Overview
In today’s globalised business environment, multinational enterprises (MNEs) increasingly rely on expatriates to facilitate knowledge transfer across different locations. However, understanding the factors influencing expatriates’ tendency to hide knowledge is crucial for organisational effectiveness. This literature review explores the concept of knowledge, types of knowledge, expatriates (assigned and self-initiated), their role in knowledge transfer, and the antecedents and consequences of knowledge hiding, particularly in the context of workforce localisation policies, such as Saudization.
Understanding the Concept of Knowledge and Expatriates
Knowledge typifies a vast realm comprising diverse definitions and forms, representing a tapestry of interconnected concepts, factual data, and the intricate web of patterns and structures. Despite the many definitions, knowledge, in its essence, encompasses a fusion of information, skills, and experiences that individuals possess and employ to interpret and comprehend the world around them, serving as a foundation for decision-making, problem-solving, and innovation within organisations (Sun & Hong, 2022). There is a remarkable consensus among scholars that knowledge can be broadly categorised into two types: explicit and tacit. According to Zagzebski (2017), explicit knowledge refers to formalised information that can be easily expressed, articulated, and codified, including tangible assets such as manuals, procedures, databases, and other documented resources. Explicit knowledge is readily transferable and can be quickly disseminated across organisational boundaries. Conversely, tacit knowledge is personal, context-specific, and deeply embedded in an individual’s skills, intuition, and beliefs (Zagzebski, 2017). It is acquired through practical experience, often through trial and error, and encompasses insights, expertise, and know-how that is challenging to articulate explicitly. Implicit knowledge is precious but requires personal interaction and experience-sharing for effective transfer. Overall, these different types of knowledge inform the impacts of expatriates in various sectors, implying that the transfer of knowledge of any kind shapes their interaction with stakeholders and nurtures the experiences of their hosts.
Expatriates, assigned and self-initiated, play a pivotal role in the transfer of knowledge within MNEs. Andresen et al. (2014) define assigned expatriates as employees selected by their home country organisation and deployed to work in a foreign subsidiary. These individuals are chosen based on their expertise, knowledge, and skills, and they assume the responsibility of transferring knowledge from the headquarters to the subsidiary. Further, they act as conduits for knowledge dissemination and bridging the gap between different organisational units (Andresen et al., 2014). On the other hand, self-initiated expatriates are individuals who proactively seek international work assignments by voluntarily moving to a foreign country to pursue career opportunities (Suutari et al., 2019). Consequently, they are highly motivated, autonomous, and culturally adaptable. Self-initiated expatriates bring their distinct experiences, expertise, and perspectives, vital factors that can influence organisational learning and knowledge transfer in various ways (Harzing et al., 2016). Their eagerness to take on new challenges and actively engage in the process of information exchange is shown in their voluntary participation. Regardless of their assignment, expatriates are essential agents for knowledge transfer within MNEs. Expatriates are endowed with a mixture of tacit and explicit knowledge that may be shared and incorporated throughout various organisational divisions. They facilitate efficient knowledge distribution, create cooperation, and advance organisational learning by utilising their experience and cultural adaptability. Hence, expatriates’ varied experiences and backgrounds improve the dissemination of tacit and explicit information, enhancing the organisation’s overall knowledge capital.
The Role of Expatriates in Knowledge Transfer
Expatriates are at the vanguard of promoting knowledge transfer, which is still essential to global organisations. According to Choi and Johanson (2012), knowledge transfer is the process by which organisations and individuals share, acquire, and utilise information within and outside organisational boundaries. Knowledge transmission drives multinational firms’ competitiveness, organisational excellence, and inventiveness. Expatriates are crucial in building bridges that connect the organisation’s headquarters with its subsidiaries. Thanks to their presence and knowledge, they are essential in conveying explicit and tacit knowledge amongst various organisational units. Expatriates use a variety of techniques and strategies to aid in the transmission of knowledge. Fang and his colleagues identified socialising as one of these strategies in their 2010 study, in which expatriates participate in interpersonal interactions, build relationships, and create chances for information sharing. They assist in transferring tacit knowledge with a strong foundation in the local context by integrating themselves into the local culture and creating connections with employees in subsidiary units.
Expat-run training initiatives are an essential resource for knowledge transfer. Through these initiatives, they communicate their knowledge, abilities, and best practices to staff members in subsidiary units, assisting them in learning new information and developing their skills (Sun & Hong, 2022). Expatriates ensure that critical knowledge is shared and effectively used throughout the organisation by creating and conducting practical training projects. Another way that ex-pats contribute to knowledge transfer is through mentoring. They share their expertise and insights with local personnel and offer advice, assistance, and mentorship (Choi & Johanson, 2012). Through this mentoring relationship, tacit knowledge can be shared as expatriates teach staff important lessons they have learned and guide them through challenging work conditions.
Studies show that the collaborative networks affiliated with expatriates also play a substantial role in knowledge transfer. Expatriates connect people from various units through their networks, allowing the exchange of knowledge and best practices (Sun & Hong, 2022). Expatriates promote the exchange of explicit information, supporting innovation and continual learning inside the organisation by actively participating in collaborative projects. According to Suutari and Brewster (2000), the ability of expatriates to navigate cultural differences, language barriers, and contextual nuances is instrumental in effective knowledge sharing and dissemination across geographically dispersed units. They are cultural ambassadors, facilitating cross-cultural communication and understanding (Fang et al., 2010). Bridging these gaps ensures that knowledge flows seamlessly between headquarters and subsidiary units, enhancing organisational learning and performance.
Antecedence and Consequence of Knowledge Hiding
Knowledge hiding (the deliberate act of employees withholding or concealing knowledge from others within the organisation) has garnered significant attention in research due to its potential negative impact on knowledge transfer processes. Thus, understanding the factors contributing to knowledge hiding is crucial for effectively managing and promoting knowledge sharing within organisations, especially MNEs. Scholars have identified an array of crucial antecedents of knowledge hiding, including organisational culture, job security and lack of incentives or recognition (Stoermer et al., 2021). There is ample evidence that organisational culture is pivotal in shaping employees’ behaviours and attitudes towards knowledge sharing. For instance, a study by Connelly et al. (2012) found that a competitive work environment was positively associated with employee knowledge-hiding behaviour. In effect, a culture that fosters individual competition, emphasises knowledge hoarding or lacks trust among employees is more likely to create an environment conducive to knowledge hiding.
Contemporary studies further point out that job insecurity, whether real or perceived, can act as a significant driver for knowledge hiding. When employees experience a sense of threat to their job security, they may hide knowledge as a form of self-preservation. One of the most recent studies carried out by Wu et al. (2023) demonstrates a positive relationship between job insecurity and knowledge-hiding behaviours. The inference for this is that employees resort to hiding knowledge to safeguard their positions within the organisation. Other studies show that the absence of appropriate incentives or recognition for knowledge sharing can also contribute to knowledge hiding. For example, in their 2020 study, Arain and colleagues observed that a lack of recognition for knowledge sharing was negatively associated with knowledge-sharing behaviour, indicating that employees may resort to knowledge hiding to respond to this deficiency. Thus, employees may be less motivated to openly share knowledge if their contributions and efforts are undervalued or overlooked by the organisation.
Consequences of Knowledge Hiding
The antecedents and consequences of knowledge hiding have been extensively studied in the literature. According to researchers, the consequences of knowledge hiding are complex. Further, they can harm organisations, including erosion of trust and collaboration, impaired knowledge transfer, and loss of competitive advantage. First and foremost, knowledge hiding obstructs the flow of knowledge within the organisation, leading to reduced innovation, lower productivity, missed opportunities, and inefficiencies in decision-making processes. For instance, a study by Connelly et al. (2012) found that knowledge hiding negatively affected knowledge sharing among employees, hindering the transfer of valuable information and expertise. Other studies show that knowledge hiding undermines trust and collaboration among employees. When individuals perceive that their colleagues are intentionally withholding knowledge, it erodes trust and creates a competitive rather than cooperative work environment (Harzing et al., 2016). The aspect can have detrimental effects on team dynamics and overall organisational performance. Research conducted by Suutari et al. (2018) demonstrated a negative relationship between knowledge hiding and trust, highlighting the detrimental impact on collaborative efforts. Lastly, studies show that knowledge hiding can result in a loss of competitive advantage for organisations. Wu et al. (2023) found a negative relationship between knowledge hiding and organisational performance, suggesting that organisations that fail to address it may lose their competitive edge in the marketplace. When valuable knowledge remains hidden and is not effectively shared, organisations miss opportunities for innovation, strategic decision-making, and leveraging internal expertise.
Workforce Localization and Knowledge Hiding
Based on the workforce localisation strategy (Saudization policy), antecedence and knowledge hiding shape the scope of expatriation and its relevance in the development of entities. Over the past few years, governments and organisations have implemented workforce localisation policies, including Saudization in Saudi Arabia, to increase the employment of local citizens in critical positions within MNEs (Alanezi et al., 2023). These policies have the potential to impact the dynamics of knowledge transfer significantly and may give rise to knowledge-hiding behaviours. Exploring the relationship between workforce localisation policies and knowledge hiding is essential for effectively managing knowledge transfer in these contexts. Suutari et al. (2018) note that workforce localisation might lead to difficulties between expatriates and local employees. According to one recent study on the consequences of localisation policies in the Middle East, the process resulted in power struggles and disputes between expatriates and locals (Arain et al., 2020). These tensions can lead to knowledge-hiding behaviours, in which expatriates withhold valuable knowledge from local employees due to job security concerns, loss of power, or a competitive spirit. Furthermore, Harzing et al. (2016) investigated the impact of localisation on knowledge transmission inside MNEs. The results of this study showed that localisation strategies could obstruct the exchange of information among local employees and between ex-pats and locals. In essence, this disruption can foster a culture of knowledge hiding, where people may be reluctant to share their expertise to preserve their perceived advantage or defend their standing within the company.
References
Alanezi, A., Darwish, T. K., Singh, S., &Miroux, A. (2020). Substituting ex-pats with locals: TNCs and the indigenisation policies of Saudi Arabia. Transnational Corporations Journal, 27(1). https://unctad.org/system/files/official-document/diaeia2020d1_en.pdf#page=73
Andresen, M., Bergdolt, F., Margenfeld, J., & Dickmann, M. (2014). Addressing international mobility confusion–developing definitions and differentiations for self-initiated and assigned expatriates as well as migrants. The International Journal of Human Resource Management, 25(16), 2295-2318.
Arain, G. A., Bhatti, Z. A., Ashraf, N., & Fang, Y.-H. (2020). Top-down knowledge hiding in organisations: An empirical study of the consequences of supervisor knowledge hiding among local and foreign workers in the Middle East. Journal of Business Ethics, 164(3), 611–625. https://doi.org/10.1007/s10551-018-4056-2
Choi, S. G., & Johanson, J. (2012). Knowledge translation through expatriates in international knowledge transfer. International Business Review, 21(6), 1148-1157.
Connelly, C. E., Zweig, D., Webster, J., & Trougakos, J. P. (2012). Knowledge hiding in organisations. Journal of Organisational Behaviour, 33(1), 64-88.
Fang, Y., Jiang, G. L., Makino, S., & Beamish, P. W. (2010). Multinational firm knowledge, use of expatriates, and foreign subsidiary performance. Wiley-Blackwell: Journal of Management Studies.
Harzing, A. W., Pudelko, M., & Sebastian Reiche, B. (2016). The bridging role of expatriates and expatriates in knowledge transfer in multinational corporations. Human Resource Management, 55(4), 679-695.
Stoermer, S., Davies, S., &Froese, F. J. (2021). The influence of expatriate cultural intelligence on organisational embeddedness and knowledge sharing: The moderating effects of host country context. Journal of International Business Studies, 52, 432-453. https://link.springer.com/article/10.1057/s41267-020-00349-3
Sun, Y., & Hong, J. (2022). Developing a sustainability-driven learning organisation through expatriate knowledge transfer: The case of Haier. The Learning Organization (ahead-of-print).
Suutari, V., & Brewster, C. (2000). Making their own way: The international experience through self-initiated foreign assignments. Journal of World Business, 35(4), 417–436.
Suutari, V., Brewster, C., & Dickmann, M. (2018). Contrasting assigned expatriates and self-initiated expatriates: A review of extant research and a future research agenda. The management of global careers: Exploring the rise of international work, 63–89.
Wu, W. Y., Lee, L. Y., Quynh Phan, N. V., Qomariyah, A., & Nguyen, P. T. (2023). The influential factors and consequences of knowledge sharing for expatriates. International Journal of Emerging Markets, 18(3), 705-727.
Zagzebski, L. (2017). What is knowledge? The Blackwell Guide to Epistemology, 92-116.
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