Tacit knowledge, the life cycle and international manufacturing transfer

The ease with which a firm can transfer its manufacturing capability is strongly affected by the transferability of the manufacturing processes involved. A key determinant of transferability is the nature of the knowledge that has accumulated in the transmitting firm. The life cycle model can provide the basis for a discussion of knowledge accumulation, and hence for manufacturing process transferability over time. Drawing upon ideas of tacit knowing, the authors challenge the assumption that a manufacturing process necessarily becomes more transferable as it matures. Data drawn from six case studies are used to illustrate how tacit knowledge can affect the transfer process. The paper concludes with a typology of tacit knowledge in the manufacturing environment, and suggests steps which a firm might take to improve its transfer capability.