| Summary: | Effective cross-border knowledge transfer can help to improve the competitiveness of the multinational companies, improve production process or product development, lower the operation cost, reduce errors, and improve profitability. However, cross-border knowledge transfer has always been a challenge for most of the companies especially when it involves communication and trust among a group of local and employees from different cultural background. Cultural diversity always causes the failure of knowledge transfer in actual implementation. Therefore, this study intends to propose a framework for managing cultural diversity and trust of cross-border knowledge transfer in Iskandar Development Region. The objective of this study is to propose a comprehensive framework to examine the key factors that affect employee’s participation in cross-border knowledge transfer. Based on focus group study with management of selected multinational companies in Iskandar Development Region, a comprehensive research framework is developed with ten independent variables (individualism/ collectivism, power distance, uncertainty avoidance, affective/ neutral, achievement/ ascription, and monochronic/ polychromic, trust, attitude, social support, and facilitating conditions), and a dependent variable (participation in cross-border knowledge transfer). Apart from contributing to the literature of knowledge management, the findings of the study also serve as a strong foundation for academics and future researchers to conduct future study in related industry and region.
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