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Evaluate the argument "In the context of challenges in horizontal coordination, the knowledge providers face a motivation problem called the needle-in-a-haystack problem."
On Jul 25, 2024
Answers will vary. Horizontal coordination faces challenges with motivation and ability from both the source of and the recipient of knowledge.
Even when subsidiaries may be motivated to both seek and provide knowledge, they are often limited in their ability to transfer knowledge. For instance, at the IFC, hundreds of projects are completed each year by subsidiaries across the globe. As a result, it is difficult for a project manager in Vietnam to know what prior projects are relevant for her current project. In fact, she is likely to not even aware that similar projects have been completed within the company. This "needle-in-a-haystack" problem is particularly challenging in global companies where personal interaction is limited. To solve this problem, global companies create extensive knowledge systems that house past projects and related questions and answers. In addition, some knowledge may be more tacit in nature and require personal interaction. Because of this, many global companies keep up-to-date contact information available so those looking for knowledge can contact those who may have relevant knowledge, and they create norms that allow quick responses to colleagues' requests. For instance, one global consulting company has a response policy that requires colleagues to respond to requests within 24 hours.
The section "Horizontal Subsidiary Coordination" on pages 286-287 discusses the needle-in-a-haystack problem. Students can use this section to make their own interpretation and answer this question.