In today’s global business environment, firms that acquire, share, and integrate cultural knowledge faster and more effectively than their competitors stay relevant. Those companies are better innovators and they are more agile—they quickly adapt their processes and products and services to capture new opportunities and respond to change across diverse markets.
Secret business
Tacit knowledge is information that is not easily documented and passed on to others. Tacit knowledge resides inside a person’s mind: worldviews, know-how, judgements, and cultural values, assumptions, beliefs, and norms.
Because cultural knowledge is tacit, it cannot be acquired through textbooks or training. Tacit cultural knowledge is acquired through experience and reflection. That makes a firm’s cultural knowledge a valuable resource for competitive advantage since it is difficult, if not impossible, for competitors to replicate.
It takes two (or more) to tango: knowledge management
The value of knowledge grows exponentially when it is shared. Knowledge management links individual-level learning to a broader network of learners. Workers across the organisation can use and integrate this information in innovative ways to solve different problems or to generate more effective ways of working and responding to market opportunities and challenges.
Any infrastructure that encourages the acquisition, sharing, application, and protection of knowledge is part of an organisation’s knowledge management system.
Best practice cultural knowledge management
1. Intercultural assignments
International and multicultural assignments are key components of cultural knowledge management systems. When designed and implemented effectively, they result in the acquisition, sharing, and application of cultural knowledge.
Yet much of this knowledge has traditionally been underappreciated by the wider organisation.
2. Learning culture
Organisations can multiply and leverage the benefits of intercultural assignments by encouraging the transfer of cultural knowledge acquired by the assignee across the entire organisation.
But keep in mind that cultural knowledge management is a people rather than a technology issue; cultural knowledge is tacit and not easily codified for capture within databases. Transfering cultural knowledge relies on an organisational culture that supports open communication, continuous learning, idea sharing, and collaboration.
3. Cultural Intelligence
Cultural Intelligence training transfers the knowledge, skills, and abilities required to manage cultural diversity. Individuals with high Cultural Intelligence (CQ) display four critical competencies:
CQ Drive is a willingness to work with diverse others.
CQ Knowledge is an understanding of culture and cultural differences.
CQ Strategy is the ability to flex mentally and take alternative perspectives.
CQ Action is the ability to flex verbal and non-verbal behaviour.
Research shows that Cultural Intelligence increases collaboration and knowledge sharing in diverse settings.
4. Online communities
Online technologies quickly connect people to others with cultural expertise or knowledge that is useful for solving workplace challenges or improving performance.
5. Senior management support
Leaders must consistently convey that cultural knowledge is critical to the firm’s success by committing resources to support the development of Cultural Intelligence and by modelling cultural knowledge acquisition, sharing, and application.
6. Knowledge maps
Cultural knowledge maps show how, where, and when cultural knowledge is generated both internally and externally. This information guides strategies for enhancing the capture, sharing, and use of cultural knowledge.
Organisations should compare their cultural knowledge to competitors’ cultural assets and strategies to identify and close gaps.
Barriers to effective cultural knowledge management
Organisations must be alert to cultures, structures, and systems that inhibit the transfer, sharing, and implementation of cultural knowledge.
Knowledge is power
If employees believe that their cultural expertise is a unique source of value that underpins job security and compensation, this may deter them from sharing their knowledge.
Performance rather than learning orientation
A fear of repercussions from disclosing cultural mistakes may stifle cultural learning. Errors should not be penalised.
Repatriation loss
Expatriate research shows a high exit rate for returning assignees. One reason cited is a perception that cultural skills and knowledge acquired while on assignment are not appreciated or used on repatriation—only 14 percent of companies have a formal repatriation strategy linked to career development.