework for evaluating and

incorporating new experiences and information. Furthermore, according to Bhagat, Kedia,

Harveston & Triandis (2002) knowledge originates from unique experiences and organizational

learning. It is often embedded not only in written documents, but also in the routines, tasks,

processes, practices, norms and values of organizations. Just as information is derived from data,

knowledge is derived from information by contextualizing it and comparing it with an existing

standard. Knowledge can also be derived by examining the consequences a given body of

information may have for immediate and long-term organizational actions and decisions. (ibid)1

Since knowledge is embedded in individuals and in the organization, it is a product of human

reflection and experience (De Long & Fahey, 2000). Knowledge can thus be both explicit and

codified in formal rules or tacit and not easily articulated or explained. Since knowledge is

embodied in language, stories, concepts, rules and tools, it results in an increased capacity for

decision making and action to achieve a company’s goals. Knowledge is therefore an important

competitive tool for international companies and effective knowledge management determines

the companies’ performance. The purpose of knowledge management is hence to improve

organizational performance by explicitly designing and implementing tools, processes, systems,

1 Hereafter, when the reference is set outside the dot after a sentence, it means that the whole text between this reference and the former one comes from the same source. Furthermore, when the reference is set outside the dot after a sentence at the end of the paragraph and other references are not mentioned in that paragraph, it means that the whole text in that paragraph comes from that source.

4

CHAPTER 2 – LITERATURE REVIEW

structures and organizational cultures to improve the creation, sharing and use of knowledge that

is important for decision making. (ibid)

2.1.1 Importance of effective cross-border transfer of knowledge

A multinational corporation is a network of capital, product and knowledge transactions among

units located in different countries according to Gupta & Govindarajan (1991). Multinational

corporations are in general more effective and efficient in transferring knowledge through

internal mechanisms rather than through external mechanisms. Internal mechanisms are seen as

more reliable since the firm-specific knowledge is only internally recognized and not exposed to

the competing companies. In this way the company diminishes the risks of loosing the firm-

specific knowledge. However, the transfer of knowledge is, even within the company, a

complicated process. A company which desires to transfer knowledge effectively and efficiently

throughout the organization must emphasize its value, motivate the target unit involved, and give

the parties opportunities and tools to communicate. (ibid)

Gupta & Govindarajan (2000) suggest that effective cross-border transfer of organizational

knowledge is a function of following forces:

1. Value of the source unit’s knowledge stock: The greater the value of knowledge, the

greater is its attractiveness and relevance for other units.

2. Existence and richness of transmission channels: Clear communication channels, as well

as open and frequent communication among parties facilitate the knowledge flows across

the organization.

3. Motivational disposition of the target unit: Ignorance and underestimation of the value of

the knowledge, as well as ego-defense and power struggles might lead to resistance of

adopting the new knowledge from the source unit.

4. Absorptive capacity of the target unit: The target unit’s capability to assimilate and apply

the new knowledge, determines the success in adopting the incoming knowledge. The

greater the similarities are between the source and target unit, the higher is the absorptive

capacity of the target unit.

5

CHAPTER 2 – LITERATURE REVIEW

Effectiveness of cross-border transfer of organizational knowledge

1. Value of source unit’s knowledge

stock

2. Existence and richness of transmission channels

3. Motivational disposition of the target unit

4. Absorptive capacity of the target unit

Figure 2.1 Effectiveness of cross-border transfer of organizational knowledge Source: Authors’ own construction (2006) based on Gupta & Govindarajan (2000)

According to Javidan et al. (2005) barriers to knowledge transfer can appear in any or all of these

four areas mentioned above and illustrated in the Figure 2.1. The knowledge transfer from and to

geographically dispersed units is likely to be influenced by differences in national cultures (ibid).

Since knowledge transfer is about how individuals and groups behave, communicate and learn

from each other, it is likely that the knowledge transfer and communication reflect the

individuals’ national culture by the ways of thinking, practices, norms and values (ibid).

Furthermore, according to De Long & Fahey (2000) it is essential to acknowledge the importance

of cultural differences and to understand how the culture actually influences communication and

knowledge-related behaviors, as illustrated in Figure 2.2 below. This is an essential step before

deciding how to overcome problems related to cultural differences (ibid).

Communication and knowledge-related behavior

Knowledge creation, sharing and use

Cultural elements: • Practices • Norms • Values

Figure 2.2 Inter-relations between culture, communication and knowledge transfer Source: De Long & Fahey (2000), modified by the Authors (2006)

6

CHAPTER 2 – LITERATURE REVIEW

2.2 Communication and transmission channels

As Krone, Jablin & Putnam (1987) and other researchers have observed, the communication

process can be described as any basic two-person communication. This process can be defined as

an inter-relation between a sender and a receiver, where a message is first created and coded by

the sender, then transmitted through a communication channel and thereafter decoded and

interpreted by the receiver (ibid). While the message is coded and decoded barriers like cultural

differences and communication problems may influence the transmission of the message. The

communication process is illustrated in Figure 2.3.

Sender Receiver

Message is created and coded by the sender

Message is decoded and interpreted by the receiver

MESSAGE

Transmission channels

Barriers Barriers

Figure 2.3 Communication process Source: Authors’ own construction (2006)

Successful and effective communication requires adequate information-processing capacity,

which in its turn is a function of the intensity of communication, according to Gupta &

Govindarajan (1991). The higher the intensity of communication, the greater becomes the

company’s information-processing capacity. In the case of communication between

organizational units the Intensity of communication consists of four different dimensions. The

first three dimensions are, according to Jablin (1979) and Tushman (1977): Frequency (i.e. how

often the communication occurs), Informality (i.e. how formal/informal the communication is)

and Openness (i.e. how easy the communication is). The fourth dimension is, according to Gupta

& Govindarajan (1991): Density of communication (i.e. the number of people involved in the

communication).

7

CHAPTER 2 – LITERATURE REVIEW

Transmission channels can be both formal and informal (Gupta & Govindarajan, 2000). They can

be divided into formal integrative mechanisms and informal corporate socialization mechanisms.

Formal integrative mechanisms are for example liaisons positions, task forces and permanent

committees. The greater the subsidiary’s embeddedness in the global company network through

formal integrative mechanisms, the greater is the density of the communication between the units,

which in turn contributes positively to media richness. Informal corporate socialization

mechanisms, on the other hand, are defined as organizational mechanisms that build interpersonal

familiarity, personal solidarity and convergence in the mentality among personnel from different

subsidiaries. The greater the participation in informal corporate socialization mechanisms, the

richer the transmission channels become and the more open the communication turns out to be.

(ibid)

According to Lengel & Daft (1988) communication is more than just choosing the right words to

express something and interpreting the message carefully. Effective communication depends on

the selection of an appropriate transmission channel that has the best capacity to engage both the

sender and the receiver for mutual understanding of the message. Effective communication is a

matching process (see Figure 2.4) and the richness of transmission channels should therefore be

selected to fit the nature of the message. Communication failures occur when the matching

process is working poorly. (ibid)

The matching process for effective communication is successful when rich transmission channels

are used for complex messages (Lengel & Daft, 1988). Complex messages are influenced by

personal feelings and subjective beliefs and a common frame of reference does not exist between

the sender and the receiver. Complex messages require therefore rich transmission channels that

allow rich exchange of information and knowledge, as well as more personal, direct and

unfiltered contact between the receiver and the sender. Furthermore, communication is successful

when lean transmission channels are used for routine messages. This type of messages are more

impersonal, detached and convey hard data like conclusions, statistics and plain directives. A

common frame of reference does, in this case, already exist between the sender and the receiver

and the routine communication does not require rich exchange of information and knowledge.

(ibid)

8

CHAPTER 2 – LITERATURE REVIEW

RIC

HN

ESS

OF

TRA

NSM

ISSI

ON

C

HA

NN

ELS

Physical presence

Face-to-face

Interactive media Telephone, electronic media

Personal static media

Memos, letters, tailored computer reports

Impersonal static media

Flyers, bulletins, generalized computer reports

High

Low

Communication failure

Overly rich

communication causes confusion

Effective communication

Rich communication

for complex knowledge

Communication failure

Too little information and sensitivity leads to mistrust and lack

of commitment

Effective communication

Routine

communication for routine knowledge

Routine ComplexKNOWLEDGE

Figure 2.4 Matching process for effective communication Source: Lengel & Daft (1988), modified by the Authors (2006)

Javidan et al. (2005) point out that substantial and high quality communication between the

parties is an imperative for any form of knowledge transfer. In cross-border transfer effective and

high-quality communication is even more important, but also harder to achieve. Differences in

culture are likely to be a main factor causing friction between units in multinational corporations,

since they lead to communication gaps according to Pahlberg (1997). One of the most

fundamental barriers to overcome in these cases is language, both spoken and unspoken.

Language barriers may especially cause communication barriers when the contact is not face-to-

face. However, face-to-face communication is not possible in all situations, since it is relatively

time and capital consuming (Javidan et al., 2005).

2.3 Concept of culture

The concept of culture is complex and definitions of culture vary. The anthropologist Edward

Tylor defined culture in the late 1800s as “that complex whole which includes knowledge, belief,

art, morals, law, custom, and other capabilities acquired by a man as a member of a society”

(Hill, 2005, p. 91). More recently, Hofstede has defined culture as “the collective programming

of the mind which distinguishes the members of one human group or category of people from

9

CHAPTER 2 – LITERATURE REVIEW

another” (Hofstede, 1984, p. 21). Furthermore, De Long & Fahey (2000) describe culture more

generally as a system of values, norms, and practices that are shared among a group of people

and that, when taken together, constitute a design for living. Values are ideas about what a group

believes to be good, right and desirable. This is the deepest level of culture since values are often

embedded in tacit preferences as well as they are difficult to articulate and change. Norms are

derived from values and can be described as social rules and guidelines that prescribe appropriate

behavior in particular situations. Therefore, they are more observable as well as easier to identify

and change. Practices are the most visible symbols and manifestations of culture. They are a way

of understanding any widely understood set of repetitive behaviors and they also include repeated

types of interaction that have identifiable roles and social roles. In other words, values, norms and

practices are fundamentally interrelated, since values are manifested in norms which in turn

shape specific practices. (ibid)

2.3.1 Project GLOBE and cultural dimensions

House, Javidan & Dorfman (2001) describe Project GLOBE2 as a multi-phase, multi-method

research program designed to understand the relationship between culture and organizations. It

was set up to investigate the impact of national and organizational culture on organizational

practices and leadership. Approximately 160 social scientists and management scholars from 62

cultures representing all major regions throughout the world are engaged in this long-term

programmatic series of cross-cultural leadership studies, which is still going on. (ibid)

Project GLOBE defines culture as “shared motives, values, beliefs, identities, and interpretations

or meanings of significant events that result from common experiences of members of collectives

and are transmitted across age generations” (House et al., 2001, pp. 494-495). According to

Javidan & House (2002) a useful way of exploring cultural similarities and differences is to study

cultural clusters. By dividing countries into clusters Project GLOBE has been able to identify the

extent, nature, and dynamics of cultural similarities and differences around the world. (See

Appendix I – The GLOBE countries in 10 cultural clusters for an overview of these clusters.) A

group of countries that shares many similarities can be defined as a cultural cluster: the countries 2 More information is available on GLOBE’s public website: http://www.thunderbird.edu/wwwfiles/ms/globe

10

CHAPTER 2 – LITERATURE REVIEW

in a cluster are more similar to each other than to any other country outside the cluster. As

Javidan & House point out, the understanding of cultural similarities and dissimilarities will help

managers be aware of the process of cultural development. Practical studies have also shown that

the greater the cultural difference between two clusters the greater is the differences in both

organizational and knowledge transfer practices. (ibid)

Moreover, Project GLOBE has developed a scale of scores to quantify cultural differences that

are based on cross-cultural theory. These scores measure both cultural practices (as they are) and

cultural values (as they should be) within the different clusters with respect to nine societal

cultural dimensions also developed by Project GLOBE (House et al., 2001). As Javidan et al.

(2005) point out the double nature of these nine dimensions is of particular relevance. Cultural

practices describe the current perceptions of each culture, while cultural values tap the feelings

about cultural aspirations and the direction the individuals want their culture to develop in the

future (ibid).

The nine societal cultural dimensions developed by Project GLOBE are defined as follows

(House et al., 2001). The data for comparisons below between Latin Europe, Anglo and Nordic

Europe clusters3 originates from House et al. (2004). (See Appendix II – The GLOBE societal

cultural scores for Nordic Europe, Latin Europe and Anglo clusters for more detailed

information about the scores used for these cluster comparisons.)

1. Uncertainty Avoidance refers to the extent to which members of an organization or

society strive to avoid uncertainty by relying on established norms, rituals and practices.

E.g. most people lead highly structured lives with few unexpected events in a lower

degree both in Latin Europe and Anglo clusters than in the Nordic Europe cluster.

2. Power Distance is the degree to which members of an organization or a society expect

and agree that power should be concentrated and unequally shared. E.g. the followers are

3 Only data for these clusters are presented here, since they were the most representative selection of clusters for our case study. For more information about the other seven clusters, see House et al. (2004).

11

CHAPTER 2 – LITERATURE REVIEW

expected to obey their leaders without question in a higher degree both in Latin Europe

and Anglo clusters than in the Nordic Europe cluster.

3. Institutional Collectivism reflects the degree to which individuals are encouraged by

institutions to be integrated into broader entities and collective action. E.g. leaders

encourage group loyalty even if individual goals suffer in a lower degree both in Latin

Europe and Anglo clusters than in the Nordic Europe cluster.

4. In-Group Collectivism reflects the degree to which individuals take pride in and feel

loyalty towards their families, organizations and employers. E.g. individuals feel great

loyalty toward their organization in a higher degree both in Latin Europe and Anglo

clusters than in the Nordic Europe cluster.

5. Gender Egalitarianism refers to the extent to which organization or society minimizes

gender role differences and gender discrimination. E.g. groups try to minimize gender

inequality in a lower degree both in Latin Europe and Anglo clusters than in the Nordic

Europe cluster.

6. Assertiveness is the degree to which individuals in organizations or societies are self-

confident, confrontational and aggressive in social relationships. E.g. individuals are

dominant in their relations with each other in a higher degree both in Latin Europe and

Anglo clusters than in the Nordic Europe cluster.

7. Future Orientation reflects the degree to which individuals in organizations or societies

engage in future-orientated behaviors such as planning, investing in the future and

delaying gratification. E.g. individuals live for the present rather than for the future in a

lower degree both in Latin Europe and Anglo clusters than in the Nordic Europe cluster.

8. Performance Orientation reflects the degree to which an organization or society

encourages and rewards group members for performance improvement and excellence.

12

CHAPTER 2 – LITERATURE REVIEW

E.g. individuals are encouraged to strive for continuously improved performance in a

higher degree both in Latin Europe and Anglo clusters than in the Nordic Europe cluster.

9. Human Orientation reflects the degree to which individuals in organizations or societies

encourage and reward individuals for being fair, altruistic, friendly, generous, caring and

kind to others. E.g. individuals are tolerant of mistakes in a lower degree in the Latin

Europe cluster than in the Nordic Europe cluster but in a higher degree in the Anglo

cluster than in the Nordic Europe cluster.

House, Hanges, Javidan, Dorfman & Gupta (2004) state that the first six societal cultural

dimensions used by Project GLOBE have their origins in the dimensions of culture identified by

Hofstede (1984). The first three dimensions reflect Hofstede’s dimensions Uncertainty

Avoidance, Power Distance, and Individualism. However, Hofstede’s original dimension

Collectivism was divided in two within the Project GLOBE: Institutional Collectivism and In-

Group Collectivism. This distinction was made to separate societal emphasis from individual

emphasis. Furthermore, Hofstede’s Masculinity dimension was developed in two separate

dimensions: Gender Egalitarianism and Assertiveness. This was done to broaden the conception

of masculinity. Future Orientation on the other hand was derived from Kluckhohn &

Strodtbeck’s (1961) dimension which focuses on the temporal mode of a society. This dimension

has furthermore some similarities to the dimension Long-Term Orientation developed by

Hofstede later on. Performance Orientation in its turn was derived from McClelland’s (1985)

work on Need for Achievement, which was assumed to be a non-conscious motive and was

measured by the use of projective tests. However, it was measured in Project GLOBE by the use

of closed-end questionnaire items and as a variable of economic performance. Finally, Human

Orientation was a mixture of three different conceptualizations. The first one of these was

Kluckhohn & Strodtbeck’s (1961) dimension Human Nature as Good versus Human Nature as

Bad. The second one was McClelland’s (1985) conceptualization of the Affiliative Motive (i.e.

humans’ need to be accepted and liked) and the third one was Putnam’s (1993) work on the Civic

Society (i.e. humans in modern societies care less for each other).

13

CHAPTER 2 – LITERATURE REVIEW

2.4 Conceptual framework

We have brought together Gupta & Govindarajan’s (2000) model of effective cross-border

knowledge transfer and the nine societal cultural dimensions developed by GLOBE. However,

we will only focus on one of Gupta & Govindarajan’s (2000) four forces: Existence and richness

of transmission channels. We wanted to focus on this factor since effective communication is a

prerequisite for successful cross-border knowledge transfer and transmission channels are an

important part of the communication process. By combining these two models we will be able to

investigate which of the nine cultural dimensions developed by GLOBE have an impact on

communication and transmission channels in cross-border transfer of organizational knowledge

and find out why these cultural differences may or may not have an impact. Figure 2.5

summarizes our conceptual framework.

Communication and transmission channels

9. Human Orientation

1. Uncertainty Avoidance

4. In-Group Collectivism

6. Assertiveness

2. Power Distance

3. Institutional Collectivism

5. Gender Egalitarianism

7. Future Orientation

8. Performance Orientation

Figure 2.5 Conceptual framework Source: Authors’ own construction (2006)

14

CHAPTER 3 – METHODOLOGY

3 Methodology

In this part the methodology used for conducting this research will be presented. First the

research purpose will be discussed, followed by what kind of research approach is used. After

this the research strategy and data collection method is being discussed, as well as sample

selection and analysis of data. Finally, the quality standards and operationalization will be

discussed.

3.1 Research purpose and approach

This thesis is descriptive since the purpose is to develop an understanding of if/how national

cultural differences influence communication and transmission channels in cross-border transfer

of organizational knowledge. The descriptive research purpose suits well for our study since the

problem is well structured and we aim to develop an understanding of the problem area by using

an if/how-problem formulation (Winter, 1992). Furthermore, we will investigate which aspects of

the problem area are relevant and we will describe these more thoroughly (ibid). The conclusions

of our study will then be derived from the description of the examined aspects and variables

(ibid).

The qualitative approach is appropriate for our thesis, since a deeper and broader understanding

about the problem area is desired (Jacobsen, 2002). The qualitative approach is less formal and

based on unsystematic and unstructured observations (Holme & Solvang, 1997). Furthermore, it

is more flexible than a quantitative one (ibid). Since the aim of this thesis is to study knowledge

and culture which are highly based on the company’s and the interview respondents’ attitudes

and perceptions, it is easier to demonstrate the data in qualitative words instead of quantitative

statistics. Therefore the flexible and informal qualitative approach suits well our study.

Furthermore, our thesis follows a deductive approach, i.e. the existing theories within the

research area have been studied and the research problem and research questions have then been

drawn from these recognized theories. Through an empirical research we will build a deeper and

broader understanding of our conceptual framework.

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3.2 Research strategy, data collection and analysis of data

We have chosen to conduct an in-depth case study as research strategy. As Eriksson &

Wiedersheim-Paul (2001) point out, a case study involves investigating one entity but many

variables in order to get an in-depth situational picture. Moreover, the case study method is useful

when the purpose is to study a certain process and to identify the factors which influence this

particular process (Bell, 2000). The case study in this thesis is conducted on a knowledge

intensive Swedish biotechnology/medical device company, Q-Med AB4, hereafter only referred

to as Q-Med. In order to reach our purpose and our aim to develop a model, our case study will

in-depth investigate if/how national culture influence communication and transmission channels

in cross-border transfer of organizational knowledge within this knowledge intensive company.

Thus, we will study which cultural dimensions have an impact on Q-Med’s cross-border

knowledge transfer and why.

In this thesis both secondary and primary data have been collected. The secondary data for our

case study has been collected through different documents. We have studied Q-Med’s website

and its financial reports to get more information about the company and its activities as well as to

get an overview of the company’s knowledge intensity and its grade of internationalization.

Furthermore, the primary data for our case study has been collected through a personal interview.

The fact that the information we searched and needed for our study regarded mostly internal

organizational knowledge and that it was not available on the website or in the financial reports,

influenced our choice of conducting a personal interview. According to Davidson & Patel (2003),

qualitative verbal analysis is often used to gain better understanding of the research problem,

which also suited well for our purpose. We also wanted to pose complex questions and explain

possible misunderstandings during the interview. Moreover, we considered it important to let our

interview respondents freely describe the research area from their point of view. Considerable

efforts were made, in cooperation with Q-Med and Director Human Resources Thomas

Holmberg, to find suitable and knowledgeable respondents, who were capable to answer our

questions.

4 More information is available on Q-Med’s website: http://www.q-med.com

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CHAPTER 3 – METHODOLOGY

Our one-hour in-depth interview was conducted with two respondents from Q-Med’s

headquarters on the 14th of December 2006 at the head office in Uppsala, Sweden. We had the

opportunity to interview Manager Internal Communications Annelie Lundell and Corporate HR

Manager Christina Toth. Annelie Lundell is responsible for all internal communication within the

entire Q-Med Group and for a new project that aims to improve the information sharing and

communication within the company during the year 2006. The internal communication has

become more and more important for Q-Med while the company rapidly has been growing. For

this reason Annelie Lundell’s post was established only six months ago, although she has been

working at Q-Med since 2002. Christina Toth, on the other hand, is responsible for all

international assignments at Q-Med. This includes responsibility for Q-Med’s expatriates and

therefore even contacts and communication with the subsidiaries and public authorities abroad.

She has been working at Q-Med since 2000. (Personal interview with Annelie Lundell and

Christina Toth)

Moreover, within-case analysis is used in this thesis, since only one specific case study has been

conducted. The data collected from our case study was then compared to the relevant conceptual

framework in order to find particular similarities and dissimilarities, also described as theoretical

generalization by Yin (2003).

3.3 Sample selection

We decided to study a rapidly growing, profitable Swedish biotechnology/medical device

company, Q-Med. The biotechnology/medical device industry in Sweden is well-known for its

international knowledge intensive features and Q-Med suits therefore well for our case study.

Furthermore, Q-Med was chosen as a subject for our case study since knowledge and competence

management are important for the company and Q-Med promotes continuous development,

growth and understanding. Q-Med’s competence development is not only an instrument for

attaining the short and long term goals that have been set in the business plan, but also an

instrument for ensuring that the co-workers take in the new knowledge that is necessary for the

continuous development of the company. (www.q-med.com)

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CHAPTER 3 – METHODOLOGY

Q-Med was started in 1987 by Bengt Ågerup with the view to commercialize the research he had

carried out. Since the end of 1995 the company has run its operations in its present form (www.q-

med.com). The company develops, produces, markets and sells advanced medical products (ibid).

All products in Q-Med's portfolio5 are based on the company’s patented technology NASHA™

(Non-Animal Stabilized Hyaluronic Acid6) (ibid). The products are sold internationally through

the company’s wholly owned subsidiaries, which are situated in Spain (31 employees), Germany

(24), France (23), Italy (22), United Kingdom (19), USA (18), Australia (11), Canada (8), Brazil

(8) and Mexico (7) (Q-Med Årsredovisning 2005). However, we have chosen to study only the

subsidiaries in the Latin Europe and Anglo clusters, since the majority of the subsidiaries can be

put in these clusters and are therefore the most representative selection for our case study.

We found it interesting to study how national culture influences the company’s communication

process and transmission channels, since Q-Med has co-workers with different nationalities in

over 10 countries and interaction between different parts of the organization is essential for the

knowledge transfer (www.q-med.com). Since Q-Med promotes the importance of knowledge

management and sells its advanced medical products internationally via several culturally

dissimilar subsidiaries abroad, we found it interesting to study the company’s product knowledge

transfer. An effective product knowledge transfer is a fundamental part of successful sales and

therefore also an essential basis of Q-Med’s profitability. Our decision to concentrate on product

knowledge transfer was moreover supported by Q-Med’s Director Human Resources Thomas

Holmberg.

3.4 Quality standards

It is difficult to ensure reliability and validity when conducting qualitative research (Davidson &

Patel, 2003). Thus, it is always an important task to verify the reliability of a source, no matter

5 Q-Med’s product portfolio: RESTYLANE, for filling out lips and facial wrinkles and for facial contouring; DUROLANE, for treatment of the osteoarthritis of hip and knee joints; DEFLUX, for treatment of children’s vesicoureteral reflux (a malformation of the urinary bladder) and ZUIDEX, for treatment of women’s stress urinary incontinence. (www.q-med.com) 6 Hyaluronic acid is a natural sugar which is found in all organs of the body and it looks the same in all living organisms. This kind of acid binds water and gives volume to the skin, acts as a lubricant for joints and other movable parts of the body as well as protects cells. (www.q-med.com)

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CHAPTER 3 – METHODOLOGY

what the information is going to be used for. During the working process of our case study we

have faced two primary problems which we had to deal with. The first problem relates to the fact

that we have used secondary data. Such data has normally passed through several filters; i.e.

persons may have interpreted the information and put their own perceptions on it (Wiklund,

1999). The second problem relates to the primary data used in this thesis. The persons who have

been interviewed may have been governed by the company’s policies and confidentiality.

Therefore the information they have given us may have been biased, ambiguous or even

incorrect. This does not necessarily have to be based on the respondents’ involuntariness; rather it

can be a result of the fact that the respondents do not remember the exact course of the event of

the topic for the interview. However, we did not experience this kind of problems during the

interview and the respondents were giving complete and detailed answers to all of our questions.

The respondents behaved very professionally and they also seemed comfortable and eased with

the interview situation. Nevertheless, we are conscious about the fact that subjectivity might have

affected our respondents’ answers, but this problem cannot be completely excluded since

subjectivity always have some influence on individuals.

An advantage of collecting primary data through a personal interview is that it is possible to bring

the questions in line with our actual problem statement. However, problems can occur due to

“interviewer effects” which may influence the respondents and which are caused by the physical

presence of the interviewer. If the interaction between the interviewer and the respondents does

not work there is a risk that the quality of the answers decreases (Jacobsen, 2002). In order to

ensure the reliability of our research and to facilitate the interaction between us and the

respondents, Swedish was used as the interview language. We wanted to avoid language barriers

and to let the respondents freely and thoroughly answer to all of our questions. However, it

should be noted that some unintentional translation interpretations may have occurred when

doing translation but we have tried to handle all translations very carefully. During the evaluation

and handling of the data collected, we have also tried to be as objective as possible to ensure the

reliability of our thesis. However, it should be taken into consideration that the same interview

guide and the same respondents still might not lead to the exact same result as in this thesis. The

subjectivity has always some influence in an interview and a research. We have been conscious

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CHAPTER 3 – METHODOLOGY

about this problem and we have strived after not to let our own subjective thoughts and feelings

influence the evaluation and the handling the data collected.

According to Holme & Solvang (1991) problems may further occur during the operationalization,

when the conceptual framework is turned into appropriate interview questions. Especially

problematic is the aspect of how these questions should be formulated so that the respondents can

comprehend them and give concrete answers to them. To ensure the validity of this research, our

interview guide was formulated from the emerged conceptual framework; this in order to answer

to our research purpose. The interview guide was then read and commented by other persons to

test the comprehension of the questions and to improve the formulation of them. (See Appendix

III for the English version of the interview guide and Appendix IV for the Swedish one.) A

preview of the Swedish interview guide was sent to the respondents by e-mail few days before

the actual interview. This in order to let the respondents get an insight and a more complete

picture of what the interview was to be about, since the subject of our research is complex and the

time for the interview was limited. The interview was then conducted face-to-face in order to

gain better understanding of the situation and to be able to explain the possible

misunderstandings of the questions. The aim of the personal interview was to obtain

comprehensive answers from the respondents’ side and to let the respondents describe the entire

research area from their point of view. In order to ensure the validity the interview was recorded

with permission by the respondents. Furthermore, both researchers made their own notes, which

then later on were conducted together. After the text was written it was sent back to our interview

respondents by e-mail so that they could read it through and correct possible misunderstandings.

Finally, we are aware of the fact that our single case study contributes with low transferability,

since the results of this thesis are specific for the company studied. Therefore our study only adds

insights, regarding the influence of cultural differences on communication and transmission

channels for other multinational knowledge transferring companies. We only had the opportunity

to conduct one one-hour in-depth interview with two respondents, since the time and the

company’s resources were limited for our study. However, we are conscious about the fact that

the respondents’ answers might have been less biased if they had been interviewed separately, but

we did not have the possibility to do this. Furthermore, we only had the possibility to study the

headquarters’ point of view in our case study, since the research period was limited and during

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CHAPTER 3 – METHODOLOGY

this time no representatives from Q-Med’s subsidiaries were available for a personal in-depth

interview.

3.5 Operationalization of the theory

The interview questions were formulated in a relatively general way to trigger a deeper

discussion around the subject in question. In this way we could, during the interview, focus on

the parts which turned out to be the most interesting for our research. The definition “product

information” was used in the questions instead of the definition “product knowledge” since the

former definition is used by the company to equivalent product knowledge. Even though the first

definition includes both information and knowledge, the focus in our interview was laid on

product knowledge and this was clearly expressed to our respondents. Furthermore, the cultural

clusters developed by Project GLOBE are referred to as “cultures” in the English version of the

interview guide and as “länder” (i.e. countries) in the Swedish one in order to make the

questions simpler and easier to comprehend.

To begin with, we formulated some questions to get some general information about the

respondents’ background and their position in the company (Questions 1.1-1.4). Furthermore, we

formulated some more questions around the subjects of communication and transmission

channels (Questions 2.1-2.8), since this was of the central interest for our study. In order to

measure if/how cultural differences influence communication and transmission channels in cross-

border transfer of organizational knowledge, it is important to first investigate what type of

communication exists and which transmission channels are used within the company. Questions

2.1-2.2 are therefore intended to be more general about both communication and richness of

transmission channels; for example how the headquarters communicate with the subsidiaries and

why. With Questions 2.3-2.8 we wanted to measure the company’s communication intensity:

frequency, formality/informality as well as the company’s socializations mechanisms, openness

and density of communication; for example how often and with how many persons the

headquarters have contact with in the subsidiaries.

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CHAPTER 3 – METHODOLOGY

Our aim with Questions 3.1-3.7 was to investigate which cultural dimensions have an impact on

the company’s cross-border transfer of product knowledge and why. The nine cultural

dimensions developed by Project GLOBE were used as a base for discussion, but as we did not

want to exclude other possible cultural factors that might have an impact, we formulated the more

general Questions 3.1 and 3.7 about what kind of cultural differences the headquarters had

experienced in general. With Questions 3.2-3.6, on the other hand, we wanted to go in-depth and

investigate the influence of the existing cultural differences between the Latin Europe, Anglo and

Nordic Europe clusters. For example, if the headquarters recognize some of the nine cultural

differences developed by Project GLOBE and how these differences have influenced the

transmission channels used.

The definitions of the nine cultural Project GLOBE dimensions that are used in our interview

guide come from House et al. (2001) and the data for comparisons between Latin Europe, Anglo

and Nordic Europe clusters come from House et al. (2004). (See Appendix II – The GLOBE

societal cultural scores for Nordic Europe, Latin Europe and Anglo clusters.) The scores and

comparisons used for Questions 3.2-3.6 are developed and used by Project GLOBE. Since all

scores already are measured by Project GLOBE and commonly acknowledged, there was no need

for us to re-measure the scores. Since it only was interesting to use as a basis for our study the

scores that showed how cultural practices in fact are and not how they should be, i.e. cultural

values, we have only used the scores for cultural practices (referred to as “as is” in the Appendix

II) for the comparisons between Nordic Europe, Latin Europe and Anglo clusters.

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CHAPTER 4 – CASE STUDY OF Q-MED AB

4 Case study of Q-Med AB

In this chapter the empirical data collected during the personal interview with our interview

respondents from Q-Med’s headquarters will be presented.

4.1 Communication and transmission channels7

Q-Med uses different transmission channels for its communication between the headquarters and

the subsidiaries regarding product knowledge. These transmission channels are used for different

purposes and the headquarters describe them as follows:

• Electronic General Management System, hereafter referred to as GMS, that only the

higher level of management and administrative personnel have access to.

• Direct Materials and Brochures that are distributed within the company by graphic

designers.

• Personal Contacts like congresses, seminars, meetings and training.

The GMS transmission channel is primarily used for fast and easy information sharing about the

company’s policies and goals, as well as for routine knowledge about Q-Med’s products. GMS is

a tool that management and administrative personnel apply in their daily work. However, the

access may vary depending on the hierarchal structure in the subsidiaries. Direct Materials and

Brochures are mostly used for product knowledge sharing and financial reports and they are used

for more basic knowledge shearing and learning. Personal Contacts like congresses, seminars,

meetings and training are mostly used for more complex and advanced knowledge sharing and

are commonly used within management and during training periods. The transmission channels

mentioned above are equally used towards subsidiaries and no other variation than language used

is remarked.

7 All data in Chapter 4.2 comes from the in-depth interview with Annelie Lundell and Christina Toth.

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CHAPTER 4 – CASE STUDY OF Q-MED AB

The main company language at Q-Med is English, but even other languages are used if the

situation requires that or if it is otherwise appropriate. Beside English even French, German,

Italian, Portuguese, and Spanish are used in communication within the Q-Med Group. Exceptions

are especially made when subsidiary representatives are visiting the headquarters; then their

mother tongue is used if possible. However, GMS is only available in English, but in a near

future it will be possible for the subsidiaries to link sites to GMS, which then can be used even

with other languages. Moreover, the direct materials and brochures are translated in 25 different

languages which facilitate the use of these for the co-workers with different language

backgrounds in different countries.

Frequency of communication: The regularity of the contacts between Q-Med’s headquarters and

its subsidiaries is quite high. The subsidiary managers have almost daily contact with the

headquarters and they are often on meetings, seminars and trainings at the headquarters.

Regarding the administrative personnel the contact is not as regular as the managers but still quite

frequent. The sales personnel, on the other hand, from the subsidiaries has almost no contact with

the headquarters, except for the introductive training period, that always takes place in the

beginning of their employment at the headquarters in Uppsala, Sweden.

Informality of communication: The communication regarding product knowledge is formal in a

quite large extent, since there are many legal and other formal restrictions which regulate what

kind of knowledge has to be shared to ensure the safety and quality of the products. Therefore,

the direct documents and brochures, as well as the product knowledge in GMS are held quite

formal. However, even informal communication is used to ensure that the complex product

knowledge is understood and interpreted in a proper way and to enhance deeper understanding

for these advanced and highly regulated products. Informal communication occurs also when

having other types of contacts between headquarters and the subsidiaries, especially more

personal ones. Furthermore, Q-Med encourages open conversation and discussions between their

coworkers, different socialization forms and familiar atmosphere within the company. The

subsidiary general managers are often at the headquarters for different reasons and socialize

therefore regularly with their colleagues from the headquarters. One yearly conference for

business controllers and one yearly conference for general managers are held at the headquarters.

The introductive training course about product sales and product knowledge for new sales

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CHAPTER 4 – CASE STUDY OF Q-MED AB

employees from the subsidiaries abroad is also held at the headquarters and includes different

forms of socialization with the colleagues from the headquarters and from other subsidiaries.

Openness of communication: In general, the headquarters at Q-Med find the communication

between them and the subsidiaries to be uncomplicated, fast and open. The familiar and relaxed

company culture facilitates the communication. However, the headquarters are unsure if the

subsidiaries experience the communication in the same way. It is probably not as easy for the

personnel from the subsidiaries to pick up the phone and contact the headquarters, as it is for the

headquarters to contact the subsidiaries. The headquarters are although optimistic that the

subsidiaries experience the communication in the same positive way as no major problems in

communication have occurred.

Density of communication: All general managers are involved in the communication both at the

headquarters as well as in the subsidiaries. Most of the administrative personnel, controllers and

personnel at logistics are also involved in the communication. Only the sales personnel are not

involved in the direct communication between headquarters and subsidiaries, which makes it

harder for the headquarters to recognize their needs of product knowledge.

Communication satisfaction: The communication is overall working well between the

headquarters and the subsidiaries and the existing transmission channels are used effectively.

However, the headquarters feel that the communication earlier has been too concentrated on

management levels. The contact with other levels of the subsidiaries abroad has therefore been

nearly non-existing. Q-Med has started a new program for improvement of information sharing

and communication during the year 2006. The headquarters hope to get better overall contact

with all levels of the organization within a near future. Earlier it has been up to the subsidiary

managers to share and forward the knowledge they have received from the headquarters to their

employees. This might have resulted in that the product knowledge has not always reached out to

all levels of the subsidiaries. As some knowledge may have remained only at the management

level in the past, Q-Med plans to implement a global internal electronic network in English,

which all personnel will have access to.

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CHAPTER 4 – CASE STUDY OF Q-MED AB

4.2 Cultural differences – Nordic European vs. Latin European and Anglo cultures8

Q-Med recognizes that some cultural differences exist between the headquarters and the

subsidiaries. However, most of the problems are derived from language differences and

variations in the use of tones. For example there exist large language problems in all subsidiary

levels in the Latin European cultures. However, it is easier to socialize with them and correct the

possible misunderstandings and misinterpretations, since the colleagues from the Latin European

subsidiaries are more apt to tell if there is something that they do not understand. The

misunderstandings and misinterpretations due to language problems have caused some

communication failures according to the headquarters; especially within e-mail correspondence

but sometimes even in personal contacts. The misunderstandings and misinterpretations are time-

consuming and therefore the headquarters seek to avoid them.

There do not exist that much language problems with subsidiaries in the Anglo cultures according

to the headquarters. However, it is harder to get a close contact with personnel from these

countries, since they are more disciplinary and dominant in their relationships. Q-Med’s

headquarters have especially noticed that the American leadership differs from the Swedish one.

In the USA it is not common to reach consensus and since the Swedes are more used to discuss

before the decisions are made these differences have caused problems in the communication. A

fact that has diminished the cultural gaps between the headquarters and the Anglo subsidiaries is

that Q-Med has placed out some Swedish general managers there, more precisely in United

Kingdom and Australia.

Since the headquarters enhance the cultural diversity within the company, Q-Med’s subsidiaries

have had the possibility to retain their national cultural features and their hierarchic structure,

even if these differ from the headquarters’. This fact has had both positive and negative

influences on communication, but the headquarters consider the positive ones more important.

According to the headquarters the diversity contributes to valuable interaction between research,

business and organizational culture within the company. On the other hand, the headquarters

8 All data in Chapter 4.3 comes from the in-depth interview with Annelie Lundell and Christina Toth.

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CHAPTER 4 – CASE STUDY OF Q-MED AB

wish at the same time to implement Q-Med’s overall company culture in the subsidiaries in order

to facilitate the communication. This Q-Med’s company culture, at least at the headquarters, is

characterized by familiarity, relaxed atmosphere, respect and openness.

4.2.1 Nine cultural dimensions from Project GLOBE

Q-Med’s headquarters feel that some of the nine cultural differences from Project GLOBE have a

larger influence than others on its communication with the subsidiaries in Latin European and

Anglo cultures and therefore also on the transmission channels used for communication. As

important cultural differences that influence both of these aspects the headquarters consider:

Power Distance, Institutional Collectivism, In-Group Collectivism, Assertiveness and

Performance Orientation. Hence, the headquarters consider that Uncertainty Avoidance, Gender

Egalitarianism, Future Orientation and Human Orientation have no impact on these, since no

communication problems related to these are recognized by the headquarters.

Power Distance is seen as a significant aspect for Q-Med’s communication and transmission

channels used since the more hierarchal structure in the Latin European and Anglo subsidiaries

differs from the Nordic European headquarters lateral structure and the leaders have more

authority in the Latin European and Anglo subsidiaries. This influences the communication

between the Q-Med’s headquarters and its subsidiaries in the way that it is often up to the

subsidiary managers to share and forward the knowledge they get from the headquarters to their

employees.

Institutional Collectivism is an important factor for Q-Med’s communication and transmission

channels used since the Nordic European headquarters encourage team-work and group loyalty

more than the Latin European and Anglo subsidiaries. The communication at the headquarters is

therefore more time consuming since the personnel from the headquarters is used to reach

consensus by discussing, which is not often the case in the subsidiaries.

In-Group Collectivism is considered important for the communication and transmission channels

used, since different socialization mechanisms are more commonly used in the Latin European

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CHAPTER 4 – CASE STUDY OF Q-MED AB

and Anglo subsidiaries than at the Nordic European headquarters. For example the personnel

from these subsidiaries socialize with their colleagues more often in their spare time. In this way

they have a greater solidarity and cohesion towards each other and their organization. They are

also more apt to appreciate the personal contacts and communication.

Assertiveness is a significant factor and influences Q-Med’s communication and transmission

channels used, since the personnel in the Latin European and Anglo subsidiaries are more

dominant and confrontational in their relations than the personnel at the Nordic European

headquarters. For example in the Latin European and Anglo subsidiaries the individuals do not

hesitate to say what they think and they are more straightforward than the individuals at the

Nordic European headquarters. On the other hand, at the Nordic European headquarters the

individuals are not too self-confident and they are more reserved. These cultural differences have

caused misunderstandings and misinterpretations, for example problems with personal contacts

Performance Orientation is seen as an important aspect that influences Q-Med’s communication

and transmission channels used. For example in the Latin European and Anglo subsidiaries the

individual is praised more when performing well, which in turn encourages the individual to

perform even better. At the Nordic European headquarters, on the other hand, the individuals

have difficulties both in giving and receiving encouragements. These cultural differences have

caused problems when communicating within Q-Med, since the individuals are used to different

kinds of appraisal at work.

Overall Q-Med’s Nordic European headquarters are aware of that several cultural differences

exist between them and the Latin European and Anglo subsidiaries and the headquarters do not

ignore these differences. Some measures have been used to diminish and to be aware of cultural

barriers. For example two cross-cultural seminars have been organized at the headquarters in

Uppsala, Sweden, regarding the American and the Chinese cultures. This has been a result of past

communication problems and misunderstandings according to the headquarters.

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CHAPTER 5 – CASE ANALYSIS

5 Case analysis

In this chapter the case analysis is presented. The data collected is here analyzed and compared

to our conceptual framework.

5.1 Communication and transmission channels

Javidan et al. (2005) point out that substantial and high quality communication between the

parties is an imperative for any form of knowledge transfer. However, when the international

aspect is added the effective communication becomes even harder to achieve (ibid). According to

Pahlberg (1997) communication gaps and barriers are often caused by differences in national

culture between different units in Multinational Corporations. We believe it is essential for Q-

Med to acknowledge the importance of effective knowledge transfer and communication within

the organization, since the company deals with advanced medical products and needs to transfer

this complex product knowledge to its subsidiaries abroad.

Q-Med uses different transmission channels and, in our opinion, the company matches them

effectively with the type of product knowledge they want to transfer. According to Lengel & Daft

(1988) communication is successful when rich transmission channels are used for complex

messages and when lean transmission channels are used for routine messages. In our case study

we have observed that Q-Med’s complex product knowledge is transferred with personal contacts

like training, seminars and other meetings, while routine product knowledge is transferred with

direct materials and brochures. Furthermore, Lengel & Daft (1998) point out that effective

communication depends on the selection of an appropriate transmission channel and the creation

of mutual understanding between the both parties involved in the communication.

Furthermore, we have noticed that Q-Med does not adapt its communication towards the different

subsidiaries abroad, except for the language used in some personal contacts and in the

translations of direct materials and brochures. In this way the grade of misinterpretation and

misunderstandings are avoided, or at least diminished, when important and advanced product

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CHAPTER 5 – CASE ANALYSIS

knowledge is transferred. We have also observed that this is done to emphasize the mutual frame

of reference between the parties involved in the communication. Q-Med’s subsidiaries have also

had the possibility to retain their national cultural features and their hierarchic structure, since the

headquarters enhance the cultural diversity within the company. However, the headquarters at the

same time wish to implement Q-Med’s overall company culture in the subsidiaries abroad to

facilitate the communication between different units. This is, in our opinion, somewhat

contradictory since it ought to be difficult to retain national cultural features in the subsidiaries

abroad and to implement Q-Med’s company culture there simultaneously.

5.1.1 Intensity of communication

According to Gupta & Govindarajan (1991) successful and effective communication requires

adequate information-processing capacity, which is a function of intensity of communication.

Intensity of communication consists of frequency, informality, openness, and density of

communication as described earlier in Chapter 2.2. Depending on what kinds of mechanisms and

in what extent they are used, this influences how the communication turns out to be (ibid).

The frequency of communication, i.e. how often the communication occurs, is relatively high

within Q-Med in our opinion. The subsidiary managers have almost daily contact with the

headquarters and the administrative personnel’s contact is quite regular. However, the sales

personnel from the subsidiaries have almost no contact with the headquarters. We can therefore

argue that the high regularity of contacts remains only on the higher levels of the organization

and cannot be generalized on all levels.

We have also observed that the communication regarding product knowledge is quite formal

within Q-Med, since there are many legal and other formal restrictions which regulate what kind

of knowledge has to be shared to ensure the safety and quality of the products. However, to

ensure that the complex product knowledge is understood and interpreted in a proper way, also

informal communication is used. Moreover, Q-Med encourages open conversation and

discussions between co-workers. We believe that Q-Med’s familiar and relaxed company culture

facilitates the informality of communication. The general managers of the subsidiaries are often at

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CHAPTER 5 – CASE ANALYSIS

the headquarters and socialize regularly with their colleagues from there. Therefore, in our

opinion, the informal corporate socialization mechanisms that are used between the general

managers contribute to the informality of communication.

Overall the communication between Q-Med’s headquarters and its subsidiaries is working well

and the headquarters find it mostly to be uncomplicated, fast and easy. We believe that this

contributes in a high degree to the openness of the communication. However, the headquarters

still hope to improve the contact with all levels of the organization, which as we can see will

develop even further the openness of communication.

We believe that the density of communication, i.e. the number of people involved in the

communication, is quite high within Q-Med, since all general managers are involved in the

communication both at the headquarters as well as in the subsidiaries. Thus, we consider the

general managers as the main transmission channels, since all subsidiaries are relatively small;

i.e. within the range of 7-31 employees.

As a result of all these four factors discussed above, we argue that the intensity of communication

is high within Q-Med on the higher levels of the organization, but low between the headquarters

and the subsidiaries’ lower organizational levels. As Gupta & Govindarajan (1991) have pointed

out, the higher the intensity of communication, the greater becomes the company’s information-

processing capacity, which in its turn is a prerequisite for successful and effective

communication. In our opinion, Q-Med is proficient in communication between higher

organizational levels, although improvements remain to be done on other levels within the

organization.

5.2 Cultural differences – Nordic European vs. Latin European and Anglo cultures

Barriers like cultural differences and communication problems influence the transmission of the

message during different phases of communication process according to Krone et al. (1987). One

of the most important barriers to overcome is therefore language, especially when the contact is

31

CHAPTER 5 – CASE ANALYSIS

not face-to-face (ibid). However, as Javidan et al. (2005) state, face-to-face communication is not

always possible given that it is relatively time and capital consuming. We have noticed that

Q-Med’s headquarters are aware of that cultural differences exist between the headquarters and

the subsidiaries abroad. We have also observed that most of the communication problems within

Q-Med are, at least in some extent, influenced by language differences. Especially large language

problems exist in all organizational levels in the Latin European subsidiaries. However, language

problems do not exist in the same way with the Anglo subsidiaries and the communication is

therefore less troublesome with personnel from these subsidiaries.

5.2.1 Nine cultural dimensions from Project GLOBE

A useful way of exploring cultural similarities and differences is to study cultural clusters

(Javidan & House, 2002). In this way it is possible to identify extent, nature, and dynamics of

cultural similarities and differences around the world (ibid). This type of cultural differences can

be measured by using the nine societal cultural dimensions developed by Project GLOBE:

Uncertainty Avoidance, Power Distance, Institutional Collectivism, In-Group Collectivism,

Gender Egalitarianism, Assertiveness, Future Orientation, Performance Orientation and Human

Orientation (House et al., 2001). The greater the cultural difference between two clusters the

greater are the differences both in organizational and knowledge transfer practices (Javidan &

House, 2002).

In our case study we have discovered that Q-Med’s headquarters consider the following five

cultural differences from Project GLOBE to be of importance. We believe that the cultural

differences described below are considered important since they have led to misunderstandings

and misinterpretations in the past. These in turn have caused communication failures between Q-

Med’s headquarters and its subsidiaries abroad.

• Power Distance influences, according to us, the communication and the transmission

channels used between Q-Med’s headquarters and its Latin European and Anglo

subsidiaries, since it is often up to the subsidiary managers to share and forward product

32

CHAPTER 5 – CASE ANALYSIS

knowledge. Moreover, the more hierarchal structure of these subsidiaries prevents the

open communication and therefore also the product knowledge transfer, in our opinion.

• Institutional Collectivism is considered as an important factor for the communication and

the transmission channels used in our opinion, since Q-Med’s headquarters encourage

team-work and group loyalty more than the Latin European and Anglo subsidiaries. We

believe that this can create a perception gap and misunderstandings between parties

involved in the communication, which may affect the product knowledge transfer in its

turn.

• In-Group Collectivism influences, according to us, Q-Med’s communication and

transmission channels used, since different socialization mechanisms are more commonly

used in the Latin European and Anglo subsidiaries than at the headquarters. We presume

that these socialization mechanisms increase the familiarity between the parties and

therefore facilitate the communication between them. However, this may also create

perception gaps for the communication since personal contacts are more valued in the

Latin European and Anglo subsidiaries than in the Nordic headquarters.

• Assertiveness is an important factor for Q-Med’s communication and transmission

channels used in our opinion, since the personnel from the Latin European and Anglo

subsidiaries are more dominant and confrontational than at the Nordic European

headquarters. We think that this may lead to misunderstandings and conflicts between the

parties involved in the communication and it may be harder to cooperate.

• Performance Orientation is, according to us, seen as an important factor for Q-Med’s

communication and the transmission channels used, since individuals are used to different

kinds of appraisal and communication in the Latin European and Anglo subsidiaries than

at Q-Med’s headquarters in Sweden. We believe that a possible lack of appraisal and

recognition might lead to miscommunication and cause friction between the parties

involved.

33

CHAPTER 5 – CASE ANALYSIS

Our case study confirms that cultural differences do influence Q-Med’s communication and

therefore also the transmission channels used for communication in the cross-border knowledge

transfer. However, not all of the nine cultural dimensions developed by Project GLOBE have an

impact on these according to Q-Med’s headquarters. Hence, the headquarters consider that

Uncertainty Avoidance, Gender Egalitarianism, Future Orientation and Human Orientation have

no impact on the communication, since no communication problems related to these are

recognized. We believe that these cultural differences were excluded, since they do not have

special relevance for the communication and the transmission channels used. Uncertainty

Avoidance is more about how people live and plan their lives to avoid risks and uncertainty.

Gender Egalitarianism, in its turn, is more about minimizing gender inequality in general.

Furthermore, Future Orientation explains only that individuals live more in the present than in

the future. Finally, Human Orientation describes in general the individuals’ tolerance for

mistakes.

34

CHAPTER 6 – FINAL DISCUSSION

6 Final discussion

In this chapter a short review of the purpose of our thesis is presented, followed by the main

findings and conclusions of our research. Finally, limitations of this study and implications for

future research will be presented.

6.1 Findings and conclusions

The purpose of this thesis was to develop an understanding of if/how national cultural differences

influence communication and transmission channels in cross-border transfer of organizational

knowledge. We have investigated which cultural differences have an impact on these aspects and

why. Thereafter we developed our theoretical model by combining theory and our results. The

data collected on Q-Med was analyzed and compared to existing theories, which brought us to

certain conclusions that we present below. Our in-depth analysis of Q-Med has shed light on

cultural differences influence on communication and transmission channels in cross-border

transfer of organizational knowledge, which deserves consideration.

Our case study confirms that cultural differences are important to recognize when transferring

knowledge cross-borders and our findings show that communication and the transmission

channels used for this are influenced by the national cultural differences. Furthermore, we believe

in line with other researchers that it is important to be aware of the fact that national cultural

differences influence knowledge-related behaviors and communication in order to overcome

problems related to these. The problems that cultural differences create when knowledge is

transferred cross-borders may be caused by the company’s inability to recognize such

differences. Therefore, in our opinion, the understanding that cultural differences do have an

impact on communication and transmission channels can provide insights to managers facing

global challenges, given that cross-cultural knowledge transfer is complex and a fact of daily life

for most international companies.

35

CHAPTER 6 – FINAL DISCUSSION

In line with other researchers, we believe that effective cross-border knowledge transfer is

becoming more and more important, since globalization is constantly increasing. However, the

growing globalization does not come with a guidebook. Our study can therefore contribute with

insights for companies which find themselves in similar situations as Q-Med, i.e. knowledge

intensive multinational companies. Our findings confirm that national cultural differences do

influence communication and transmission channels when transferring knowledge cross-borders.

More specifically, our findings show that the cultural differences influencing Q-Med AB’s

communication and transmission channels are: Power Distance, Institutional Collectivism, In-

Group Collectivism, Assertiveness and Performance Orientation. Also language differences are

regarded as an important factor by Q-Med AB. Our conclusions are summarized in Figure 6.1.

We believe that the other cultural dimensions developed by Project GLOBE were excluded, since

they do not have special relevance for the communication and the transmission channels used.

Therefore these cultural differences were also excluded from our theoretical model in Figure 6.1.

Communication and transmission channels

Assertiveness

Institutional Collectivism

In-Group Collectivism

Performance Orientation

Power Distance

Effectiveness of cross-border knowledge

transfer

Language barriers

Language barriers

Figure 6.1 Theoretical model developed by the Authors Source: Authors’ own construction (2007)

36

CHAPTER 6 – FINAL DISCUSSION

6.2 Limitations of our study and implications for future research

We are aware of the fact that our single case study contributes with low transferability, since the

results of this thesis are specific for the company studied. Therefore, our study only adds insights

about which cultural differences influence communication and transmission channels for other

multinational knowledge transferring companies. We are conscious about the fact that a more

complete picture of the research would have been possible to accomplish if both headquarters’

and subsidiaries’ points of views were investigated. We also believe that the possible perception

gaps between these could have affected the outcome of our study. However, we only had the

opportunity to study the headquarters’ point of view as the time frame for our research was

limited. Therefore, our findings and conclusions can serve as a basis for further research and be

added to what has been examined and described in previous research.

Nevertheless, this thesis has provided some insights to a field of study where it still remains a

great deal of areas in which to conduct additional research. Our addition to theory is based on a

single empirical study and therefore we believe that the following areas could be of interest for

further study:

• Make the same study, but investigate both the headquarters’ and the foreign subsidiaries’

point of views to get a more complete picture of the situation.

• Make a similar study on a larger sample of companies and investigate if the results may

vary between these and if there are other additional cultural differences that affect the

companies’ communication and transmission channels.

• Make a similar study but investigate a larger sample of cultural clusters.

• Study the impact of cultural differences on all four factors from Gupta & Govindarajan’s

(2000) model and therefore investigate more complete influence of cultural differences

on the effectiveness of cross-border transfer of organizational knowledge.

37

REFERENCES

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House R. J., Hanges P. J., Javidan M., Dorfman P. & Gupta V. (2004) Culture, Leadership, and

Organizations – The GLOBE Study of 62 Societies, Sage Publications, Inc., Thousand Oaks, USA

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samhällsvetenskapliga ämnen, Studentlitteratur, Lund, Sweden

Javidan M. & House R. J. (2001), Cultural Acumen for the Global Manager: Lessons from

Project GLOBE, Organizational Dynamics, 29 (4), pp. 289-305

Javidan M. & House R. J. (2002) Leadership and Cultures around the World: Findings from

GLOBE – An Introduction to the Special Issue, Journal of World Business, 37, pp. 1-2

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Javidan M., Stahl G. K., Brodbeck F. & Wilderom C.P.M. (2005), Cross-border Transfer of

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19, No. 2, pp. 59-76

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Krone K. J., Jablin F. M. & Putnam L. L. (1987), Communication Theory and Organizational

Communication. In Krone K. J., Putnam L. L., Roberts K. H. & Porter L. M. (Eds.), Handbook of

Organizational Communication: An Interdisciplinary Perspective, Sage, Newbury Park, USA,

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McClelland D. C. (1985), Human Motivation, IL: Scott, Foresman, Glenview, USA

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Internet GLOBE’s public website: http://www.thunderbird.edu/wwwfiles/ms/globe, 03/11/2006

Q-Med’s website: http://www.q-med.com, 15/11/2006

Interview Personal interview with Manager Internal Communications Annelie Lundell and Corporate HR

Manager Christina Toth on the 14th of December 2006 at 9.00-10.00 at the Headquarters of

Q-Med AB in Uppsala, Sweden.

Other references Q-Med Årsredovisning 2005

41

APPENDIX I

Appendix I – The GLOBE countries in 10 cultural clusters1

Anglo Australia Costa Rica Canada Ecuador (English speaking part) El Salvador Ireland Guatemala New Zealand Mexico South Africa Venezuela (white sample) United Kingdom United States Latin Europe France Israel Italy Confucian Asia China Portugal Hong Kong Spain Japan Switzerland South Korea (French speaking part) Singapore Taiwan Middle East Egypt Kuwait Eastern Europe Albania Morocco Georgia Qatar Greece Turkey Hungary Kazakhstan Poland Nordic Europe Denmark Russia Finland Slovenia Sweden Germanic Europe Austria Southern Asia India Germany Indonesia (former East) Iran Germany Malaysia (former West) Philippines Netherlands Thailand Switzerland (German speaking part) Sub-Sahara Africa Namibia Nigeria Latin America Argentina South Africa Bolivia (black sample) Brazil Zambia Colombia Zimbabwe 1 Dorfman et al. (2004)

APPENDIX II

Appendix II – The GLOBE societal cultural scores for Nordic Europe, Latin Europe and Anglo clusters1

Nordic Europe As is Should be 1. Uncertainty avoidance 5,19 3,76 2. Power distance 4,54 2,55 3. Institutional collectivism 4,88 4,08 4. In-Group collectivism 3,75 5,65 5. Gender Egalitarianism 3,71 4,82 6. Assertiveness 3,66 3,56 7. Future Orientation 4,36 4,76 8. Performance Orientation 3,92 5,84 9. Human Orientation 4,17 5,64

Latin Europe As is Should be 1. Uncertainty avoidance 3,62 4,98 2. Power distance 5,33 2,52 3. Institutional collectivism 3,86 5,32 4. In-Group collectivism 5,52 6,06 5. Gender Egalitarianism 3,41 4,77 6. Assertiveness 4,15 3,54 7. Future Orientation 3,54 5,75 8. Performance Orientation 3,85 6,24 9. Human Orientation 4,03 5,33

Anglo As is Should be 1. Uncertainty avoidance 4,42 4,09 2. Power distance 4,97 2,86 3. Institutional collectivism 4,46 4,32 4. In-Group collectivism 4,30 5,84 5. Gender Egalitarianism 3,40 4,91 6. Assertiveness 4,14 3,89 7. Future Orientation 4,08 5,33 8. Performance Orientation 4,37 6,03 9. Human Orientation 4,20 5,40

1 House at al. (2004)

APPENDIX II

Nordic Europe cluster's societal cultural scores

1234567

1. Uncertainty avoidance

2. Power distance

3. Institutional collectivism

4. In-Group collectivism

5. Gender Egalitarianism6. Assertiveness

7. Future Orientation

8. Performance Orientation

9. Human Orientation

As isShould be

Latin Europe cluster's societal cultural scores

1234567

1. Uncertainty avoidance

2. Power distance

3. Institutional collectivism

4. In-Group collectivism

5. Gender Egalitarianism6. Assertiveness

7. Future Orientation

8. Performance Orientation

9. Human Orientation

As is

Should be

Anglo cluster's societal cultural scores

1234567

1. Uncertainty avoidance

2. Power distance

3. Institutional collectivism

4. In-Group collectivism

5. Gender Egalitarianism6. Assertiveness

7. Future Orientation

8. Performance Orientation

9. Human Orientation

As is

Should be

APPENDIX II

Nordic Europe, Latin Europe and Anglo Nordic Europe: As is Latin Europe: As is Anglo: As is1. Uncertainty avoidance 5,19 4,18 4,422. Power distance 4,54 5,21 4,973. Institutional collectivism 4,88 4,01 4,464. In-Group collectivism 3,75 4,80 4,305. Gender Egalitarianism 3,71 3,36 3,406. Assertiveness 3,66 3,99 4,147. Future Orientation 4,36 3,68 4,088. Performance Orientation 3,92 3,94 4,379. Human Orientation 4,17 3,71 4,20

Mixture of Nordic Europe, Latin Europe and Anglo clusters' societal cultural scores

1234567

1. Uncertainty avoidance

2. Power distance

3. Institutional collectivism

4. In-Group collectivism

5. Gender Egalitarianism6. Assertiveness

7. Future Orientation

8. Performance Orientation

9. Human Orientation

Nordic: As isLatin: As isAnglo: As is

APPENDIX III

Appendix III – Interview guide in English

1. Respondents’ background:

1.1. Name and title?

1.2. Work assignments?

1.3. Years of working in the company?

1.4. In what way are you involved in the communication and the transfer of Q-Med’s product knowledge to the

subsidiaries?

2. Communication and transmission channels:

2.1. How do the headquarters communicate with the subsidiaries regarding product information1? Why do the

headquarters use these transmission channels? Are there some variations between different subsidiaries?

2.2. Are you satisfied with this type communication or would you prefer something else? Why?

2.3. How often have the headquarters contact with the subsidiaries? Do you feel it is enough/not enough? Why?

2.4. What language do the headquarters use when communicating with the subsidiaries? Is this always the case

or are there some exceptions?

2.5. How formal or informal is the communication regarding product information? Why?

2.6. How often do you meet with your colleagues from the subsidiaries and in what circumstances? How do

you experience the solidarity and cohesion between the headquarters and the subsidiaries?

2.7. How many persons at the headquarters are involved in the communication with the subsidiaries? With how

many persons do the headquarters have contact in the subsidiaries?

2.8. How easy is it for you to contact the subsidiaries and them you?

3. Cultural differences:

3.1. What kind of cultural differences have you experienced in the contact with your subsidiaries? How have

these influenced the communication and therefore the transmission channel used? Please give some

examples.

3.2. Do you recognize the nine cultural differences from Project GLOBE presented below? In what way?

3.3. How have the cultural differences that you recognize from Project GLOBE influenced the communication

between the headquarters and your subsidiaries located in Latin European and Anglo cultures? Why/why

not? Please give some examples.

1 The definition “product information” includes here both information and knowledge as the definition is used in this way in the company, but the focus in this interview is on the product knowledge.

APPENDIX III

3.4. Have some of these differences caused miscommunication or communication failure? How/why? Please

give some examples. If Yes, what did you do to overcome the problems?

3.5. How have the cultural differences that you recognize from Project GLOBE influenced the headquarters and

the transmission channels used for the transfer of product information to your subsidiaries located in Latin

European and Anglo cultures? Why/why not? Please give some examples.

3.6. Have some of the differences that you recognize had a larger or less influence than others? Why?

3.7. Are there some other cultural differences, which have not been mentioned here, that you find important?

How have these influenced the communication and the transmission channels used? Why?

According to Project GLOBE2:

• Uncertainty Avoidance: most people lead highly structured lives with few unexpected events in a lower

degree both in Latin European and Anglo cultures3 than in Nordic European cultures.

• Power Distance: the followers are expected to obey their leaders without question in a higher degree

both in Latin European and Anglo cultures than in Nordic European cultures.

• Institutional Collectivism: leaders encourage group loyalty even if individual goals suffer in a lower

degree both in Latin European and Anglo cultures than in Nordic European cultures.

• In-Group Collectivism: individuals feel great loyalty toward their organization in a higher degree both

in Latin European and Anglo cultures than in Nordic European cultures.

• Gender Egalitarianism: groups try to minimize gender inequality in a lower degree both in Latin

European and Anglo cultures than in Nordic European cultures.

• Assertiveness: individuals are dominant in their relations with each other in a higher degree both in

Latin European and Anglo cultures than in Nordic European cultures.

• Future Orientation: individuals live for the present rather than for the future in a lower degree both in

Latin European and Anglo cultures than in Nordic European cultures.

• Performance Orientation: individuals are encouraged to strive for continuously improved performance

in a higher degree both in Latin European and Anglo cultures than in Nordic European cultures.

• Human Orientation: individuals are tolerant of mistakes in a lower degree in Latin European cultures

than in Nordic European cultures but in a higher degree in Anglo cultures than in Nordic European

cultures.

Thank you for your time and cooperation!

2 The definitions of the nine GLOBE dimensions can be found in House et al. (2001). The data for comparisons between Latin European, Anglo and Nordic European cultures can be found in House et al. (2004). 3 The cultural clusters developed by Project GLOBE are here referred to as “cultures” in order to make the questions simpler and easier to comprehend.

APPENDIX IV

Appendix IV – Interview guide in Swedish

1. Respondenternas bakgrund:

1.1. Namn och titel?

1.2. Arbetsuppgifter?

1.3. Antal år i företaget?

1.4. På vilket sätt är ni involverade i Q-Meds kommunikation och överföring av produktkunskap till

dotterbolagen?

2. Kommunikation och överföringskanaler:

2.1. Hur kommunicerar ni på huvudkontoret med dotterbolagen angående produktinformation1? Varför

använder huvudkontoret dessa överföringskanaler? Finns det några skillnader mellan olika dotterbolag?

2.2. Är ni nöjda med denna typ av kommunikation eller skulle ni föredra något annat sätt? Varför?

2.3. Hur ofta har huvudkontoret kontakt med dotterbolagen? Tycker ni det är tillräckligt? Varför/varför inte?

2.4. Vilket språk använder ni på huvudkontoret när ni har kontakt med dotterbolagen? Finns det några

undantag? Varför?

2.5. Hur formell eller informell är kommunikationen angående produktinformation? Varför?

2.6. Hur ofta träffar representanter från huvudkontoret sina kollegor i dotterbolagen och i vilka sammanhang?

Hur upplevs sammanhållningen?

2.7. Hur många personer på huvudkontoret är inblandade i kontakten med dotterbolagen? Med hur många

personer har ni kontakt på respektive dotterbolag?

2.8. Hur enkelt är det för er på huvudkontoret att kontakta dotterbolagen och för dem att kontakta er?

3. Kulturella skillnader:

3.1. Hurdana kulturella skillnader har ni upplevt i kontakten med era dotterbolag? Hur har dessa påverkat

kommunikationen och därmed användandet av överföringskanaler? Ge gärna några exempel.

3.2. Känner ni igen de nio kulturella skillnader nedan som är framtagna av Project GLOBE? På vilket sätt?

3.3. Hur har de kulturella skillnader som ni känner igen från Project GLOBE påverkat kommunikationen

mellan huvudkontoret och era dotterbolag i latineuropeiska och anglosaxiska länder? Varför/varför inte?

Ge gärna några exempel.

1 Begreppet ”produktinformation” innefattar här både information och kunskap såsom brukligt i företaget, men fokus ligger på produktkunskap i denna intervju.

APPENDIX IV

3.4. Har några av dessa skillnader orsakat kommunikationsproblem eller misslyckad kommunikation?

Hur/varför? Ge gärna några exempel. Om Ja, hur gjorde ni för att komma till rätta med problemet?

3.5. Hur har de kulturella skillnader som ni känner igen från Project GLOBE påverkat användandet av

överföringskanaler för att flytta produktinformation till era dotterbolag i latineuropeiska och anglosaxiska

länder? Varför/varför inte? Ge gärna några exempel.

3.6. Har några av dessa skillnader som ni känner igen haft en större eller mindre inverkan än andra? Varför?

3.7. Finns det några ytterligare kulturella skillnader, som inte nämnts här, som ni anser viktiga? Hur har dessa

påverkat kommunikationen och användandet av överföringskanaler? Varför?

Enligt Project GLOBE2:

• Uncertainty Avoidance3: individer lever strukturerade liv med få oväntade händelser i lägre grad både i

latineuropeiska och anglosaxiska länder4 än i nordiska länder.

• Power Distance: individer förväntas lyda sina ledare utan att ifrågasätta dessa i högre grad både i

latineuropeiska och anglosaxiska länder än i nordiska länder.

• Institutional Collectivism: ledare uppmuntrar grupplojalitet även om individuella mål får lida på grund

av detta i lägre grad i både latineuropeiska och anglosaxiska länder än i nordiska länder.

• In-Group Collectivism: individer känner stor lojalitet för sin organisation i högre grad i både

latineuropeiska och anglosaxiska länder än i nordiska länder.

• Gender Egalitarianism: grupper försöker jämna ut könsskillnader i lägre grad i båda latineuropeiska

och anglosaxiska länder än i nordiska länder.

• Assertiveness: individer är dominanta i sina relationer med andra i högre grad i både latineuropeiska

och anglosaxiska länder än i nordiska länder.

• Future Orientation: individer lever mer i nuet än för framtiden i lägre grad i både latineuropeiska och

anglosaxiska länder än i nordiska länder.

• Performance Orientation: individer uppmuntras att sträva efter kontinuerligt förbättrade prestationer i

högre grad i både latineuropeiska och anglosaxiska länder än i nordiska länder.

• Human Orientation: individer är toleranta för misstag i lägre grad i latineuropeiska länder än i nordiska

länder, men i högre grad i anglosaxiska länder än i nordiska länder.

Tack för er tid och medverkan!

2 Definitionerna av de nio GLOBE dimensionerna kommer från House et al. (2001). Data för jämförelser mellan latineuropeiska, anglosaxiska och nordiska länder kommer från House et al. (2004). 3 Benämningarna på de nio kulturella dimensionerna framtagna av Project GLOBE har inte översatts för att undvika missledande översättning. 4 “Länder” syftar i detta fall på de kulturella kluster som är framtagna av Project GLOBE. Detta för att göra frågorna enklare och för att underlätta förståelsen av frågorna.