Cultural antecedents and performance consequences of open communication and knowledge transfer in multicultural process-innovation teams

Abstract

Processes in multinational corporations (MNCs) have to be configured with regard to the challenges of a permanently evolving environment. Process-innovation teams are considered to be powerful tools inside organizations to cope with this necessity. Their performance is of major importance for most MNCs. As a response to the increasing internationalization and globalization of markets, these teams show a growing culturally diverse composition. This article focuses on two major processes that are discussed to decide about a positive or a negative performance of a team: intra-team communication style and knowledge transfer. Explicitly, this article (1) tests for the influence of cultural diversity on intra-team communication and knowledge transfer, and (2) empirically examines the impact of the openness of intra-team communication and knowledge transfer on the performance of multicultural teams. A quantitative empirical survey among 84 team-members of 20 culturally diverse teams within a German sportswear company is used to test the relationships. Findings reveal that national cultural diversity has no significant impact on intra-team communication and knowledge transfer but both of them have significant influences on different measures of performance.