The Impact of Trust on Knowledge Transfer in International Business Systems

Abstract

Over the last decade, international business alliances have emerged as one of the most important strategies for firms to expand in international markets. In addition, knowledge transfer has been determined as one of the key factors that lead to the creation of sustainable competitive advantage for firms and to the success of learning alliances. Furthermore, trust enhances the effectiveness of this process. The growing volume of published research in recent years has indubitably revealed the significant role of trust on knowledge transfer in International Business (IB) Systems and in particular in International Strategic Alliances (ISAs) and International Joint Ventures (IJVs). This paper consists of an in depth review of the most recent literature about the impact of trust on transfer of various types of knowledge in IB Systems with reference to the relevant theoretical models and the applications in the international context. The first section contains the theoretical background of the concept of trust, the different types of knowledge and the process of knowledge transfer. The main section refers to a few contemporary and distinguished scientific articles about the impact of trust as a determinant factor of knowledge transfer from the most recent international literature. The conclusions of the literature review and testable propositions related to the creation of trust among IJV partners and their impact on knowledge transfer are presented at the final section of the paper.