For most MNEs, from a resource-based view tacit knowledge is:
A)Strategically less important than explicit knowledge.
B)Central to the informal relationships of the firm.
C) Easily captured, stored, and transmitted.
D) Seldom transferred through hands-on practice.

Question

For most MNEs, from a resource-based view tacit knowledge is:
A)​Strategically less important than explicit knowledge.
B)​Central to the informal relationships of the firm.
C) ​Easily captured, stored, and transmitted.
D) ​Seldom transferred through hands-on practice.

Quizplus · Accepted Answer

From a resource-based view, tacit knowledge is central to the informal relationships of the firm, as it is the knowledge that is embedded in the social relationships between individuals and requires personal experience, context, or intuition to be learned and communicated, and therefore, it cannot be easily captured, stored, or transmitted. In contrast, explicit knowledge can be codified and articulated in documents, procedures, manuals, or databases, making it easier to share and transfer among employees and affiliates of the MNE. However, this does not mean that tacit knowledge is strategically less important than explicit knowledge, as it can be a valuable source of competitive advantage, differentiation, and innovation for the MNE, especially in complex and uncertain environments where explicit knowledge is insufficient to cope with ambiguity and change. Tacit knowledge is also more difficult to imitate or substitute by rivals, as it is more closely linked to the unique capabilities and culture of the MNE. Hands-on practice and interaction are essential for the transfer of tacit knowledge, as they allow individuals to learn from each other's tacit knowledge and to develop new tacit knowledge through feedback, reflexivity, and experimentation. Hence, MNEs need to foster an environment of trust, respect, and collaboration among their employees and affiliates, and to promote the creation of communities of practice, networks, and social capital to enhance the sharing and transfer of tacit knowledge.

For Most MNEs, from a Resource-Based View Tacit Knowledge Is