How to Transfer Operational Capabilities in Multinational Companies without Disclosure: Optimizing Decentralization and Information Richness in Times of Digitalization

Abstract

Multinational companies simultaneously try to facilitate the internal transfers of operational capabilities without disclosing them to external stakeholders. To mitigate this tension, the decentralization of the decision-making and information richness of communication mechanisms are balancing parameters that can be regulated appropriately. Since digitalization has changed the coordination and interaction in intra-firm transfers, both balancing parameters need to be optimized. The present study examines how to adjust decentralization and information richness in times of digitalization by drawing on an exploratory single-case study approach in a German industry company. This research identified six sub-parameters set differently within the company’s digital collaboration platform and video conference technology network.

Keywords

• operational capabilities
• capability transfer
• capability protection
• decentralization
• information richness
• digitalization
• digital collaboration platform
• video conference technology