Complements or substitutes? A meta-analysis of the role of integration mechanisms for knowledge transfer in the MNE network

The MNE integration literature lacks coherence in the use and effectiveness of different integration mechanisms. In this study, we use meta-analytic techniques to quantitatively synthesize and evaluate the impact of centralization, formalization and socialization on knowledge transfer. Our analysis of 89 independent samples, including 15,506 subsidiaries, shows that socialization facilitates knowledge transfer more strongly than centralization and formalization. Socialization substitutes for formalization’s positive impact, and mitigates centralization’s negative impact on knowledge transfer. We further identify that directionality of knowledge flows is key in explaining the impact of centralization mechanisms. Finally, we point out important systemic problems in current empirical research.