A SINGLE CASE STUDY OF KNOWLEDGE TRANSFER WITHIN THE FIRM131413/FULLTEXT01.pdf · moving knowledge:...

MOVING KNOWLEDGE: A SINGLE CASE STUDY OF KNOWLEDGE TRANSFER

WITHIN THE FIRM

UPPSALA UNIVERSITY, UPPSALA, SWEDEN DEPARTMENT OF BUSINESS STUDIES

BUSINESS STUDIES C, MANAGEMENT OF INTERNATIONAL BUSINESS BACHELOR´S THESIS, FALL 2006

TUTOR: OLIVIA KANG 2007-01-12

LEONARD MÜNZ ([email protected]); CHRISTOFFER-MAURITZ RATAJCZAK ([email protected])

KNOWLEDGE TRANSFER WITHIN THE FIRM – A SINGLE CASE STUDY

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ABSTRACT During the last decade, the concept of knowledge has gained in-creased attention within the research field of international busi-ness. This has its backdrop in the knowledge-based view of the firm, seeing knowledge as a resource and capability. Accordingly, knowledge has been stated to be a prominent factor in regard to firm survival and success. In this thesis, we are to identify the type of knowledge that exists, and examine how this knowledge is trans-ferred, within a firm. This has been done through a single case study, analyzing the knowledge transfer on an intra-firm basis be-tween the head quarter and the subsidiary units, as well as among the subsidiary units. Data has been obtained through interviews and secondary materials. The case study has concluded in an analysis illustrating how knowledge can be ennobled outside the head quarter, and lost, if not incorporated into the firm. KEYWORDS Knowledge; Tacit Knowledge; Explicit Knowledge; Knowledge Transfer


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Table of Contents 1. FRAMING OF THE PROBLEM ...................................... 5

1.2 FREE REINS.........................................................................5

2. OUR APPROACH ......................................................... 7

2.1 PURPOSE AND CONTRIBUTION............................................7

2.2 RESEARCH QUESTIONS.......................................................8

3. KNOWLEDGE AND KNOWLEDGE TRANSFER............. 9

3.1 KNOWLEDGE AND THE FIRM ..............................................9

3.2 DEFINING KNOWLEDGE......................................................9

3.2.1 Choosing a Concept of Knowledge 11 3.3 DEFINING KNOWLEDGE TRANSFER ..................................12

3.3.1 Choosing a Concept of Knowledge Transfer 13 3.3.2 Transferring Individual Knowledge 15 3.3.3 Transferring Organizational Knowledge 15

4. RESEARCH METHODOLOGY .................................... 16

4.1 PROCEDURE ......................................................................16

4.2 COLLECTION OF PRIMARY DATA ......................................17

4.3 COLLECTION OF SECONDARY DATA.................................17

4.4 QUALITATIVE METHODOLOGY .........................................18

4.4.1 A Single Case Study 18 4.4.2 Interviews 19 4.4.3 Interview analysis 20

5 A CASE STUDY OF HÄSTENS ..................................... 21

5.1 HÄSTENS IN RETROSPECT .................................................21


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5.1.1 The Expansion of the Business: From Köping… 21 5.1.2 …to Beijing 22

5.2 OUTLINING THE ORGANIZATION ......................................22

5.3 KNOWLEDGE TRANSFER IN HÄSTENS ..............................24

5.3.1 Vertical Knowledge Transfer (HQ CMs) 24 5.3.2 Lateral Knowledge transfer (CM CM) 26 5.3.3 Vertical Knowledge Transfer (CMs HQ) 28

6. ANALYSIS .................................................................. 30

7. CONCLUSIONS........................................................... 34

8. SUGGESTIONS FOR FUTURE RESEARCH................... 37

9 REFERENCES.............................................................. 38

9.1 PRINTED............................................................................38

9.2 INTERNET..........................................................................41

9.2.1 Web Pages 41 9.2.2 E-mails 41

9.3 INTERVIEWS......................................................................41

9.4 LECTURES.........................................................................42

10. APPENDICES............................................................ 43

10.1 APPENDIX 1 - INTERVIEW ...............................................43

10.1.1 Dag Henning - Stockholm on the 1st of December 2006 43 10.1.2 Interview topics 57

10.2 APPENDIX 2 - UNUSED E-MAIL SURVEY.........................58

10.3 APPENDIX 3 - THE FOREIGN MARKETS (IN ALPHABETICAL

ORDER) ...................................................................................64


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1. Framing of the Problem For the last decade, the impact of knowledge has been widely discussed on a managerial level

within the firm. In the academic world, numerous international business scholars have stated

that knowledge is of crucial importance to firm survival and success. This is all in line with the

knowledge-based view of the firm, which refers to the company as an institution for creating

and applying knowledge. (Grant 2004, pp. 176-177)

This thesis is concerned with the topic of knowledge and its transfer on an intra-firm ba-

sis. We have done a single case study of Hästens AB (Hästens), a Swedish manufacturer of

luxury beds, to identify the knowledge and the transfer of knowledge within this international

company. The focus has been on vertical knowledge transfer between the head quarter (HQ)

and subsidiary units as well as on a lateral level among subsidiary units. Interviews have been

done with the communication manager of Hästens, Emma Sandsjö (Sandsjö), and with the

country manager (CM) of the German speaking markets, Dag Henning (Henning).

Our case study has shown that a lack of knowledge transfer is occurring in the firm. The

transfer of knowledge is imperfect, since the HQ doesn’t make use of the knowledge being

transferred among the CMs of foreign markets, and it is not transferred back to the HQ.

Hence, it is not incorporated into the organization as a whole. We believe that this is some-

thing that should be acknowledged by the HQ in order to improve the intra-firm knowledge

transfer and employ the untapped resource of organizational knowledge, existing outside the

boundaries of the HQ. This specific knowledge has been given the name ennobled organiza-

tional knowledge.

1.2 Free Reins

Hästens has been undergoing a rapid internationalization process during the last ten years

(Sandsjö 2006-10-18). The fast growth is linked to the resolute decision of the CEO to give

free reins to the country managers of foreign markets (Henning 2006-10-05). Today, Hästens

is showing an increase in profits and the company is present in more than 20 countries over


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the world. The CMs are essential for the future expansion of the business. (Sandsjö 2006-10-

18)

A CM at Hästens starts his/her1 career by attending a formal introduction course at the

HQ. Here they learn about the company, the concept, products, marketing policies et cetera.

After this initial course at the HQ they are solely in charge of the business on their respective

market: opening up and managing Hästens stores. (Henning 2006-12-01)

There exists an intense communication and knowledge transfer among the CMs of

Hästens. On a regular basis they discuss the business and related aspects, such as results, facts,

marketing, localization of stores, sales technique, and such. This interaction does not involve

the HQ. Moreover, there are no direct benefits linked to this informal sharing, or transfer, of

knowledge. However, all CMs have to attend a formal meeting once a month at the HQ. Here

they go over certain topics concerning the business. (Henning 2006-12-01) Evidently, there is

a transfer of knowledge occurring in Hästens on both a formal and an informal basis.

1 We will further recall to a CM as male; the major part of the CMs are men.


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2. Our Approach The main reason for why we embarked on our study in the first place comes down to one

word: knowledge. This delicate concept has puzzled philosophers, as well as business re-

searchers, and has been stated to be everything from a public good, power, a re-

source/capability, or justified true beliefs (Hohenthal 2006-09-28). Consequently, one can say

that the main reason for the choice of topic in this thesis relates to our fervent interest in

knowledge per se. Knowledge is hard to define in an accurate way, due to the fact that it is in-

tangible and fuzzy in itself; making it even more fascinating.

After having written a term paper about Hästens for a course at Uppsala University in

Management of International Business2, we became more interested in the specific area of

knowledge transfer within the firm. Hence, it came as natural to dig deeper into this field in

our thesis and to find the answers to some of our questions.

2.1 Purpose and Contribution

Today, there is no overall framework or conforming ways to address the concept of knowl-

edge transfer. Different scholars from different research fields chose to call it either knowl-

edge sharing, transfer, flow et cetera. (Persson 2006, p. 20)

With this paper, we aim to add a piece to the puzzle of the concept concerning knowl-

edge transfer, through a single case study of a multinational corporation (MNC). This paper is

a mean to declare that knowledge transfer is a topic that should be acknowledge by the firm.

Moreover, there exists a research gap when it comes to addressing the concept of vertical

transfer of knowledge. The secondary materials we have come across have been referring to

the vertical transfer of knowledge in general; we have taken the position of seeing it as a dual

vertical transfer of knowledge from HQ to subsidiaries and in the opposite directions.

2 In this term paper, Kunskapshantering – ett redskap för en accelererande internationaliseringsprocess, we ana-lyzed the impact of knowledge management on the pace of the internationalization process of the firm.


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The purpose of this thesis is to contribute to the research of knowledge transfer through

analyzing a complete knowledge transfer (as shown in figure 1) within a firm: from HQ to the

subsidiaries, among subsidiaries and from subsidiaries back to HQ.

HQ CM CM HQ

We have looked on this complete intra-firm transfer of knowledge with the help of a

single case study of Hästens. The reason for choosing Hästens is to examine a local firm un-

dergoing a rapid and vast internationalization process, in order to make general conclusions on

the topic of knowledge transfer within an MNC.

2.2 Research Questions

It is not in our interest to uncover an ideal conceptualization of knowledge in this paper. We

firstly aim at investigate and describe the characteristics of knowledge transfer and transfor-

mation with in the firm. We believe this to be of crucial importance since the definitions of

knowledge have been changing dramatically over the past decade, and may not longer go hand

in hand with those found in the well-known knowledge model of Nonaka (as described in this

paper). The perhaps most common way to distinguish knowledge is to see it as either explicit

or tacit (Polanyi 1966, p. 4) or as knowing how or knowing about (Grant 2004, p. 177). In our

thesis we choose to see transferred knowledge to be either tacit or explicit. With these aspects

in mind, the following questions are to be analyzed:

Vertical and lateral knowledge transfer within the firm;

What does it consist of?

How is it transferred?

DIRECTION OF KNOWLEDGE TRANSFER

FIGURE 1. A MODELL OF COMPLETE KNOWLEDGE TRANSFER WITHIN A FIRM AS CONSTRUCTED BY THE AUTHORS


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3. Knowledge and Knowledge Transfer

3.1 Knowledge and the Firm

The word knowledge holds myriad definitions and dimensions (Persson 2006, p. 22). It has

been discussed from different perspectives by philosophers, as well as scholars, through out

history (Hohenthal 2006-09-28). In this thesis we will focus on the business researchers’ view

on knowledge since we are doing research in international business.

At the academic level, the management of resources and capabilities has been stated to

be of crucial importance for a firm’s survival and success. Knowledge per se, can be defined

as a productive resource since both machines and people possess knowledge, and it is a capa-

bility in the sense, that it can be created, developed, imitated, et cetera, within the firm. (Grant

2004, pp. 176-177). During the last decade this economic standpoint, linked to the value of re-

sources and capabilities, has evolved into a knowledge-based view of the firm – to see the firm

as an institution for creating and applying assets of knowledge. It is regarded to be a major

backdrop on the increased focus on the topic of knowledge in the field of international busi-

ness. (Grant 2004, p. 183)

3.2 Defining Knowledge

To begin with, we shortly point out the position of Johnson, McManus and Magee (cited

Kogut & Zander 1993) who claim knowledge to be a public asset, and that the firm is respon-

sible to gain from the possession of it. Samuelson and Arrow (cited Spender 1996), also share

this collective approach by considering knowledge to be a public good (as opposed to private

goods such as land and capital) since the use by one person doesn’t constrain others from do-

ing the same.

Other scholars have defined knowledge from the view of how it is acquired. This distinc-

tion initially stems from Penrose (1959); she claimed knowledge to be either experiential or


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objective3. Objective knowledge is acquired through certain pragmatic methods (e.g., market

research), whereas experiential knowledge is gained through learning by doing and simply

practicing business (Petersen et al 2001).

The definition of knowledge that perhaps is the most common one is to see it as either

tacit or explicit (Dyer & Nobeoka 2000). Grant takes this standpoint as he discusses the impor-

tance of managing knowledge in the firm. However, he claims that only explicit knowledge

can be seen as a public good, due to the possibilities of transferring it across individu-

als/space/time; once created, it can be replicated among incalculable individuals at a very low

cost. (Grant 2004, p. 177) Furthermore, Grant (2004, p. 177) describes tacit knowledge as

knowing how, and explicit knowledge as knowing about.

By using a reflective quotation from Polanyi the founder of tacit knowledge himself

(Collins 2001), we can illustrate the relationship between tacit and explicit knowledge in a

more philosophical way:

You can identify one face out of thousands, but it is nearly impossible to give an adequate

description of this face to another person, so that she is able to identify the face (Polanyi

1966, p. 4).

A different standpoint on the concept of tacit knowledge is presented by Kitcher (1978)

who gives the linguistics perspective on the subject:

The English speaker’s knowledge of the rules of English grammar is not uncoverable by

presenting him with a formulation of the rules of grammar, even if the speaker understands

the vocabulary used in the formulation.

It should be acknowledged that Japanese business scholars are known for their commit-

ment to studying knowledge and its related aspects (Kaptalan-Nagy 2006-10-09). Nonaka

(1991) describes tacit knowledge as highly personal and as something that only can be trans-

3 This standpoint was also taken by Johanson & Vahlne (1977) in their renowned paper on the internationaliza-tion process of the firm, also known as the Uppsala model.


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ferred successfully through observation, imitation or socialization; in other words: tacit

knowledge is intuitive and silent (Hedlund 1994).

In contrast to tacit knowledge, as described above, explicit knowledge is formal in its na-

ture (Nonaka 1991), and it can be codified into documents, reports, data sheets and so on

(Persson 2006, p. 22). In fact, only a small part of the knowledge we possess is explicit and we

know more than we actually can say (Polanyi cited Osterloh & Frey 2000).

The difference between tacit and explicit knowledge should be seen as a continuum

rather than a dichotomy (Kogut & Zander cited Osterloh & Frey 2000). The distinction is yet

necessary in order to be able to grasp the concept of knowledge and to argue on the topic

(Demsetz 1991). In addition, tacit and explicit knowledge can’t be transferred in the same

way, and in this lays a primary difference of the two knowledge concepts (Grant 2004, pp.

185-186).

Bhatt (2002) argues that knowledge is either individual or organizational. The latter is

easier to employ and control as opposed to individual knowledge which is highly personal. He

further expresses this as cited below:

Individual knowledge is often expressed through personal creativity and self-expression.

Organizational knowledge is reflected in products and services that an organization creates

and sells to its customers (Bhatt 2002, p. 39).

3.2.1 Choosing a Concept of Knowledge

As stated above, knowledge can be viewed in diverse ways. Knowledge is intangible and

fuzzy in itself, which makes is hard to define in a precise way (Bhatt 2002). In this paper we

don’t intend to fully uncover the concept of knowledge, and hence we concur with Grant by

saying that this is not an arena in which we choose to compete - it has intrigued some of the

greatest thinkers of history (Grant 1996). Nonetheless, one can always stand on the shoulders

of giants. We ought to accept one of the knowledge concepts used among business scholars of

today, and thus we have chosen to use the distinction, as defined by Nonaka (and many others

with him), to see it as tacit or explicit.


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It should be stressed that we have chosen to take hold of the concept of knowledge by

partly generalizing through the standpoint of Grant (1996), Spender (1996) and Osterloh &

Frey (2000), which referred to explicit knowledge as organizational knowledge. Tacit knowl-

edge, on the other hand, can be seen as individual based on the statement that it is highly per-

sonal in its character (Nonaka 1991 & Bhatt 2002). In other words, it resides within the indi-

vidual (Osterloh & Frey 2000). These views on knowledge are however generalizations; it

should not be neglected that organizational as well as individual knowledge can consist of

both tacit and explicit knowledge (Regnér 2007-01-04). In this paper we view organizational

knowledge as mainly explicit, whereas individual knowledge is seen as being primarily tacit.

3.3 Defining Knowledge Transfer

If you have knowledge, let others light their candles at it.

(Fuller, www.quotationspage.com)

Szulanski (1996) recalled to moving knowledge as knowledge “transfer” (and hence not

knowledge “diffusion”, “flow” et cetera), saying that it is something distinct being transferred

among individuals on an intra-firm basis.

The concept of knowledge transfer has been a topic in MNC research for a long time,

principally in relation to the companies’ penetrations of foreign markets (Persson 2006, p. 19).

Some scholars argue that knowledge transfer is of critical importance to organizations vis-à-

vis their competitive advantage (Reagans 2003). Still, there is no unison way of addressing the

problem and possibilities of knowledge transfer and consequently no conforming general

framework. Knowledge transfer, in different forms, can occur anywhere and among all indi-

viduals throughout an organization. (Persson 2006, pp. 19-20)

From the perspective of intra-MNC (i.e. the position we have taken in this paper),

knowledge transfer can be separated into two research fields (Persson 2006, p. 20) where one

is concerned with vertical knowledge transfer, between the HQ and the subsidiary units,


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(Bresman et al. 1999), and the other with lateral knowledge transfer, among the subsidiary

units themselves. (Andersson et al. 2002).

3.3.1 Choosing a Concept of Knowledge Transfer

We have identified the distinct type of knowledge that is transferred in Hästens through our

case study and taken the position of using the word “transfer” in regard to sharing knowledge

both vertically and laterally; from HQ to CMs, among CMs and from CMs to HQ. Since the

research has been narrowed down, partly by doing a single case study on an intra-firm basis,

we believe that we can manage to stand with one foot in each field.

Knowledge transfer can be said to consist of both sharing and converting knowledge, of

which both are ought to be seen as equally important for a firm’s continued existence (Regnér

2007-01-05). Knowledge conversion is a process which addresses the different knowledge

types as mentioned above.

In this thesis, knowledge “transfer” will be used as a term of wide comprehension con-

sisting of all the above mentioned aspects. Hence, knowledge conversion will be included

when further discussing knowledge transfer. We hereby state that knowledge that has been

converted must have been transferred within the firm.

Nonaka (1991) defines four different patterns for how tacit/explicit knowledge can be

converted: [socialization], [externalization], [internalization], and [combination]. These pat-

ters are shown in Nonaka’s knowledge conversion matrix (Grant 2004, p.182) which has in-

spired the authors to construct a modified reproduction as seen in figure 2. In this illustration,

which we have chosen to call a figure of knowledge transfer, we recall to knowledge as indi-

vidual/organizational; whereas the four original terms for knowledge conversion are used.

In this paper we have focused on knowledge transfer and hence we have seen those four

patterns as means for transferring knowledge and not solely for converting it. Further, we have

taken the position of saying that knowledge that has been converted and received by an indi-

vidual, in line with Nonaka’s four patterns, must have been transferred in some kind of way.

One way to transfer individual knowledge from its source is through [socialization]. It is

then received as individual knowledge by the recipient. This is done through some kind of in-


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teraction. (Grant 2004, p. 182) Nevertheless, it doesn’t have to mean that the two parts are

aware of that knowledge actually has been transferred among them. (Nonaka 1991)

A particularly interesting phase is [externalization] - the transfer of individual knowl-

edge received as organizational by the addressee. Individual knowledge becomes [external-

ized] when codified into documents, et cetera, in order to make use of it in the organization as

a whole. (Grant 2004, p. 183)

Organizational knowledge can be transferred and obtained as individual. This is done

through the subtle process of [internalization] (Nonaka 1991). A possible scenario for [inter-

nalization] could be the following: let’s say that an employee’s proposal for a revision of a

company’s logistic system is approved by the management. This innovation is eventually

taken for granted and used on a daily basis by all employees of the organization. Such circum-

stances portray the [internalization] of knowledge; how it’s transferred from being organiza-

tional to individual.

The last step is the transfer of organizational knowledge received as organization. This is

a matter of synthesis of information and would normally be made with the help of an IT Sys-

tem, combining different units of information from different sources. This last step is referred

to as [combination]. (Grant 2004, p. 182)

1. individual individual [socialization]

2. individual organizational [externalization]

3. organizational individual [internalization]

4. organizational organizational [combination]

FIGURE 2. A MODEL OF KNOWLEDGE TRANSFER WITHIN A FIRM AS CONSTRUCTED BY THE AUTHORS


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3.3.2 Transferring Individual Knowledge

As mentioned in part 3.2, knowledge can be characterized in regard to its transferability.

Individual knowledge can not (due to its nature) be transferred as a separate asset (Han-

sen 1999) since it is highly personal and resides within the individual (Osterloh & Frey 2000).

It is of a subtle cognitive dimension, deeply rooted within a person, making it hard to express

and formulate in words or even symbols (Nonaka 1991). Collins (2001) stated that individual

knowledge only can be transferred by personal contact and not set out in formulas or verbal

description for action. Nonaka (1991) said that it only can be received by a recipient through

[socialization] or [externalization]. Furthermore, he claimed that making individual knowl-

edge obtainable by others (i.e., making it organizational) is the central activity of the firm; it

can take place continuously and at all levels of the organization. This is directly linked to Pers-

son’s (2006, pp. 19-20) thesis in which he argues that knowledge transfer, whether individual

or organizational, can occur anywhere in the MNC.

Osterloh & Frey (2000) argue that individual knowledge is a crucial source of sustain-

able competitive advantage because it is difficult for competitors to replicate it. From a strictly

organizational perspective, Andersson (2003, p.11) states, that individual knowledge is of little

value if not integrated into the firm.

3.3.3 Transferring Organizational Knowledge

In contrast to individual knowledge, Osterloh & Frey (2000) declare that organizational

knowledge has the character of a public good (if ruling out aspects such as property rights and

other legal aspects). Hence, it can be transferred and shared easily, and less costly, among the

members of an organization (Grant 2004, p. 177) since it is not tied to any individual (Persson

2006, p. 22). As mentioned above, this type of knowledge is easy to put into print; it doesn’t

need personal interaction in order to be transferred from one person to another (Nonaka 1991).


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4. Research Methodology

4.1 Procedure

Our first intentions with this thesis were to discuss knowledge-sharing within the firm. After

having written a term paper (Gebro et al. 2006) about the internationalization process of

Hästens, we contacted the HQ, asking if there were any possibilities to make further studies.

Having undertaken two additional interviews; of which one was an introduction of our ideas to

the communication manager of Hästens, Sandsjö, whereas the other one was a more profound

discussion with the CM of the German speaking countries, Henning, we were initially aiming

to analyze three dilemmas of knowledge-sharing as presented by Dyer & Nobeoka (2000).

Due to a sudden and unforeseen lack of interest from the HQ of Hästens, we were not able to

reach a sufficient amount of data needed for a reliable result. Thus, we had to give up on the

former idea and embark on a different research topic for which enough data had been accumu-

lated.

4.2 COLLECTION OF PRIMARY

DATA

4.3 COLLECTION

OF SECONDARY

DATA

QUANTITATIVE

E-MAIL SURVEY

4.4 QUALITATIVE

METHODOLOGY (INTERVIEWS

AND ANALYSIS)

FIGURE 3. A MODEL OF THE METHODOLOGICAL PROCEDURE AS CONSTRUCTED BY THE AUTHORS


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It should be acknowledged that as a result of Wiedersheim-Paul´s (2006) lecture on

methodological approach to a research thesis, we had outlined an alternative research plan, in

case of a lack of data. In figure 3 we outline the methodological procedure for our thesis.

Given the parameters mentioned above, we have chosen to make a descriptive thesis of the

knowledge transfer within Hästens. However, we are fully aware of the fact that all presented

data may end in a normative conclusion

4.2 Collection of primary Data

A qualitative investigation method has been selected for the interviews. This is motivated by

the convenient distance to the company studied in this paper, a central prerequisite for this

method making it possible to undertake tête-à-tête interviews (Holme & Solvang 1997, pp. 14

and 93). We found it not being possible, mainly due to the extent of this paper, to achieve a

high grade of reliability/validity by embarking on a vast quantitative research.

Our first intension was to collect primary data through interviews with the HQ and one

of the CMs to get a vertical and lateral perspective. We succeeded in interviewing one repre-

sentative from both the HQ and of the CMs. We underline that such an approach to the collec-

tion of primary data has strengthen the validity, by not overestimating the importance of any

interviewee (Holme & Solvang 1997, p.94).

The second objective to gain data was through an e-mail survey. The survey’s purpose

(as can be seen in appendix 9.2) was to look into the possibilities of generalizing the informa-

tion about the knowledge transfer in Hästens, as described by Henning. In mid-December, at

the time of the halfway defence, we did, however, realize that Hästens no longer had any in-

tensions to provide us with the information necessary for a reliable quantitative research.

Eventually, we found ourselves being forced to focus on the information previously obtained

through the qualitative interviews.

4.3 Collection of Secondary Data

When it comes to collecting secondary data (e.g., articles, documents, and annual reports) it is

important to know the source behind it. Most of the documented material a researcher uses


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when writing a paper has been produced by others, and is consequently more or less influ-

enced by their point of view. Paul (1990 pp. 306-348) discusses this and concludes that it may

cause a larger impact on the results of the study than the researcher first had in mind. Every-

one is capable of making mistakes, including authors of text books and articles. Everyone

sometimes leaves out relevant information. The material used as theoretical background has

been produced by several scholars and thus it can be stated that crucial facts and essential in-

formation have been obtained, reinforcing this thesis’ reliability.

The major part of the written material for this paper was produced more than one year

ago. Hence, it might have provided us with descriptions of a reality no longer accurate today.

It should be acknowledged that when investigating the crucial differences between qualitative

and quantitative methods, most of the articles were written longer ago, as a consequence of the

tension of the debate at that time.

The collection of secondary data has been made with consideration to the targeted read-

ers of our thesis (i.e., business researchers and undergraduate business students). It has mostly

been collected through data bases such as JSTOR, Google Scholar and Emerald

4.4 Qualitative methodology

4.4.1 A Single Case Study

Regnér argues (1999, p. 59) that a research methodology is basically the content of science

and it is therefore necessary to address the research procedures explicitly. We have done a sin-

gle case study in line with one of the rationale of doing so, in regard to Yin (2002 p. 41); our

case study reflects the everyday business practice taking place in a company and captures the

everyday situation within the firm. A case study is an excellent provider of real-time data ena-

bling the researcher to track causes and effects of the subject that is to be examined (Regnér

1999, p. 68).

Although single case studies are said to be difficult to generalize from, since statistical

techniques do not apply (Kennedy 1979), we argue that it is possible to do so to a certain ex-

tent. Gummesson (2002, p. 88) claims that the meaning of generalization has become dubious;


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it is no longer obvious that a generalization can not be based on a limited case study, nor is it

clear that statistical quantitative studies can lead to more profound generalizations. The base

for a generalization from a single case study lays in the comprehensiveness of the measured

topic(s), which makes it possible to reach a fundamental understanding of the structure, proc-

ess, and driving forces of the subject matter (Normann cited Gummesson 2000, p.89). We ar-

gue that our knowledge concerning the examined questions is robust, giving us the possibility

to generalize in line with the statement above.

4.4.2 Interviews

The purpose of interviewing is to find out what is in and on someone else’s mind …to

assess the perspective of the person being interviewed. (Patton 1990, p. 278)

Before doing the interviews we outlined adequate topics (presented in appendix 9.1.2) to be

discussed in order to manage the risk of navigating the interviews in a too unambiguous and

routed way (Scheurich 1997). The main reason for doing an open-ended interview was that we

wanted the answers to come out naturally.

A qualitative interview is based upon an investigating process in which the researcher is

exercising the least control of the individuals interacting. We let the respondents influence the

way the interviews were evolving by only designing the framework for the discussion, even

though we still had to be assured to get the relevant questions answered (Holme & Solvang

1997, pp. 105-106).

In order to avoid the risk of forgetting/leaving out/misinterpreting the answers from an

interviewee, one can use a tape recorder. This was done during the last interview, which also

was the longest one. During three earlier interviews we only took notes since we (at that time)

had more in-depth interviews planned with the responders, which we were to record. How-

ever, we didn’t expect any sudden decrease of interest from the case study company. We have

been able to make use of our notes, but we are still aware of that not having transcribed those

interviews may lower the research’s reliability (Holme & Solvang 1997, pp. 290-291). We


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transcribed our interview data within twelve hours after having accomplished the interview,

aiming to make it more reliable. In addition, we have explicitly cited Henning, from the tran-

scribed interview, in order to strengthen the reliability of our case study (Yin 1981).

A qualitative research method is a time consuming form of collecting information; since

every interview should last approximately from one to three hours. We have lived up to this

requirement by staying within those limits (the longest interview lasted for approximately two

and a half hour). Having made two in-depth interviews with two employees at Hästens for our

term paper, complementing them with two new interviews with them (before the contact was

disrupted), we chose to go ahead with a qualitative analysis of those four interviews. A quali-

tative collection of primary data through interviews should be based on dialogues with less

than 20 respondents. (Holme & Solvang 1997, p. 100)

4.4.3 Interview analysis

In order to obtain a reliable result of our analysis of the answers obtained during the inter-

views, we gathered information about how to accomplish this. Kracauer (1952-1953) suggests

that a qualitative investigation method can be more fruitful than a quantitative one under cer-

tain circumstances. He claims that a qualitative analysis, by definition, differs from quantita-

tive analysis in that it achieves its breakdowns without special regard for frequencies; there-

fore we may end our thesis with a generalized conclusion built upon only four interviews.

Holme & Solvang (1997, p. 94) argue that choosing a qualitative research method gives

the researcher elasticity over the investigation that may conclude in a higher extent of validity.

On the other side, one must keep in mind the risk of letting one single person obtain a far too

big importance for the result of the investigated problem. This is something we have tried to

avoid by interviewing two key persons from different parts of a firm, at two occasions.


21

5 A Case Study of Hästens

5.1 Hästens in retrospect

5.1.1 The Expansion of the Business: From Köping…

The history of Hästens goes back to 1852 when Per Adolf Ryde received his degree in crafts-

manship. Shortly thereafter, he moved to Fellingsbro, a small village not far from Örebro in

central Sweden. Here he got married and started the manufacturing of beds. The couple had

many children and one of them was Per Thure who later was to expand the manufacture. Dur-

ing his life he managed to make a fortune which came to finance the further growth of the

company. Per Thure made this happen by following his father’s advice that one should strive

to be educated and to sense what people will demand in the future. (Hästens 2005, p. 27)

It wasn’t until the 1970s that the beds got their well-known blue and white square pat-

tern, which has been said to have a higher recognition than the Swedish flag (Sandsjö 2006-

10-05). Hästens is owned by the Ryde family and run by CEO Jan Ryde, fifth generation de-

scendant to the founder, and thus it still is a family owned business. There are no plans to be-

come a listed company (Sandsjö 2006-11-24). The most valuable competitive advantage for

the company is the fact that all beds are made from natural material, put together by the em-

ployees in a traditional way under the motto that beds for people should be made by people

(www.hastens.com 2006-12-06) Hästens has differentiated its products to this day. The beds

are still made out of pure horsehair and the manufacturing process takes place in the town of

Köping, approximately 100 miles from Stockholm, from where the beds are shipped to several

destinations over the globe. TIME (2006) ranks Hästens Vividus bed on their Luxury Index

(the products to have, the people to know, and the places to go) under the letter V, claiming it

to be the most exclusive bed in the world. However, it should be pointed out that Hästens

doesn’t sell beds – they sell the concept of Hästens, a metaphor for giving their customers the

best sleep there is. (Henning 2006-10-08)


22

5.1.2 …to Beijing

In year 1994 Hästens opened up its first store on the Dutch market. This was the first interna-

tional step for the firm outside the Nordic countries. Nowadays, the Dutch market generates

the highest sales among all markets, even outperforming the home market itself. (Sandsjö

2006-10-18) Since 2000 the total export of the business has grown from SEK 76,5” to 395”, a

yearly increase of 34,6% (Hästens 2006). This rapid expansion has been awarded by a number

of organizations, for instance by The Swedish Trade Council for Hästens’ international suc-

cess. This is also based on the fact that 71% Hästens’ turnover was generated abroad in 2005.

During the last five years Hästens has increased its export values with 335%. (Sandsjö 2006-

10-04) Today, the company is present on myriad markets (in a social, cultural and economic

point of view); such as Manhattan, Dubai, Köping and Beijing (www.hastens.com 2006).

5.2 Outlining the Organization

It should not be neglected that a firm’s organizational structure is more than a scheme of boxes

on a sheet of paper. The concept also embraces factors such as control mechanisms, incen-

tives, processes and organizational culture (Hill 2004, p. 440). Figure 4 outlines the organiza-

tional structure of Hästens in order to illustrate the levels of management in the firm.

The HQ of Hästens is located in Köping where all manufacturing, marketing plans, edu-

cational courses, logistics, customer service, product development et cetera, take place under

the same roof. All beds are shipped from the HQ all across the world and there are no plans to

move any part of the manufacturing process away from the HQ. The manufacturing area of the

HQ had to be rebuilt and expanded a few years ago in order to meet the increased demand of

foreign markets. (Sandsjö 2006-10-18)

The HQ recruits CMs on basis of their experience from that very market of which they

are to be responsible for. From this follows that Hästens exclusively employs one person on

each of its export markets4. Thus, a CM is solely in charge of running the business on his re-

4 In some cases, a CM is responsible for more than one foreign market. Henning for instance, is in charge of the expansion in Germany, Austria and Switzerland.


23

spective market and consequently he is important for the growth of the firm (Sandsjö 2006-11-

24).

EACH “BOX” (I.E., EMPLOYER/EMPLOYEE) ONLY HIRES PEOPLE FOR THE “BOX” DIRECTLY UNDERNEATH IT, AND THUS EACH “BOX” IS CONTROLLED SOLELY BY THE “BOX” DIRECTLY ABOVE IT.

The HQ’s control mechanism consists of a profit target, which also functions as the base

for the CM’s income, giving him the incentive to generate maximal revenues for the company.

It should be stressed that the HQ doesn’t interfere with the CMs concerning finan-

cial/marketing/localization aspects regarding the Hästens shops. If a certain market shows a

demand for a new Hästens store, the CM will be the one to decide whether to open up a store

or not. (Sandsjö 2006-11-24)

Climbing down one step on the ladder, we find the shop managers. The CMs hire their

own shop managers to run the Hästens shops; a shop manager can be responsible for more

than one shop. For instance, the manager of the Hästens shop in Munich is also starting up a

SHOP MANAGER

SHOP ASSISTANT

HQ

CM

FIGURE 4. A MODEL SIMPLIFIED OF THE ORGANIZATIONAL STRUCTURE OF HÄSTENS AS CONSTRUCTED BY THE AUTHORS


24

shop in Zurich. Furthermore, the shop managers employ their own staff (mainly sales people)

for “the floor”. (Henning 2006-11-30)

5.3 Knowledge Transfer in Hästens

5.3.1 Vertical Knowledge Transfer (HQ CMs)

All CMs at Hästens have a few things in common. First of all, they have some kind of bond to

their respective market, either they have grown up and/or lived there for a longer time. Sec-

ondly, they all know Swedish5. Thirdly and last, whether coming from the United States, the

Netherlands, Russia or China, they all have taken part in the very same introduction course at

the HQ – all with the purpose to learn the “know-about” of Hästens. (Henning 2006-12-01)

The introduction course has remained unchanged since it was introduced in the beginning of

the 1990s (Sandsjö 2006-10-05)

The introduction course lasts for several weeks. At the end each CM takes written tests to

verify that he has obtained the required knowledge. In other words, the CM answers questions

on what he has learned during his time at the HQ. In this way, it is confirmed that the CM has

the needed amount off knowledge about Hästens, from the view of the HQ, in order to intro-

duce the company’s concept on his market. (Sandsjö 2006-11-24)

Henning has been living in Hamburg for the major part of his life and thus Hästens as-

sumes that he possesses knowledge about the German speaking markets. He describes the in-

troduction course in this way:

The HQ provided me with product knowledge, product training and the concept, the way

they think about marketing, how the brand should be guarded, what I can say, and what I

cannot say. (Henning, 2006-12-01)

5 The CM of the British market does not speak Swedish but comprehends the language (Henning 2006-12-01).


25

According to Henning (2006-12-01), the formal introduction course provided at the HQ

could be enhanced. To the question whether the course lacked something he replied:

Of course it lacked something. If you enter a new market you see some things that Hästens

has done better and better since they started. I mean there are a lot of things that we have

developed. (…) in the last three years the concept has developed, and I have developed

tools, to present the start-up of a concept store, that I didn’t have before.

Today, there is no formal written feedback given by the CMs when it comes to evaluating

positive/negative aspects of the introduction course (Sandsjö 2006-11-24). Hästens has been

improving its concept and its way of doing business for many years. Henning sets an example

= TRANSFER OF ORGANIZATIONAL KNOWLEDGE (THROUGH THE INTRODUCTION COURSE)

by mentioning a helpful sales tool; a certain Excel sheet that CMs use to present and sell the

idea of starting up Hästens stores. It shows the major costs/benefits in a straightforward way.

This is something that wasn’t (and still is not) provided by Hästens at the introduction course.

HQ

CM CM

CM

FIGURE 5. A MODEL OF VERTICAL KNOWLEDGE TRANSFER (HQ CMs) AS CONSTRUCTED BY THE AUTHORS


26

It has been developed by Henning himself and it is now used by seven of the CMs. (Henning

2006-12-01)

Every month there is a formal meeting at the HQ in Köping which all the CMs are to be

present at, whether flying in from London or Beijing6. The upper management goes over cer-

tain topics regarding new products, quality issues, service, marketing, and checks the results

for each country. Often there is a training course (e.g., a sales course) to attend. (Henning

2006-12-01)

5.3.2 Lateral Knowledge transfer (CM CM)

As compared to the formal education provided in Köping, there are no articulated require-

ments from the HQ, or incentives directly linked to stimulate knowledge transfer among the

CMs (Henning 2006-10-05). Still, the CMs interact on a regular basis to talk about this and

that, as well as to provide each other with business related aspects. We can clarify this by once

again citing Henning (2006-12-01):

It is important for me to communicate with Claudio in Italy, Pepe in Spain, and Roger in

the US. We go over problems or issues, good things or bad things, give some feedback to

each other, give some support, and some new ways of thinking/new routes.

The lateral transfer of knowledge is illustrated in figure 6. The CMs communicate over

the phone and via e-mail on a regular basis. In addition, they occasionally visit other people

selling Hästens to learn from and to teach them new business tactics, as stated by Henning

(2006-12-01):

I organize PR-trips to share (…) information with others. So, now the Italians, the English,

the Greek people, they do the same thing.

6 Henning (2006-10-05) points out that the CMs from overseas have a higher rate of non-attendance than other CMs (e.g., the American CM on average attends 9/12 of the monthly meetings, whereas Henning himself attends more than 11/12).


27

With the knowledge obtained while visiting other markets, Henning intends to increase

the pace of establishing Hästens on the German speaking market. The goal is to do this faster

than the penetration of the Dutch market in the 1990s, and he claims to have reached this goal

in Germany. (Henning 2006-10-05)

The formal forum for face-time is at the monthly meetings at the HQ, as mentioned

above, where the CMs have the chance to share whatever is on their personal agenda.

Knowledge concerning factors such as owner structure and localization of Hästens stores

is crucial when opening new shops. Henning also mentions that markets work differently

throughout the world. Still, Hästens aim to make it possible for a customer to recognize a

Hästens store wherever it may be situated. (Henning 2006-10-05)

HQ

CM CM

CM

FIGURE 6. A MODEL OF LATERAL KNOWLEDGE TRANSFER ( CM CM) AS CONSTRUCTED BY THE AUTHORS

= TRANSFER OF INDIVIDUAL KNOWLEDGE


28

5.3.3 Vertical Knowledge Transfer (CMs HQ)

The HQ occasionally have individual meetings with the CMs at the HQ to go over sales fig-

ures and to see what they have achieved (Henning 2006-12-01). There is no formal way to

make the knowledge of a CM/the CMs an asset of the organization. As mentioned above, the

Excel sheet developed by Henning, which could be of use for all CMs when selling the idea of

starting up a Hästens shop, has not been incorporated in the organization by the HQ. More-

over, it is unclear if the other CMs are aware of its mere existence. As a result, it would not be

possible for a CM to get a hold of this Excel sheet from the HQ; he would have to get in touch

with certain a CM to make use of this knowledge (Henning 2006-12-01).

= POSSIBLE KNOWLEDGE TRANSFER

One could expect the monthly meetings at the HQ to be a tool to incorporate knowledge

from the CM and their respective markets. Sandsjö (2006-11-24) states that the HQ has no in-

tentions to obtain individual knowledge from the CMs (e.g., feedback on the introduction

course or business trends on the CMs’ respective markets).

HQ

CM CM

CM

?

FIGURE 7. A MODEL OF VERTICAL KNOWLEDGE TRANSFER (CMs HQ) AS CONSTRUCTED BY THE AUTHORS


29

Figure 7 shows the possible knowledge transfer from the CMs to the HQ. It is, however,

complex to distinguish this knowledge transfer as being either individual or organizational; it

can consist out of individual sales technique (e.g., Henning’s Excel sheet) as well as organiza-

tional data (e.g., sales figures). This is exemplified by arrows, ending without resulting in a

completed transfer of knowledge.


30

6. Analysis The knowledge transfer from the HQ to the CMs can be identified through the formal intro-

duction course. In line with how knowledge is distinguished in this paper, we see this as a

knowledge transfer consisting of organizational knowledge. We motivate this statement in re-

gard to the fact that Hästens aim to provide their CMs with the “know-about” of Hästens

through this course. The CMs learn about the products, the Hästens concept, the manufactur-

ing, marketing tactics and overall policies of the company. At the end of the introduction

course the CMs take written tests to verify what they have learned. This is a knowledge trans-

fer recalled to as [combination]; all the knowledge the CMs have been provided with at the

course is synthesized and codified as specific answers.

On a lateral level, the knowledge transfer takes place on a regular basis, mainly by inter-

action over the phone or through e-mail. Moreover, the CMs visit other foreign markets as

well as see each other at the monthly meetings at the HQ, where they share individual knowl-

edge tête-à-tête. This indicates that (as stated in section 3.2.1) individual knowledge can be ei-

ther tacit or explicit.

The CMs discuss all kinds of topics related to the business, both facts and figures, and

how to launch marketing campaigns or sell the concept of Hästens. This is a knowledge trans-

fer that could have been defined as either [socialization] or [externalization]. The [socializa-

tion] takes place when CMs interact face to face. Moreover, we have identified that CMs

transfer and receive individual knowledge, through e-mails or over the telephone, such as: is-

sues, good things or bad things, feedback, support, and some new ways of thinking and new

routes.

No pattern of [externalization] has been noticed. Nonetheless, a future [externalization]

will occur if, for instance, Henning’s sales tool (i.e., Excel sheet) would be incorporated into

the firm by the HQ and made organizational knowledge.

If a CM tells another CM about a good marketing agency, good forums for marketing

(e.g., certain glossy magazines) or how to do business in a certain country, this will not be


31

written down and stored as organizational knowledge. This knowledge stays, and in other

words resides, within the individual who it was transferred to. Even though a successful trans-

fer of knowledge has taken place it will only be of use for one person. From this follows, that

no one else will be able to use/reuse this knowledge unless personally interacting with him.

The HQ has no intention to assess this knowledge and, consequently, not make use of it to up-

date and integrate in the introduction course. Needless to say, the introduction course has been

the same for the last decade. We can also relate this to Henning’s comment on the introduction

course, saying it was lacking certain aspects.

It is subtle and hard to grasp whether there exists a vertical knowledge transfer in the di-

rection CMs to the HQ. On one hand, we can define the monthly meetings at the HQ to be a

way to transfer knowledge. Still, they seem to function more like meetings for sharing results

of the business than a way to transfer knowledge from the CMs to the HQ. In line with the pat-

terns of knowledge transfer in figure 2, we are not able to identify any occurrences of knowl-

edge transfer in this direction. Still, there may be a possibility to [externalize] individual

knowledge at the monthly meetings as the CMs meet. Moreover, there seems to be an oppor-

tunity to make use of the intense interaction occurring on a daily basis among the CMs. This

type of individual knowledge transfer is also not incorporated into the firm – it is not made or-

ganizational.

In figure 8 we illustrate and define the knowledge transfer in Hästens, in line with the

definition of knowledge and knowledge transfer in this paper. The knowledge transfer be-

tween the HQ and the CMs is one-sided as pointed out with the letter “A” in the model (taking

place through the procedure of [combination]).

There exists a formal way of transferring individual knowledge among the CMs, which

takes place at the monthly meeting at the HQ. It should be stressed that this only occurs

through the process of [socialization], whereas there are no signs of [externalization]. In addi-

tion, the CMs transfer individual knowledge among themselves on a daily basis in an informal

way as well. The knowledge transfer among the CMs is marked with a “B” in figure 8.

As demonstrated above, we could not distinguish any signs of knowledge transfer from

the CMs to the HQ, which makes the knowledge transfer within the firm imperfect. Nonethe-


32

less, we have spotted two potential ways in which individual knowledge could be transferred

and received as organizational; shown with the letters “C” and “D”.

Starting with “C”, we see the opportunity for the HQ to [externalize] individual knowl-

edge from the CMs by simply asking them for a written personal feedback on the introduction

course. This could be used to update and revise the course (pointed out as essential by Hen-

ning).

The letter “D”, symbolizes the untapped possibility of [externalizing] the knowledge that

is being transferred among the CMs – a transfer of individual knowledge that is not written

down and made organizational by the representatives from the HQ.


33

As stated in this paper, the introduction course at the HQ has been the same for many

years. During this time, the company and its surroundings, has been undergoing a variety of

changes; Hästens is present on 20 markets and the company now employs people from all over

the world. Since year 2000, it has increased its total export with 335% (a yearly rate of

34,6%). One wonders, if the introduction course at the HQ is accurate and valuable in its cur-

rent form in regard to the situation today; the configurations that has been functioning well so

far may not be accurate for the future.

HQ

CM

= VERTICAL KNOWLEDGE TRANSFER: COMBINATION = LATERAL KNOWLEDGE TRANSFER: SOCIALIZATION = POTENTIAL VERTICAL KNOWLEDGE TRANSFER THROUGH: EXTERNALIZATION

C D C

A A

B

FIGURE 8. A MODEL OF IMPERFECT TRANSFER OF KNOWLEDGE IN HÄSTENS AS CONSTRUCTED BY THE AUTHORS

CM


34

7. Conclusions Having identified the knowledge and knowledge transfer in Hästens, we have acknowledged

possibilities for the HQ to gain from the lateral knowledge transfer among the CMs. We have

come to the conclusion that this lateral knowledge transfer can be seen as an ennobling of or-

ganizational knowledge. In line with Gummesson (2000, pp. 88-89) we claim that we possess

sufficient knowledge concerning the subject matter in order to draw valid general conclusions.

Figure 9 illustrates how the ennobling of organizational knowledge occurs through the in-

teraction between a firm’s organizational “know-about” and the individual “know-how” of

managers of its subsidiary units. We see this as a procedure of knowledge ennobling, making

the organizational knowledge of a firm more up to date with current conditions on the foreign

markets.

It is a complex task for a HQ to possess knowledge of all different international markets

without the help from its subsidiary units. By generalizing, we have come to the conclusion

that there may exist an imperfect transfer of knowledge on an intra-firm basis in any MNC.

Figure 9 illustrates the existence of a loss of ennobled organizational knowledge within the

firm. We define ennobled knowledge as organizational knowledge that has been transferred

vertically from the HQ, becoming ennobled when applying it in everyday business practice, on

a lateral level, by the individuals of the firm. A loss of ennoble knowledge occurs due to the

lack of a vertical transfer of individually ennobled organizational knowledge back to the HQ.

This ennobled knowledge could provide the firm with the potential of avoiding knowledge

loss connected to employee turnover, and thus give the firm a more solid position for future

expansion.

We argue that such a loss of ennobled organizational knowledge can be costly for a firm

since, as seen in our case study, much of the organizational knowledge that is connected to a

specific foreign market can reside in solely one individual. According to us, this is crucial in

regard to the threat of loosing individual knowledge of a subsidiary manager due to him/her

leaving the company. Several researchers, e.g. Andersson (2003), have pointed out the value

of incorporating individual knowledge into the organization, making it a public asset. This


35

could provide the firm with a way to manage the risk of losing ennobled organizational

knowledge.

The consequences of a manager at a subsidiary unit leaving the firm could have multiple

negative effects. In regard to our case study, the HQ would need time to fill the hole after the

CM, indicating that there would be no firm links between the HQ and the shop managers of

the foreign market in question (as shown in figure 4). Both of them would need to rely on a

new (possibly unknown) person as the CM. The new CM would not posses the same knowl-

edge as his precursor in regard to the market (of Hästens), competitors, the needs of shop

managers et cetera.

SUBSIDIARY UNIT

ORGANIZATIONAL KNOWLEDGE

ENNOBLING OF

ORGANIZATIONAL KNOWLEDGE

LOSS OF ENNOBLED ORGANIZATIONAL

KNOWLEDGE

HQ

SUBSIDIARY UNIT

FIGURE 9. A MODEL OF IMPERFECT TRANSFER OF KNOWLEDGE WITHIN THE FIRM AS CONSTRUCTED BY THE AUTHORS


36

We further assume that it would be a time consuming process to build up, and transfer,

the lost individual knowledge. Through an [externalization] process of knowledge in a firm,

the HQ could manage the risk of loosing valuable individual knowledge. Such a procedure

should be based on routines for transferring individual knowledge to the organization; the HQ

could for example write down all topics discussed during the meetings in a document and then

send it to the subsidiary managers and store it at the HQ for future needs.


37

8. Suggestions for future research After writing this paper on knowledge and knowledge transfer we have identified new possi-

ble paths within knowledge research. It is clear that Nonaka has contributed to the concept of

knowledge within international business research. Nonaka wrote his renowned article about

the knowledge creating company in year 1991. It would be interesting to examine whether the

conversion of knowledge can take place in other new ways within the boundaries of the four

patterns. Due to the fact that business reality of today doesn’t correspond to the one 15 years

ago, we see a need for a modification of the term [socialization]. In regard to this, our case

study has shown that the process referred to as [socialization] by Nonaka, could occur without

the crucial face to face interaction. Today, people have the possibility to interact both more

personally and frequently through means such as e-mails, telephone conferences, 3G technol-

ogy, and cellular phones.

Furthermore, after having investigated several research articles on the topic of knowledge

transfer, we argue that there seem to be a research gap in regard to the vertical transfer of

knowledge. The research articles we have come across have been focusing on the vertical

transfer of knowledge in general; we would like to see it is as a more distinct two-parted as-

pect, consisting of dual direction equally important.


38

9 References

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9.2 Internet

9.2.1 Web Pages

Hästens AB’s web page, 2006. www.hastens.com, 2006-10-17. Fuller, M., Quotations page webpage, 2006. www.quotationspage.com, 2006-12-13

9.2.2 E-mails

Henning, D., ([email protected]) 2006-11-30. RE: Meeting. E-Mail to Christoffer-Mauritz Ratajczak ([email protected]). Hästens AB, 2006. Annual Report 2005. Sandsjö, E., ([email protected]) 2006-09-29. RE: Thank you. E- Mail to Christoffer-Mauritz Ratajczak ([email protected]). Regnér, P., 2007. ([email protected]) 2007-01-04. SV: Några korta frågor. E-Mail to Christoffer-Mauritz Ratajczak ([email protected]). Regnér, P., 2007. ([email protected]) 2007-01-05. SV: RE: SV: Några korta frågor. E-Mail to Christoffer-Mauritz Ratajczak ([email protected]). Sandsjö, E., ([email protected]) 2006-10-18. Inquiries. E-Mail to Christoffer-Mauritz Ratajczak ([email protected]).

9.3 Interviews

Henning, D., 2006-10-05. Nordic Light Hotel, Stockholm. Henning, D., 2006-12-01. Nordic Light Hotel, Stockholm. Sandsjö, E., 2006-10-03. HQ of Hästens AB, Köping. Sandsjö, E., 2006-11-24. Spårvagnshallarna, Stockholm.


42

9.4 Lectures

Hohenthal, J., 2006-09-28. Class notes from Knowledge Transfer in the MNC. Uppsala University. Kaptalan-Nagy, E., 2006-10-09. Class notes from MNCs and the Political Surroundings. Upp-sala University. Wiedersheim-Paul, F., 2006-11-08. Class notes from Vägfinnaren. Uppsala University.


43

10. Appendices

10.1 Appendix 1 - Interview

10.1.1 Dag Henning - Stockholm on the 1st of December 2006 - WOULD YOU PLEASE TELL US A LITTLE ABOUT YOUR BACKGROUND AND EXPERIENCES

YOU’VE HAD BEFORE STARTING AT HÄSTENS?

- Yes. I’ve lived 16 years of my life abroad. In several countries: Austria, Germany, the US

and Italy. In my work life I’ve always been working on the international market with several

international companies. Also companies from Sweden exporting mainly in and towards

Europe. That’s my strength and that’s why I am working at Hästens today.

- WHAT KIND OF COMPANIES WERE THEY?

- Several. I’ve been in the pharmaceutical industry, software business.

- ALL IN SALES?

- Yeah, all in sales and marketing. Telecom as well.

- AND ELECTROLUX?

- Yes, Electrolux.

- SO SALES AND MARKETING, RIGHT?

- Yes.


44

- IN DIFFERENT CULTURAL ASPECTS?

- I’ve been a sales and marketing manager, key account manager; I’ve had all different kinds

of position starting from lower moving up.

- WHEN DID YOU START WORKING FOR HÄSTENS?

- Two years ago.

- IN DECEMBER 2004.

- Exactly.

- HOW LONG TIME WAS IT BEFORE THE FIRST PARTNERSHIP DEAL WAS SEALED (IN GER-

MANY)?

- The first Hästens concept store, not shop-in-shop, opened in September 2005.

- WERE THERE ANY SHOP-IN-SHOPS BEFORE THAT?

- No.

- SO YOU STARTED OF BY OPENING A HÄSTENS SHOP?

- It was a concept shop in Munich in 2005.

- WHAT IS YOUR EXACT POSITION AT HÄSTENS?


45

- I am CM for Germany, Austria and Switzerland. With the later countries Switzerland and

Austria, I became responsible for these countries in August this year.

- WHICH ARE YOUR RESPONSIBILITIES/TASKS?

- My responsibility is mainly to see that Hästens will be established on these markets. I am re-

sponsible for marketing, responsible for sales and responsible for all organizational aspects

concerning Hästens in these three countries.

- DOES THE COMPANY HAVE ANY CONTROL MECHANISMS, SUCH AS PROFIT GOAL OR A SHOP

MINIMUM OR A SALES GENERATED…?

- Of course. As in all sales you have to have a goal. Last of couple of days we were setting up

sales goals and achievements. What you want to achieve and what the sales goals are. The

goals I calculate to achieve are then presented to the management at Hästens, mainly to Jan

Ryde of course, and then we all agree on the goals I present to my customers – what I want to

achieve in the markets. My customers, I mean our business partners in Germany, Austria and

Switzerland; they know exactly what I want to do. They also have a goal. They have to give

me their goals, what they want to achieve, this is a companionship a partnership. The custom-

ers, us, it’s a partnership between our business partners in Germany, Austria and Switzerland.

- CAN YOU PLEASE TELL US A LITTLE BIT ABOUT YOUR PREVIOUS WORK ON THE GERMAN

MARKET, IF YOU HAVE ANY?

- Yes, I’ve had several jobs on the German market. I’ve been working with pharmaceuticals;

for a German company that wanted to be established in Sweden. But, I also mainly afterwards

worked with Swedish companies that wanted to be established in Germany, in the telecom

business and the software business. Speaking of which, it was within the software security

business. The other one was in telecom equipment for mobile phones in cars. This is a big


46

market in Europe; you are not allowed to use mobile phones in the car. We worked with car

manufacturers, car dealers and so on.

- HAVE YOU APPLIED ANY KNOWLEDGE FROM WHAT YOU LEARNED IN THOSE ORGANIZA-

TIONS WHEN PENETRATING THE GERMAN MARKET FOR HÄSTENS?

- I used my contacts. Yes, of course I have. I am doing this all the time. In finding business

partners, in finding locations, for example when you want to establish a Hästens store in a city

in…and…let’s say Cologne. I’ve never lived in Cologne but I know German, German people

and I know how the business is made.

- EXACTLY.

- If you don’t know the city of Cologne you need to have knowledge how/where to establish a

store or in Vienna for instance. I have used my contacts to get market knowledge for the local-

ization of the shops.

- WHAT IS THE MOST IMPORTANT KNOWLEDGE INITIALLY NEEDED WHEN PENETRATING A

FOREIGN MARKET WORKING FOR HÄSTENS? IS A KIND OF MARKET KNOWLEDGE, OR IS IT

FIRM KNOWLEDGE OR INSTITUTIONAL KNOWLEDGE…?

- I think to penetrate the market you need both. It is a little bit of everything actually. If you

enter a new market you have to…of course to know what Hästens stands for. I mean you have

to believe in what you do. Then of course how you apply the knowledge of Hästens into a new

market, then it’s your job or my job to do it in a way so that the business culture understands

the way the Swedes are thinking – but applied in a German way. Let’s say it like this: I am not

talking about the German way in terms of administration bureaucracy, I am talking

about…you cannot do business the Swedish way in Germany or the German way in Sweden;

you have to find a sort of parameters that you…you…have…


47

- …HAVE IN COMMON OR?

- Yes, that you have in common. This is what I think is the strength of Hästens. Every CM has

a connection to the country where he/she is working. For instance, the guy working for

Hästens in Italy is half Italian, the guy working for the Netherlands is half Dutch, the guy in

Spain is Spanish and lives in Spain and I am half German. The guy in Russia is Russian. The

guy in America is American. But everybody speak Swedish also.

- OH, THEY DO?

- Yeah, and the other language is the language of the country so you understand both cultures.

I mean you probably grew with it; you went to school in Germany, or Austria, or the US, or It-

aly or Spain. So you know the cultural differences.

- IS IT MORE IMPORTANT TO KNOW THE MARKET AND THE COUNTRY?

- Yes.

- CAN YOU LEARN THE CONCEPT OF HÄSTENS?

- Yes.

-…BUT YOU CAN’T REALLY STUDY THE MARKET FROM A THIRD PERSPECTIVE?

- No, you cannot. I think it would be very difficult if you just have a guy from somewhere in

Sweden that might know Hästens, he might even know the concept, but he doesn’t know

Germany, or Italy or Spain and he goes down to Germany and try to sell Hästens. He has

never worked internationally or dealt with Germans and is trying to speak English with Ger-

mans. Or trying to speak English with the French or Italians. Then you have a problem. You

don’t understand their way of thinking. So it is very important that the guy, or the lady, works


48

with the country she has to have a cultural knowledge of… She has to know the language.

Have some kind of personal experience, maybe lived in the country, and knows the people and

how to speak to them. I mean in Sweden you say…you always say, DU but in Germany you

say SIE.

- EXACTLY.

- I mean, if you go to say DU instead of SIE to a German then you’ve come very far. Then you

have a very good relationship.

- REALLY ON THE SAME LEVEL.

- Exactly. But it is still a matter of respect. More respect there than in Sweden. (…) We have

different cultures when eating, when we talk to each other, how to communicate, how we do

business, how to decide or make decisions and how we present our selves (…)

- FOR YOU IT IS A MIX OF BOTH FIRM AND MARKET KNOWLEDGE?

- Yes. One cannot live without the other.

- WHICH TYPE OF KNOWLEDGE DID HÄSTENS PROVIDE YOU WITH AT THE INTRODUCTION

COURSE?

- They provided me with product knowledge, product training and the concept, the way they

are thinking in marketing, how the brand should be guarded, what I can say, what I cannot say.

For instance co-marketing is… we don’t do co-marketing, we cannot work with Franz Beck-

enbauer and show him on a bed, and it’s not Hästens’ policy. We learn how to present

Hästens. The other part, the knowledge of the market, how to establish Hästens is up to me.


49

- WHAT ABOUT SALES TECHNIQUES AND SALES ARGUMENTS?

- Of course you learn sales arguments. You learn that with every product. I mean if you don’t

have a sales experience, or some sort of social experience, than you would not be able to sell

Hästens in Germany…

- … AND THAT IS PROBABLY REQUIRED FIRST OF ALL?

- Yes of course. I mean, you cannot be, with all respect to you guys but you’re 22 years old

and you want to be selling in Germany it would be difficult to find a job. But it’s not difficult

to get an assistant job in Germany, but as responsible for a market they require an experience.

- WHICH IS LOGICAL.

- Yes.

- DID YOU THINK THAT THE KNOWLEDGE PROVIDED BY HÄSTENS WAS SUFFICIENT OR DID IT

LACK SOMETHING?

- Of course it lacked something. If you enter a new market you see some things that Hästens

has done better and better since they started. I mean there are a lot of things that we have de-

veloped. I mean for instance (…) because we are now opening up Hästens stores in Germany

and all over Europe, we have already stopped selling to furniture stores, Hästens beds, which

is out now. We are just doing shop-in-shops and Hästens stores. (…) And we see that in the

last three years the concept has developed, and I have developed tools, to present the start-up

of a concept store, that I didn’t have before. So this is something that I was not provided by

Hästens. It’s something that I’ve developed myself.


50

- WHERE DID YOU ACQUIRE THE KNOWLEDGE NOT PROVIDED BY THE HQ DURING THE IN-

TRODUCTION COURSE?

- I talked to the management, to the sales director, to the marketing director at the HQ. And

also to other CMs. We all have a good forum. We see each other once a month for two-three

days.

- ARE THEY FORMAL MEETINGS?

- Yes. It is a booked meeting at the HQ. We share our knowledge, and we share what we have

done good or bad in each country. And we pick up each other’s good ideas; we learn from

each other. I mean, for instance, the calculation for a new Hästens store, which I developed in

a math Excel-sheet that I presented now seven or eight countries are implementing it in their

market. They got my help, I outlined it, but then they individually adjusted it for their markets.

So we share, everybody is sharing, their knowledge with each other. I mean it’s no competi-

tion. It helps, I mean, it helps Italians if I open up a shop in Switzerland, or Austrian, or in

Germany, because they might say “oh, look it works in Switzerland, maybe I should open a

store here?” or vice versa. If you can tell the Germans that we have stores in Italy, and Spain,

and Austria, the Germans might than say “oh, it seems to work, why shouldn’t in work in Ger-

many?”

- SO THE ONLY FORMAL WAY OF REGULATION/GUIDANCE FOR THESE MEETINGS IS TO GET

TOGETHER, AND THEN IT IS MORE OR LESS FREE TO DISCUSS WHAT YOU WANT TO?

- No, it is a structured meeting. We go through what Hästens wants, new products or quality

issues, service, new marketing forum or we look on the results for each country. New things.

Everything, but there is always an agenda which we go through.

- WHAT IF THERE WOULDN’T BE A FORMAL MEETING, WOULD IT STILL BE THE SAME WAY OF

COMMUNICATING, OR IS THE MEETING NECESSARY ITSELF?


51

- Of course, we always communicate through Skype, through e-mail or through the phone. It is

psychologically very important to me that we share things.

- SO YOU ARE WORKING AS A TEAM?

- It is important for me to communicate with Claudio in Italy, Pepe in Spain, Roger in the US

to go over problems or issues, good things or bad thing, give some feedback to each other,

some support, and some new ways of thinking/new routes. It’s always teambuilding. It’s very

important. I have never worked for a company in my life with a team spirit as strong as in

Hästens. Never. I can say never.

- WHAT IS DISCUSSED AT THE CM MEETING?

- Information from each country, how it’s going, latest news, success stories, service issues,

product problems, marketing platforms…everything. Maybe the CEO wants to say something

about the future. It can also be pair training, sales training; we have a lot of training at

Hästens.

- DO YOU INTERACT WITH THE HQ ON OTHER OCCASIONS THAN DURING THE MONTHLY

MEETING?

- (…) we have individual meetings with the sales director and the CEO where we go through

my figures of sales and what I have achieved.

- HAVE YOU EVER SOLVED A PROBLEM THAT APPEARED ON YOUR MARKET BY APPLYING

KNOWLEDGE AND EXPERIENCE FROM A DIFFERENT MARKET?


52

- I’ve never gotten help from another CM to close a business deal or solve a problem. Of

course, if I sell my first bed or so, then I need to some product knowledge so I call up a sales

guy. I remember the first bed I sold in Munich to a Swiss guy. I called up a sales guy in the

Netherlands and said: listen I have a customer here, he looks like this, he wants this and he has

these problems. What do you recommend? Of course, you share information with each other.

That is maybe in a sales way but not in a strategic way. Regarding closing deals and so on, in

which you work with a big investment group that is opening up hundreds of shops in Ger-

many. In that case I have to contact the sales director who has to attend the meetings with the

investment group. It is actually important because they need some sort of assurance from

Hästens and they want to know how things work and there might be things that I can’t decide

myself. It is for instance contracts. I mean I have a contract agreement which I send to my

business partners but then if they want to do some changes in it I am not entitled to say ok. I

have to get my sales director in.

- CAN ONE SAY THAT, AT THE BEGINNING WHEN YOU STARTED THE PENETRATION OF THE

GERMAN MARKET, YOU GOT HELP FROM THE OTHER CMS TO A LARGER EXTENT COMPARED

TO TODAY?

- Exactly. When you start a new job you always have to ask: how did you do in your market?

What is important to think of? Learn about the competition. You have to learn from others.

- IF YOU WOULD HAVE ASKED THE CM OF THE NETHERLANDS, FOR EXAMPLE, THEN IT

WOULD HAVE TO BE SOME KIND OF KNOWLEDGE, A GENERAL KIND, SOMETHING THAT HE

WOULD THINK WOULD BE OF USE IN THE GERMAN MARKET?

- They ordinary daily work, I’ve been calling up and asked if you do an event in Germany and

I know that in Holland they did a very good event and for instance this billionaire trade fair.

So I can call up: Hey Bjorn, how did you do the trade fair, what material did you use, how did

you present yourself, how was the stand and so on. Of course I get some information from


53

him. So it’s…in that case it happens. Now, they call me and I start of working with a PR-

agency locally, in Germany, Austria or Switzerland, which is helping me to set up a media

plan, to help the stores with PR and media, and see that all the stores together and the whole

German speaking market, work together put ads in glossy magazines. If you go to Germany

now you can buy four or five glossy magazines, we’re talking about Schöne Wohnen et cetera,

all this interior decoration magazines and you find a Hästens ad or an article about Hästens in

it. And this has worked very well. I pay a small fee each month and so the Spanish and Italian

say: Dag how do you do this? I organize PR-trips to share this information with others. So,

now the Italians, the English, the Greek people, they do the same thing. You see, you always

keep your eyes open and listen to what the others do. If it works in Italy why couldn’t it work

in Germany? We always share each others good ideas.

- IF YOU CAN TELL THAT IS WORKING IN YOUR MARKET, AND HE WOULD PROBABLY HAVE

THE KNOWLEDGE TO REALIZE IF IT IS ABLE TO APPLY, AND MAYBE HE CAN CUSTOMIZE IT

FOR HIS OWN MARKET...?

- This is what we do at a marketing meeting. This is something that should be presented at

those meetings. Last three days in Köping we presented our media plan, strategy and so on.

They ask how much did it cost, how did you do this, and now three to four other countries

have the same thing.

- DO YOU SPEAK SWEDISH AT THE MEETINGS?

- Everybody knows Swedish (...).

- BEFORE BEGINNING AT THE GERMAN MARKET, DID YOU HAVE SOME TRAINING COURSES,

DID YOU VISIT OTHER MARKETS?


54

- I was supposed to go to the Netherlands, but I didn’t. I did not visit other markets. The plan

was that I should go and do that. It is a good idea to do so. You should do that but I didn’t.

- IS IT COMMON TO DO THAT TODAY?

- Well, I think it was common before. But because we’re growing that fast we don’t have the

time usually. Therefore it is very important to have a person with experience and self confi-

dence. Who says: Ok, I can do this anyway. It is up to you to decide. If you need to go to the

Netherlands you do that. The plan was actually to go to the Netherlands for two or three weeks

to look around. I‘ve never done it.

- DO YOU HAVE ANY CONTACT WITH OTHER CMS?

- Yes. All the CMs talk to each other every day. I speak to the Italian, the French. Tomorrow I

will talk to Bjorn, the Dutch guy; I mean we talk to each other every day. At least several

times week.

- SO THERE MUST BE SOMETHING YOU’RE SHARING?

- Sometimes it’s just chitchat. You just talk to each other. Because you are yourself and you

are travelling a lot. If you are in the airport, or sitting with customer or your just bored and

need somebody to talk to. It is very inspiring. We support and help each other. As a friend or

colleague.

- YOU ARE THE CM OF GERMANY AND YOU HAVE THE RESPONSIBILITY FOR THE SWISS

MARKET.

- Switzerland and Austria.


55

- WHAT IF YOU ARE ABOUT TO OPEN UP A SHOP IN LUGANO FOR EXAMPLE?

- Yes. I would love that.

- WOULD YOU THEN NEED HELP FROM THE ITALIAN CM, BECAUSE HE KNOWS MORE ABOUT

ITALIAN PEOPLE AND THEIR DEMANDS?

- Of course. It is always (…) Claudio and I (…) I also speak Italian. I have also lived in Italy.

We help each other. I know…I mean I wouldn’t open up a store in Lugano without telling him

because I know he has customers in Como, which is very close to Lugano. So you have to al-

ways be informed. In that case, actually we talked about it two days ago, we’re going to coop-

erate. The guy in Como, at the store in Como, would like to open up a shop in Lugano. He is

open to do that, but we will help him together.

- IS IT THE SAME WHEN OPENING UP A SHOP IN GENEVA?

- Yes.

- WOULD YOU THEN NEED HELP FROM THE FRENCH CM?

- Maybe. If the customer only speaks French and I don’t speak French so then I would take

some help from the French CM, or vice versa. I mean this has happened.

- SO THERE YOU CAN SEE HOW YOU GENERALIZE MARKET KNOWLEDGE, BECAUSE YOU TAKE

MARKET KNOWLEDGE FROM THE FRENCH MARKET TO GENEVA, YOU TAKE ITALIAN MAR-

KET KNOWLEDGE TO LUGANO AND THE GERMAN MARKET KNOWLEDGE TO SCHAFFHAUSEN.

- Yes of course. Switzerland is a very special country. You have four languages. I speak Ital-

ian but I don’t speak French. It helps of course if you are in Geneva and the guy doesn’t speak


56

German. Really, most Swiss people can speak three languages (…) if you are in Zurich and go

by train for two hours to Geneva the buildings look different, people are different, it is differ-

ent food, and then if you go to Lugano it is also different. I mean, Lugano is very close to It-

aly. I mean it’s 40 minutes by train to Milan. I would definitely talk help from my Italian col-

league. I have to because I don’t want to spoil his business relationship with the guy in Como.

In this case we know that Italians are interested to open up in Lugano.

- THAT WAS EVERYTHING. THANK YOU VERY MUCH.


57

10.1.2 Interview topics

• Organizational structure • The concept of Hästens

• The education in the company

• The importance of the monthly meetings

• Dealing with success/failures

• Internal communication • Internal communication among CMs

• Individual knowledge and organizational knowledge


58

10.2 Appendix 2 - Unused E-mail Survey

INTRODUCTION TO E-MAIL SURVEY

After having written a term paper about Hästens for a course in Management of International Business

(10 credits) at Uppsala University earlier this year, in which we discussed the impact of knowledge

management on the internationalization process, we became more interested in the knowledge transfer

within the firm.

With this inquiry we aim to survey the coordination of knowledge transfer, and what type of

knowledge that mainly is transferred within Hästens. In our thesis we make a distinction between tacit

knowledge; knowledge that can only be acquired/transferred through observation, imitation or sociali-

zation (e.g., how to sell a Hästens bed on a certain country market) and explicit knowledge which is

easily acquired/transferred through combination of different earlier experiences (e.g., product charac-

teristics and the concept of Hästens). Explicit knowledge is easily codified into documents and such.

Our thesis will result in a description of the knowledge transfer and its impact within Hästens.

Please answer this brief survey by typing Your answers in this document. We are looking for-

ward to receive your answers by 20th of December at: [email protected].

All the replies will be handled strictly confidential.

THANK YOU FOR YOUR PARTICIPATION.

HAPPY HOLIDAYS!


59

SURVEY

- WHEN DID YOU START WORKING FOR HÄSTENS? MM/YYYY - WERE YOU BORN OR DID YOU LIVE FOR MORE THAN FIVES YEARS IN THE COUNTRY WHERE YOU HAVE YOUR CURRENT POSITION AT HÄSTENS? (PLEASE ANSWER WITH YES OR NO) - ESTIMATE YOUR CAPABILITY IN SPEAKING AND UNDERSTANDING SPOKEN SWEDISH (PLEASE ANSWER WITH 10 POINT LIKERT SCALE FROM 0 TO 10; 0 MEANING NOT UNDER-STANDING ANY SWEDISH AND 10 CORRESPONDING TO KNOWLEDGE OF NATIVE SPEAKERS). - ESTIMATE YOUR CAPABILITY IN READING AND WRITING IN SWEDISH (PLEASE ANSWER WITH 10 POINT LIKERT SCALE, FROM 0 TO 10; 0 MEANING NOT UNDERSTANDING ANY SWED-ISH AND 10 CORRESPONDING TO KNOWLEDGE OF NATIVE SPEAKERS). - HOW MANY EMPLOYEES (SHOP MANAGERS) ARE WORKING FOR YOU? - HAD YOU BEEN WORKING IN THAT COUNTRY FOR MORE THAN ONE YEAR BEFORE WORK-ING FOR HÄSTENS? (PLEASE ANSWER WITH YES OR NO.)


60

- IF THE ANSWER IS YES, PLEASE SPECIFY WHAT TYPE OF KNOWLEDGE GAINED FROM PRE-VIOUS MARKET EXPERIENCES IN YOUR CURRENT MANAGING COUNTRY, HAS BEEN OF GREATEST IMPORTANCE TO YOU, WHEN STARTING UP HÄSTENS’ BUSINESS IN THAT MARKET. (PLEASE MARK THE MOST IMPORTANT TYPE OF KNOWLEDGE BY WRITING THIS UNDER-NEATH THE BOX CORRESPONDING TO YOUR ANSWER) - WOULD YOU PLEASE SPECIFY WHAT KNOWLEDGE YOU RECEIVED, DURING THE INTRODUC-TION COURSE AT THE HEAD QUARTER? (PLEASE MARK THE MOST IMPORTANT TYPE OF KNOWLEDGE BY WRITING THIS ONE UNDERNEATH THE BOX CORRESPONDING TO YOUR ANSWER) - WOULD YOU SAY THAT THE INTRODUCTION COURSE AT THE HEAD QUARTER PROVIDED YOU WITH A SUFFICIENT KNOWLEDGE IN REGARD TO STARTING UP HÄSTENS’ BUSINESS ON A NEW MARKET? (PLEASE ANSWER WITH YES OR NO.)

TACIT

KNOWLEDGE

EXPLICIT KNOWLEDGE

(KNOWING HOW, SUCH AS HOW TO OPERATE IN A CERTAIN COUNTRY MARKET)

(KNOWING ABOUT, SUCH AS PRODUCT CHARACTER-ISTICS)

(KNOWING HOW, SUCH AS HOW TO OPERATE IN A CERTAIN COUNTRY MARKET)

(KNOWING ABOUT, SUCH AS PRODUCT CHARACTER-ISTICS)

TACIT

KNOWLEDGE

EXPLICIT KNOWLEDGE


61

- IF THE ANSWER IS NO, PLEASE SPECIFY SHORTLY THE KNOWLEDGE YOU WOULD SAY WAS MISSING DURING THE INTRODUCTION COURSE. - GRADE THE IMPORTANCE OF THE MONTHLY MEETINGS OF THE CMS, WHEN IT COMES TO SHARING KNOWLEDGE AND LEARNING FROM EACH OTHER (PLEASE ANSWER WITH 10 POINT LIKERT SCALE, FROM 0 TO 10; 0 MEANING NOT BEING IMPORTANT AT ALL AND 10 CORRE-SPONDING TO A CRUCIAL IMPORTANCE). - WOULD YOU CLAIM THAT THERE EXISTS A STRONG TEAM-SPIRIT AT HÄSTENS? (PLEASE ANSWER WITH A YES OR A NO) - HAVE YOU GOTTEN ANY HELP FROM OTHER CMS WHEN STARTING UP HÄSTENS’ BUSINESS ON A NEW MARKET? (PLEASE ANSWER WITH A YES OR A NO.) - IF THE ANSWER IS YES, PLEASE SPECIFY SHORTLY THE KNOWLEDGE YOU RECEIVED FROM OTHER CMS.


62

- WHICH INCENTIVES HAVE AN IMPACT ON YOU WHEN IT COMES TO SHARING KNOWLEDGE WITH OTHER CMS AT HÄSTENS? (PLEASE WRITE YES OR NO UNDER EACH BOX. WE ARE LOOKING FORWARD TO RECEIVE SUGGESTIONS FOR OTHER TYPES OF INCENTIVES.) SHARING YOUR

KNOWLEDGE IM-PROVES YOUR

SALES

RECOGNITION FROM CO-WORKERS

RECOGNITION FROM HEAD

QUARTER

SHARING KNOWL-EDGE IS FA-

VOURED FOR PROMOTION

OTHER (PLEASE SPECIFY)


63

- WHICH INCENTIVES HAVE AN IMPACT ON YOU WHEN IT COMES TO SHARING KNOWLEDGE WITH THE HEAD QUARTER AT HÄSTENS? (PLEASE WRITE YES OR NO UNDER EACH BOX. WE ARE LOOKING FORWARD TO RECEIVE SUGGESTIONS FOR OTHER TYPES OF INCENTIVES.)

SHARING YOUR

KNOWLEDGE IM-PROVES YOUR

SALES

RECOGNITION FROM CO-WORKERS

RECOGNITION FROM HEAD

QUARTER

SHARING KNOWLEDGE IS FAVOURED FOR

PROMOTION

OTHER (PLEASE SPECIFY)


64

10.3 Appendix 3 - The Foreign Markets (in alphabetical order)

Andorra

Austria

Belgium

China (Hong Kong included)

Cyprus

Czech Republic

Denmark

Finland

France

Germany

Greece

Iceland

Italy

Lebanon

Norway

Spain

Switzerland (Shop opens in 2007)

The Netherlands

The UAE

The United Kingdom

The United States

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