The impacts of organizational culture on knowledge transferring in FDI enterprises in Vietnam

Abstract

Objective of the study: Knowledge transferring through Foreign Direct Investment (FDI) enterprises is a strategic policy for the economic development of many countries. However, in the case of Vietnam, the effectiveness of knowledge transfer in FDI enterprises is not clear, especially with the impact of cultural distance between foreign investors and local employees. The main goal of this study is to explore the impact of organizational culture on knowledge transferring in FDI enterprises in Vietnam.Methodology/approach: Based on the original model of Parissa (2003), a research model has been proposed, in which the organizational cultural factors include cultural background, language ability, perceived cultural distance, learning style, and cultural openness. Quantitative research conducted through surveys with 109 respondents, who are working in FDI businesses in Ho Chi Minh City, Vietnam.Originality/Relevance: This research focuses on the direct impact of cultural factors on knowledge transfer at individual level between foreign managers and local employees in Vietnam.Main results: Analytical results showed that three factors had a significant impact on the effectiveness of knowledge transfer, including Cultural openness, Language ability of foreign managers, and Communication distance. Theoretical/methodological contributions: The study helps to test the measurement scales and contributes an empirical study in this field.Social/management contributions: From these results, some managerial suggestions were made to support knowledge transferring between foreign managers and Vietnamese employees.