Which of the following statements regarding knowledge diffusion is correct?
A) In a decentralized federation, knowledge is developed in national subsidiaries and diffused throughout the organization
B) In a centralized hub, knowledge is developed and retained at the center.
C) In a coordinated federation, knowledge is developed at the center and transferred to overseas units for local adaptation.
D) Knowledge diffusion is independent of structure, such that knowledge diffuses in a quite similar manner in all organizational structures.

Question

Quizplus · Accepted Answer

Contrary to the wording offered in answer choice "a",in the context of a decentralized federation,knowledge is developed and retained in the company's national subsidiaries.Furthermore,knowledge diffusion and organizational structure are not independent of each other,as suggested in answer choice "d".However,in the context of the centralized hub model,knowledge is developed and retained at the headquarters.Further,in the case of coordinated federations,management typically views foreign operations as appendages whose principal purpose is to leverage the capabilities and resources developed in the home market in order to adapt products or strategies to reflect market differences.

Which of the Following Statements Regarding Knowledge Diffusion Is Correct