Role on Knowledge Transfer of the Mining Sector in Mongolia

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(1)The Expatriate Role on Knowledge Transfer of the Mining Sector in Mongolia. by Khulan Ganbat. A Thesis Submitted to the Graduate Faculty in Partial Fulfillment of the Requirements for Degree of Master of Business Administration Major: International Human Resource Development. Advisor: Chih-Chien Steven Lai Ph.D. National Taiwan Normal University Taipei, Taiwan June, 2012.

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(3) ACKNOLEDGEMENT I was ordinary Mongolian girl when I came to Taiwan. Institute of International Human Resource Development of National Taiwan Normal University, all my professors and classmates made out of me young researcher who is presenting this thesis study to you. This achievement would be impossible without my dear adviser Dr. Lai. Your patience and advice that you have for me are the most important reinforcement. I will be always grateful to you as hundred other advisees that you leaded to success. Dear Dr. Tony your words and your stories gave me so much different view to life. I learned from you how much is important to stand by yourself. Do what you love and always be positive. You words inspirational to me. Dear Dr. Pai Po Lee you are my role model from you I learn and see how diplomat and international exposed academic must be. Of course my achievement will be impossible without unconditional love of my families: Ganbat family my parents and siblings I love you all. I do my best to be good kid, Kutucu family my second family in Turkey no matter distance and time I love you all you are in my hurt, Kimura family my Japanese family who hosted me as their own kid. Even though I am adult I love you and remember all the happy days that I had with you. I never could make this study without my ten participants. I really appreciate your support and participation. All of you were so positive and willing. All of you taught me some lesson. I hope together we can make some positive change in Mongolian and especially in Mongolian mining sector. Thank you all. Special thanks to Ms.Otgon Suren Balgan from Leighton Asia, Odmunk Batchuluun, Munkhtulga Baasanjav, Anudari Orgil, Munktuguldur Ganbaatar, Mungubayar Yondon who helped me to contact with my participants. I really would like to thank my friends who helped me and believed me. Especially Monique Yearwood i think you the best I happy and honored to be your friend. Undram Sainzaya who always thinks that I can do whatever it is. I did it my dear! Love you! Bilguun Unurbileg who is the best second adviser you always you encouraged me to be researcher. Of course to all my friends I love you all. Thanks for loving me for who I am. Let us all be blessed by eternal blue sky!.

(4) ABSTRACT The knowledge-related roles of the expatriates are becoming one of the most appealing academic research topics. The purpose of this research is to identify the role of the expatriates on knowledge transfer of the mining companies in Mongolia. The objectives of this study are to: identify the role of the expatriates on knowledge transfer, identify what kind of knowledge is transferred by the expatriates, and identify the main factors and obstacles, which are impacting the expatriates on knowledge transfer process. Research was implemented by qualitative approach. Ten expatriates who fulfilled participation requirement was interviewed. Findings of the study revealed that expatriates who assigned to Mongolian mining companies play diverse role as knowledge transferor. Beside main job responsibility all the expatriates are in charge of advising, leading, guiding and training their co-workers. Managerial, organizational and technical related knowledge mostly transferred by expatriates to Mongolian employees. Main influential factor and obstacle is managerial support and language ability of the local employee. Findings of the study will assist mining organizations clearly see where the weaknesses are and how to improve that in the future with expatriates‟ involvement. This study contributes to the existing literature. Study was one of the groundbreaking studies about expatriates in Mongolia and knowledge management in the mining industry of Mongolia. Keywords: knowledge transfer, knowledge management, expatriate. I.

(5) TABLE OF CONTENTS ABSTRACT ................................................................................................................................................. I TABLE OF CONTENTS ................................................................................................................ II LIST OF FIGURES ...................................................................................................................... IV LIST OF TABLES ......................................................................................................................... V CHAPTER I. INTRODUCTION ............................................................................................................. 1 Chapter Overview ................................................................................................................................. 1 Background of the Study ...................................................................................................................... 1 Statement of the Problem ..................................................................................................................... 2 Purposes of the Study ........................................................................................................................... 3 Research Questions ............................................................................................................................... 4 Significance of the Study ..................................................................................................................... 4 Delimitation and Limitation................................................................................................................. 5 Definitions of the Terms ...................................................................................................................... 6 CHAPTER II. LITERATURE REVIEW ................................................................................................ 7 Chapter Overview ...................................................................................................................... 7 Mining Sector in Mongolia ........................................................................................................ 7 The Needs of Expatriation ......................................................................................................... 9 The Expatriate Role in Knowledge Transfer ........................................................................... 10 The Knowledge for Knowledge Management ......................................................................... 12 Managing Knowledge in Knowledge Transfer ........................................................................ 13 The Personal Role in Knowledge Transfer .............................................................................. 14 Barriers of Knowledge Transfer in the Organizations ............................................................. 15 CHAPTER III. METHODOLOGY .............................................................................................. 18 Chapter Overview .................................................................................................................... 18 Research Framework ................................................................................................................ 18 Detailed Explanation of the Framework .................................................................................. 19 Research Procedure .................................................................................................................. 23 Research Method ...................................................................................................................... 25 Research Participants ............................................................................................................... 26 Instrument ................................................................................................................................ 26 II.

(6) Data Collection......................................................................................................................... 27 Data Analysis ........................................................................................................................... 31 Data Analysis Procedure .......................................................................................................... 32 Data Coding Process ................................................................................................................ 33 Reliability and Validity ............................................................................................................ 34 CHAPTER IV. FINDINGS AND DISCUSSIONS ............................................................................. 36 Chapter Overview .................................................................................................................... 36 Expatriate‟s Role on Knowledge Transfer Process .................................................................. 36 Type of Knowledge Transferred by Expatriates ...................................................................... 43 Main Factors and Obstacles on Knowledge Transfer Process ................................................. 47 CHAPTER V. CONCLUSIONS AND SUGGESTIONS .................................................................. 61 Chapter Overview .................................................................................................................... 61 Conclusions .............................................................................................................................. 61 Suggestions .............................................................................................................................. 64 REFERENCES ......................................................................................................................................... 68 APPENDIX A: INVITATION LETTER...................................................................................... 75 APPENDIX B: INTERVIEW QUESTIONS................................................................................ 76 APPENDIX C: EXAMPLE OF PARTICIPANTS INTERVIEW RESPOND……………....….78. III.

(7) LIST OF FIGURES Figure 2.1 Competence of knowledge transfer....……………………………………...….....18 Figure 3.1 Competence of knowledge transfer……………………………………………....19 Figure 3.2 Research procedure…………….……………...………………………………….24 Figure 3.3 Data analysis procedure…………….……………...…………………………......33 Figure 3.4 Example of the coding process…………………………………………………...34. IV.

(8) LIST OF TABLES Table 3.3 Interview Details……………………………………………………………………...28 Table 4.1 Description of the Expatriate‟s Roles…………………………………………….…..37. V.

(9) CHAPTER I. INTRODUCTION Chapter Overview The first chapter of this study presents an introduction into the research. The background, problem statement, purpose of the research, research questions, significance of the study, and delimitation and limitation will be presented to the readers. Lastly, this chapter will present definitions and terms, which might be not familiar to readers due to country specialty. This chapter will assist readers to have a logical and comprehensive understating of the present research study.. Background of the Study For any business to survive and compete in today‟s globally competitive market place, the concept of knowledge creation and transfer must be understood and embraced across the organizations. The development and implementation of an effective knowledge management strategy is an absolute necessity (McLaughlin, 2007). Research has shown that knowledge management is positively related to the reductions in production costs, faster completion of new product development projects, team performance, firm innovation capabilities, and firm performance including sales growth and revenue from the new products and services (Arthur & Huntley, 2005). With regard to knowledge, the issue of transferability is important, not only between organizations, but, even more critically, with the organizations (Grant, 1996). There are different ways to transfer knowledge. The use of international assignments has become one of the integral parts of the headquarters in order to transfer business strategy and organization culture. Expatriates act as a link between headquarters and host organizations. Thus, a significant amount of information and knowledge moves through their hands, particularly in the case of tacit knowledge. Expatriates are the basic mechanism, by which tacit knowledge is transferred in organization (Bonanche &Brewester,2001).. 1.

(10) After reviewing a number of literatures related to the expatriate‟s role on knowledge management, the researcher identified that there has not been very much researches focusing on the role of expatriates in knowledge transfer. Particularly, there are no researches related to expatriates in Mongolia and their role in Mongolian mining organizations. It is important for Mongolian mining companies to identify the role of the expatriates, in order to utilize and take advantage of the knowledge and experience of expatriates. Mongolia‟s mining industry is the basic resource of the country‟s economy, and currently mining sector is in the developing phase, which requires the experience and knowledge of expatriates.. Statement of the Problem In recent years, the Mongolian economy has been booming due to vast exploration of the mining fields. Foreign direct investment, especially in the mining sector, has triggered large foreign exchange inflows and international reserves are at an all-time high (IFM report, 2010). Multinational mining companies, who own shares, are expanding their activity by expatriates‟ assignments. Oyu Tolgoi project, sponsored by the Mongolian Government, Ivanhoe Mines and Rio Tinto, are expected to generate substantial economic benefits for the people of Mongolia. Ivanhoe Mines and Rio Tinto proposed to invest 5 billion USD, over the first five years of the project. Oyu Tolgoi would then produce 500,000 tons of copper and 330,000 ounces of gold a year for the next 45 years, making it one of the largest mines in the world. Over the life of the project, the companies propose to invest a total of 7.5 billion USD real terms (World Growth International Report, 2009). Investment and development will require highly skilled expatriates‟ professionals of all level in all sectors. Expatriates have a vital role to smoothen and activate operation of Multinational companies in their host countries (Welch & Shuler, 1999). Mongolia is one of the recently opened countries to the foreign market, Mongolians lack of experience in terms of running large scale and international business in different fields (Fiscor, 2007). Additionally, during the transition period, many highly educated middle age Mongolians, who graduated from Former Soviet Union countries, left Mongolia to find better working conditions and higher salaries in developed countries like the US, Great Britain, Japan, Australia, Korea etc. Approximately 200,000 Mongolians are living and working in 60 different countries (National Statistical Office of Mongolia, 2010).According to the Atlantic Research Technologies L.L.C, Senior Management Executive Search and Recruitment World Wide positions that will 2.

(11) be in demand. in Mongolia for Expatriates are: CEO's, COO's, CFO's, VP's, presidents,. managing directors, general managers, country managers, sales and marketing directors, national sales managers, financial controllers, specialists, plant managers, manufacturing directors, supply chain directors, sourcing managers, and others. It is inventible that Mongolia will need high skill and knowledge of expatriates and their participation in all levels of industry and business. It is also obvious that Mongolian HR practitioners must recruit large amount of expatriates from different countries. Therefore, it is important to identify what is the role of expatriates on the knowledge transfer process in the organizations. However, knowledge management and expatriate issues are relatively new research fields, in terms of Mongolian organizations. There are almost no related previous researches on that topic. Therefore, it is necessary to address above issues as a research topic. Earlier expatriates were only associated with the ethnocentric approach and indicated the practice of using parent-country nationals for staffing key positions in foreign-owned subsidiaries. Consequently, the primary goal of expatriates‟ parent organizations has been able to exert control and achieve global integration across subsidiaries (Black, 1988; Shuler 1993; Tung, 1993). Although over the last decade or so, the nature of the expatriate assignment has gradually changed. The old approach of expatriate “just get the job done”–is no longer relevant. Today, expatriates are expected to engage in local staff development and improvement of skill by transferring different type of knowledge. Research reveals various possible strategic targets for expatriates in that area (Minbaeva & Michailova, 2010). To be practical and successful with expatriates in the future, it is important to figure out the current situation and analyze expatriates experiences on knowledge management, specifically on the knowledge transfer issue. Additionally, the researcher assumes that result of the study will have a positive effect on the expatriate‟s reputation in Mongolia. Currently, majority of Mongolians have inappropriate stereotypes that expatriates are taking local employees‟ positions and getting higher salary comparing to local employees. Thus, it is important to provide concrete facts about expatriates‟ contribution to the host country and organizations.. Purposes of the Study This study will identify the role of expatriates on knowledge transfer in mining companies of Mongolia and what type of knowledge transferred by them. It will also identify 3.

(12) main factors and obstacles, which are impacting expatriates‟ in order to transfer knowledge. Based on the research results, mining companies will be possible to improve or change certain conditions, which are negatively impacting the transfer process in order to achieve a competitive advantage additionally findings will reveal where is the gap and weakness of Mongolian employees in mining sector. Research Questions To identify the role of the expatriates on the knowledge transfer process, the following questions will be used as the main inquiry of this study: 1. What is the role of expatriates on knowledge transfer process in mining companies of Mongolia? 2. What type of knowledge is transferred by the expatriates to Mongolian mining companies? 3. What are the main factors and obstacles affecting expatriates during the knowledge transfer process? Significance of the Study Due to the globalization needs, core competencies have to be effectively transferred across units and borders. It has been proven by many studies that expatriates play a vital role on strengthening core competencies of the organizations (Conn & Yup, 1997). According to the resource-based view, a firm performs well over time because it develops a distinctive strategic competence that allows it to overcome its competitors (Dunphy, Turner & Crawford, 1997). Without managing the valuable knowledge of expatriates, it will be impractical to strengthen core competence in host organizations. Therefore, it is important to identify the role of the expatriates on knowledge transfer in the mining companies of Mongolia. To support knowledge transfer in organizations, it is necessary to identify and analyze what type of knowledge transferred, what factors and obstacles are affecting the knowledge transfer process. Currently Mongolia is under the new stage of economic growth (IMF report, 2010). Mining companies are leading the rapid growth of the economy. Therefore, for those organizations, it is important to utilize all the resources of the organization without littering. Particularly, human resource is fundamental for the organization‟s competitive advantage. 4.

(13) Expatriates play a vital role in strengthening the competitive advantage in the organization, by transferring valuable knowledge and supporting local employees on new skills and knowledge development. Expatriate managers not only transfer technical or managerial knowledge, but also culture and information (Dowes & Thomas, 2000). The flow of the knowledge between subsidiaries, and from subsidiaries to home office, from individuals to individuals is important because of the increasing independence of foreign subsidiaries (Harzing, 1999). In such a case, it is important for Mongolian mining organizations to clearly identify the role of the expatriates and their contribution to the organizations in order to increase competency. In this research, the target is to identify the role of the expatriates on knowledge transfer and to try to answer what type of knowledge is transferred to the host organization. It is significant to mining companies to identify above aspects because result of the study will assist them to have a clear picture on the current utilization of the expatriate‟s knowledge. In the existing literature, the lack of awareness concerning links between knowledge management and HRM is surprising (MacNeil, 2003). Especially there are a limited number of references and literatures on expatriates, knowledge management and human resource issues related to Mongolia, particularly to the Mongolian mining industry. This study is one of the groundbreaking. studies, for the related fields and. contribution to the Mongolian HR field literature. Delimitation and Limitation. Delimitation This study will analyze the role of the expatriates on knowledge transfer in the Mongolian mining company. Study not concerned with the exchange of the knowledge between host country nationals. Role of the expatriates on knowledge transfer will be reflected from the perspective of expatriates by themself. Study excludes host country nations contribution to knowledge transfer and their standpoints towards to expatriates role. Study will only reflect expatriates standpoints and experience. Result of the study will be drawn from the self-evaluation of the expatriates.. Limitation This study has several limitations. In the implementing phase of this thesis study, the researcher encountered some difficulties in trying to conduct interviews via the internet with expatriates. Second limitation of this study is shortage of the literature related to Mongolian HR 5.

(14) field and mining industry of Mongolia. Additionally as mentioned above link between knowledge management and HRM is lacking, comparing to the other fields of HRM this subject is relatively new. Definitions of the Terms. Expatriate- refers to any person temporarily working outside of the country for which he or she holds passport on international assignments for “a period exceeding 6 months per period cover” (Guo, 2007).. Mining Industry –the complex of the branches of production engaged in the exploration for deposits of minerals and in the extraction from the earth and primary processing (concentration) of these minerals (thefreedictionary, 2011).. Mining Company - Company that owns and manages mines (wikipedia, 2011). Knowledge Management- Knowledge management is the process of identifying, capturing, organizing and disseminating the intellectual assets that are critical to the organization‟s long term performance (Debowski, 2006).. Knowledge Transfer – the process through which one unit (group, department or division) is affected by the experience of another additionally it can be observed through changes in the knowledge or performance of recipient units (Argote & Ingram, 2000).. Mongolian-landlocked country in Central Asia. Mongolia bordered with Russia to the north and China to the south, east and west. Ulaanbaatar is the capital and largest city, is home about 45% of the population (wikipedia , 2011).. Oyu Tolgoi- gold copper project is locked in the South Gobi Desert, about 550 km due south of Ulaanbaatar and 80 km north of the Chinese-Mongolia border. Oyu Tolgoi deposit may be one of the richest copper-gold ever discovered. When it‟s fully developed, many believe that it will rank alongside great mines, such as Grasberg or Escondido (Fiscor, 2007).. Tavan Tolgoi- is the 10th biggest recourses of the coal in the World. Enrichment of coked coal of 6th layer is 66. 9%, in other words one of the best qualities of the coking coal (Tavantolgoi, 2011). 6.

(15) CHAPTER II. LITERATURE REVIEW Chapter Overview This chapter presents review of the relevant literature which assisted to researcher to draw out the research issue. Literature review tried to emphasis background of the related research fields. Point out why those issues are important to study and tried to deliberately explain in details. Some part of the review might be absolutely new for readers because of the country specialty therefore literature attempted to explain each issue in details.. Mining Sector in Mongolia Mongolia is an East Asian country with relatively spare population and rich with diverse natural resources that covers vast area of land. Economic activity in Mongolia has based on herding and agriculture although development of extensive mineral deposits of copper, coal, molybdenum, tin tungsten, and gold have emerged as a driver of industrial production. Mining sector contribute to country economy 21.8% of GDP and agriculture 15% of GDP beside that dominant industries in the composition of GDP are trade, service, transportation, communication and tourism in recent decade (ADB report, 2010). According to the IMF, the country‟s GDP rate will double in 5 years and quadruple in a decade (International Monetary Fund, 2009). Oyu tolgoi and Tavan Tolgoi, two mines in the south, of Mongolia are expected to provide much of the new wealth. According to the World Growth Organization, Oyu Tolgoi will produce 500,000 tons of copper and 330,000 ounces of gold a year for the next 45 year, making it one of the largest mines in the world. The mining sector was expected to play an important role in the country‟s future economic development. The Government adopted several long term programs to explore for and develop metallic and nonmetallic minerals, such as coal, copper, gold, oil, and silver. The Government also encouraged foreign investment and participation in exploration exploitation and processing of the minerals. Mining accounted for about 30% of the country‟s industrial output 60% of its export revenue (Mongolia Development Gateway, 2005). Those projects will require huge investments, over the duration of the project companies‟ estimate to invest a total of 7.5 billion USD in real terms. Investment will be not just in the mining sector, besides that, other sectors like infrastructure-transportation, communication, construction, 7.

(16) education, retail, other related business and sectors will boost with it. The scale of the boom will be vast the whole new towns will need to be built around the mines. Many challenges will be posed to this rapid development. One of the greatest will be the strain on the labour market (Business Asia, 2000). The changes in the structure of the economy, greater openness and competitions, as well as greater use of the technology have all resulted in increased demand for skilled and educated labor. But those changes from a low base-Mongolian are far from being a high skill-intensive economy. The skills that are in increasing demand include analytical skill, behavioral skill, practical knowledge of English and IT and technical skills. In today‟s complex and changing environment, the challenge is to build above mentioned skill and knowledge. According to the World Bank report, (2010) about 37% percent of firms reported that Mongolian skilled technicians performs worse than their counterparts; In terms of the skills Mongolians labour force lack the most following skills; analytic skill, critical and creative thinking, behavioral skills, communication skill, work discipline, leadership and teamwork. The other two big gaps are in practical knowledge: English 59%, IT 37% and technical/ professional skills 23%. In other words we can describe current situation as mismatch between the skills that workers bring to the labor market and those demanded by the labor market. Additionally to this situation, during the transition period, many highly educated middle age Mongolians, who graduated in the Former Soviet Union, left to find better working conditions and higher salaries in developed countries like the US, Great Britain, Japan Australia Korea etc. Approximately 200,000 Mongolians are living and working in 60 different countries (National Statistical Office of Mongolia, 2010). Currently it is inventible that Mongolia will need high skill and knowledge of expatriates and their participation in all level of industries and businesses. It is obvious that Mongolian HR practitioners‟ specially mining companies‟ HR practitioners must recruit large amount of expatriates from different country. Currently construction and mining companies are recruiting foreign workers to respond to the inadequacy of skill of the local labor force. The number of the employment permits issued or renewed to foreign workers in 2005 was 14,210 with a total of 5828 foreign workers working in Mongolia at the end of 2005 (World Bank, 2006). To strengthen competitive advantage and to increase productivity, companies will spend resources on recruitment of the expatriates. Especially joint ventures and foreign companies will be in this count. Currently there are several large joint ventures are operating in Mongolia: Erdenet Mining Corp., : Erdenet 49% and Samsung Corp. of the Reblic of Korea 51% joint 8.

(17) venture, Shim Technology :Erdenet 30% shares and Metal-Tech Ltd. of Israel 70%, Ivanhoe Mines Ltd. Etc. (Mining journal, 2004). Therefore it is important to investigate role and. contribution of the expatriates who are currently working in Mongolian mining companies.. The Needs of Expatriation Expatriate-employees come from a country that is different from the one in which they are working. Organizations send expatriates overseas or into a multinational work setting expect those expatriates to perform, whether that involves building a dam, managing a factory, negotiating a contract, teaching children to read, or developing and training local staff. Edstrom & Galbraith (1977) suggested that the presence of expatriates in subsidiaries satisfies three main needs: a. To fill positions when no local talent is not available b.. To provide training for managers. c. To expose members of the organizations in general and expatriates managers in particular, to a process of socialization that will reinforce the culture links between the home office and subsidiaries. In the position-filling function the expatriates fills a vacuum in knowledge in developing subsidiaries. In other words, the expatriate managers are expected to transfer knowledge from the home office to her new assignment. By standing as a contact between the two units, expatriate manager contributes to the absorptive capacity of the firm (Cohen & Levinthal, 1990). Those types of expatriation was the main target of this thesis study. Dowes and Thomas (2000) found that young subsidiaries have a proportionally larger population of expatriates than old subsidiaries. Mining companies in Mongolia are mostly very young subsidiaries which lack of experienced experts. Black and Gregersen (1999) identified two principal objectives of sending expatriates: To generate knowledge for the organization and to develop global leaders. The first objectives involve knowledge transfer from headquarters to subsidiary, as well as learning from that subsidiary. The second objective involves long-term development of global leaders. In order for an executive to develop a global perspective on business, it is an imperative to have time working abroad. More specifically, they found three general practices among successful expatriations: a focus on knowledge creation and global leadership development; a selection of 9.

(18) people whose technical skills are exceeded or matched by their cross-cultural abilities; and the use of a deliberate repatriation process well planned in before. According to Fish & Wood (1993) the integration of international business and expatriate career management is an important consideration for any firm wanting to succeed internationally.. The Expatriate Role in Knowledge Transfer One of the important research fields of international human resource is expatriates. Expatriates can be used for number of various reasons: for management development, control coordination, special staffing needs and organization development purpose: knowledge transfer and settling organizational culture (Edström & Galbraith, 1977). Traditionally expatriates has been associated with ethnocentric approach and indicated the practice of using parent-country nationals for staffing key position in host country (Minbaeva & Michailova, 2010). Mainly most important role of the expatriate was well defined control and coordination (Harzing, 2002). Business scholar had a wide focus on expatriation topic especially focus was on the selection, pre-departure training, adjustment, successful expatriation and recently repatriation become popular field to conduct studies (Bonance & Brester, 2001; Delios & Bjorkman, 2000; Dowes &Thomas 2000; Tsag 1999). Over the recent two decades expatriates assignment concept changed within the globalization and high technological intensive business world. Old understanding of the expatriates: -just get job done- is no longer relevant. Nowadays expatriates are expected play in local staff development, support skill and knowledge transfer. Research reveals various possible strategic targets for expatriates in that area (Minbaeva & Michailova, 2010). The knowledgerelated function of expatriates is complementary to traditional function of coordination and control. Delios & Bjorkman (2000) noted that expatriates with control and coordination responsibility transfer parent organization‟s knowledge and professional skill to hosting organizations. The ability of the parent organizations to transfer knowledge depends on the skills of the individuals who are directly involved in the transfer process, because ultimately it is the individuals who are imparting and receiving knowledge (Argyris & Schon, 1978). One of the main responsibilities of expatriates is to bring and transfer skill from parent organizations in to the host countries (Bonanche & Brewer, 2001). The research topic on the role of the expatriates as transferor of the knowledge to host organizations becoming new trend in human resource 10.

(19) management studies (Bonance & Brester, 2001; Delios &Bjorkman, 2000; Dowes &Thomas 2000; Tsag 1999). According to the Executive Report on New Forms of International Working by the Center for Research into Management of the Expatriates (2002), organizations appear to be making increasing use of all type expatriate assignments. Moreover skills /knowledge transfer is among the main reasons for using each type of assignment. After reviewing and analyzing related literatures researcher figure out that there are not much research on the role of expatriates on knowledge transfer process especially no relevant research have been conducted in Mongolia. But current situations caused in labour market of Mongolia insisting researchers and practitioners to concern about those issues. As mentioned before to respond to the current mismatching situation Mongolian organizations are increasing recruitment of the expatriates. Therefore focus of the current research is knowledge transfer to Mongolian mining companies through expatriates. Purpose of this study is identify what is the main role of the expatriates on knowledge transfer, what type of knowledge transferred by expatriates, what is the main factors which affecting expatriates on knowledge transfer, what is the obstacle that they face during the knowledge transfer process. In order to respond to research questions researcher attempt to link human resource and knowledge management fields together specifically expatriate and knowledge management issues. According to the studies of Hansen (1999) the greatest benefit of the knowledge management will only be achieved when it is coordinated with HR and in alignment with company strategy. Knowledge and human resource are critical organizational resource which provides a sustainable competitive advantage in a competitive and dynamic economy (Davenport & Prusak, 1998; Foss & Pedersen, 2002; Grant, 1996; Spender & Grant, 1996). The success of knowledge transfer depends on the appointment of competent expatriates. Previous research by Bjorkman & Schaap (1994) indicated that most importantly, good expatriates must possess superior managerial and technical skills. Beside this, however good expatriates must also have a genuine desire to impart years of hard-earned professionals knowhow to local employee s, commit to localization and work themselves out of jobs (Rogers, 1999). Especially for the current situation when many mining companies are facing skill mismatching issue in order to solve and to build competitive advantage it is necessary to rely on staffing and selecting expatriates who has specific knowledge, skill, abilities or competencies (Brown & Duguid, 1991). Result of the studies on knowledge transfer and sharing shows that successful 11.

(20) knowledge transfer is positively related to reduction in production cost, faster completion of new product development projects, team performance, firm innovation capabilities and firm performance including sales growth and revenue from new products and service (Arthur & Huntley, 2005; Collins & Smith, 2006). Transfer of knowledge, especially when transferred it has tacit components, may require numerous individual exchange (Berthoin, Lenhardt, & Rosenbrock, 2001; Nonaka, 1994; Szulanski, 1996). When an MNC decided to transfer knowledge, particularly tacit knowledge, between subsidiaries they often assign employees to the foreign operation. In other words, expatriates are among the basic mechanism to transferring knowledge (Bonache & Brewster, 2000; Downes & Thomas, 2000; Inkpen, 1998). So it is obvious that personal involvement play critical role on the knowledge transfer. Additionally desirable attributes of good expatriates for knowledge transfer are ability to communicate, integrity and role model, willingness to learn from and respect local employees and patience. However, little research has been conducted on how individuals transfer knowledge what are the impacting factors. In the following section of the study researcher attempted to provide literature review on knowledge management especially on knowledge transfer.. The Knowledge for Knowledge Management Before to talk about knowledge transfer it would be logical to describe first about what is the knowledge and what is knowledge management, why knowledge management issues are becoming important to all the organizations and conclude discussion by presenting knowledge transfer issue in detail. There are many literatures on knowledge and knowledge management topic. Researchers have not yet reached consensus on the knowledge definition for example Debowskii (2006) defined knowledge as a process of translating information (such as date) and past experience into meaningful set of relationships which are understood and applied by individuals. Other researcher Nonaka (1994) considered that knowledge is based on the information and justified by one‟s belief. Other researchers believe that all information is considered as knowledge, but knowledge is more than just information, knowledge includes information and know-how (Machlup, 1980; Zander & Kogut, 1995). Comparing many definitions of knowledge from the literature review this study sympathizes following definition: knowledge is information processed by individuals including ideas, facts, expertise, and 12.

(21) judgments relevant for individual, team and organization performance (Alavi & Leidner, 2001; Bartol & Srivastava, 2002). Most of the literature differentiates two type of knowledge: explicit and tacit. Explicit knowledge is knowledge that can be shared with others- it can be documented, categorized, transmitted to others as information and illustrated to others through demonstrations, explanations and other forms of sharing (Debowskii, 2006). Comparing explicit knowledge to tacit knowledge, tacit knowledge has far harder component to identify and manage. Knowledge which draws on the accumulated experience and learning for a person and which is hard to reproduce or share with others called tacit knowledge (Debowskii, 2006). If we can duplicate explicit knowledge tacit knowledge is hard to duplicate, replace or interpret, as it grounded in a blend of experience, research and induction which may have been refined over many years. The difficulty of translating this knowledge into tangible product or process raises two issues for the organization: how to identify who holds such knowledge, and how to enable others to access it when they need it.. Managing Knowledge in Knowledge Transfer Main concern of this research is how expatriates transfer explicit and tacit knowledge that they own to Mongolian mining companies. Because for any organization to survive and complete in today‟s globally competitive market place the concept of knowledge management and transfer must be understood and embraced across the organization (McLaughlin, 2007). Traditionally that knowledge has not been treated with degree of systematic, deliberate or explicit effort as devoted to managing human, material and financial resources. But recent decade organizations are changing, many of them have invested considerable time and money into knowledge management initiatives including development of knowledge system which consist from technology to facilitate knowledge collection, transfer, sharing, storage and distribution of knowledge (Wang & Noe, 2000). So what is knowledge management? According to the Debowskii (2006), knowledge management is the process of identifying, capturing, organizing and disseminating the intellectual assets that are critical to organization‟s long-term performance. The purpose of the knowledge management is helping companies create, share, and use knowledge more effectively. Effective knowledge management reduce errors, create less work, provides more independence in time and space for knowledge workers, generate fewer questions, 13.

(22) produce better decisions, reinvent fewer wheels, advance customer relations, improves service and develops profitability (Karlsen & Gottschalk, 2004). From the beginning of the development of knowledge management research, researcher defined knowledge transfer differently in the different time period for example in 1994, Singley & Anderson (1994) defined KT as how knowledge acquired in one situation applies to another. Szulanski (2004) defined differently according to researcher knowledge transfer typically has been used to describe the movement of the knowledge between different units, divisions, or organizations and individuals. Recently Wang and Noe (2010) defined knowledge transfer as process which involves both the sharing of knowledge by the knowledge source and the acquisition and application of knowledge by the recipient. Knowledge transfer receives much attention from the researchers and practitioners (Argote & Ingram, 2000). Knowledge transfer include movement, training, communication and observation of personnel, technology transfer, replication routines, patents, scientific publication and presentation, interaction with suppliers and customer, alliances, and other form of the inter-organizational relationships.. The Personal Role in Knowledge Transfer Main resource of the knowledge transfer is individuals who have specific knowledge and skill. Prusak (1996) stated that knowledge and experience is created and resides in a person‟s mind and both knowledge and experience therefore remain person-bound. Torbiorn (1997) suggested that the transfer of knowledge and experience across national boundaries may require the continued transfer of staff in order to apply company norms or know-how, to set up activities, and educate. Garvin (1993) also argued that it is very difficult to become knowledgeable in passive way; personnel rotation programs are one of the most powerful methods to transfer knowledge and experience. The significance of the personal role then should not be underestimated, especially in global business, where an understanding of cultural difference, such as business behaviors attitudes, mindsets and language can be critical to an organization success. Knowledge must be viewed as originating in the person, as it is shaped by one‟s initial reserve of knowledge and the inflow of the new information (Fahey & Prusak, 1998). This means that every person carries unique knowledge and experiences. For example after reading same book every person will have different opinion and understating depending on their previous knowledge and experience. As every individual builds her or his own knowledge by 14.

(23) transforming and enriching information knowledge cannot easily be transferred to another person. Knowledgeable employees can teach or train employees in a certain field by passing on their knowledge in lectures, meetings, presentations, on-the–job training, by demonstrating how to approach certain task (Bender & Fish, 2000). The characteristic of knowledge and experience described above shows that it is significant for the organization to retain knowledgeable people. For current study researcher concern expatriates as a main figure in organization who transfer and facilitate knowledge transfer. If hosting organization is unable to fully utilize expatriates knowledge it will cause financial loss and waste of time. Certain knowledgeable people are irreplaceable. Especially if expatriates who carries knowledge and skill that are not held by local staff. Not just technical skill and knowledge transferred though expatriates organization culture, management skill, knowledge about products or services, financial skill or market skills are all can be transferred. Researcher is emphasizing in this study knowledge transfer through person because nature of the knowledge demand direct contact in order to make transfer possible. Most of cases technology can never substitute for rich interactivity, communication and learning that are inherent in personal contact (Fahye & Prusak, 1998). Development in world-wide communication systems, such as e-mail or videoconferences can speed up information transfer to accelerate business or reduce travel for business meeting, but in developing and retaining expertise it cannot fully substitute for face-to face contacts or long term assignments (Dowling, Welch & Schuler, 1999). Organizations must be very careful and professionals when they recruit expatriates. Allen and Alvarez (1998) argued that organizations too often fail to reward or recognize the new skill and knowledge acquired from expatriates. By not considering the expatriates‟ career motivation and not offering task where knowledge can be utilized, organizations may be confronted with expatriates choosing to leave the organization (Fish & Wood, 1997). As we know unsuccessful expatriates are costly Swaak (1997) argued as expatriates cost three to four times their base salary, they should be treated as investment. Therefore a main objective of this research is to reveal experience of expatriates who are currently working Mongolian in mining company on knowledge transfer issue.. Barriers of Knowledge Transfer in the Organizations 21th century distinct from past industries advanced technology, rapid growth of economy, internet technology demand to produce knowledge as a major source of the wealth. 15.

(24) Organizations will need to rely on their people as resource in order to provide core competences and create new advantages of the organization.. However managing knowledge transfer,. managing people with knowledge are very difficult mission for the HR of the organizations. Main obstacles of the organization are creating friendly and save environment where knowledge carries will share, transfer and develop their existing knowledge. Most of the organizations fail to create such environment and waste resources. Researchers indicate that the management of the individual learning to ensure its transfer to collective organizational knowledge is notoriously difficult to control (Dixon, 1999; Senge 1990). Due to their wider skills, expertise and work responsibilities knowledge workers in this case expatriates have greater needs in order to transfer their knowledge and experience. Therefore they need to be managed differently (Storey, 1992). Management cannot simply relay on the traditional “command and control approach, which is based on scientific management assumption concerning the rigid roles of management and workers i.e that management „think‟ and workers must “do” (Taylor, 1911).The different approach required to manage expatriates who are transferring knowledge to hosting organization. Organization must have specific HRM strategy to retain and develop high quality employee/ expatriates/ who are identified as crucial for current and future success of the organization. Organization must try to utilize the knowledge and skill of employee to create intangible assets, which cannot be easily replicate by their competitors (Boxall & Steeneveld, 1999). However as researcher indicated there are persistent barriers in the organization which preventing the communication and sharing of the tacit knowledge between knowledge worker, management teams and employee. Hislop (2002) argued that the success of any knowledge management initiative is highly dependent on the workers willingness to share their individual information, and those workers attitude towards knowledge transfer will be influenced by perceptions of the fairness of their psychological contract with the organization. Therefore organizations must be sensitive and aware of the factors and obstacles which are affecting to knowledge workers/ expatriates/. After identifying obstacles and factors organization will be able to remove or improve the current situation in order to fully utilize knowledge resource. After reviewing all the related field literature we can summarize that in order to be successful in international business arena organization must spend resource in knowledge management. Especially young subsidiaries of multinational companies should take an advantage from the headquarters specialist, experts/expatriates/ in order to develop local 16.

(25) employee skill and knowledge. Knowledge transfer process is the key aspect of knowledge management which opens access to knowledge. Without knowledgeable individuals it is impossible to implement knowledge transfer. Individuals or in this study expatriates carry unique knowledge and plays main key role in knowledge transfer process. Any advanced technology cannot substitute unique knowledge of expatriates. Therefore it is important for Mongolian mining companies identify role of expatriates, recognize main factors and obstacles which are impacting to expatriates in order to fully utilize available knowledge resource. Current skill mismatching situation in Mongolia demanding practitioners and researcher conduct relevant research. Without academic research result it is complicated to encourage individuals and companies to support knowledge management. This study will help managers and HR practitioners carefully manage knowledgeable expatriates and same time develop local employee. Researcher designed framework of the study in based on literature review. Following framework included most influential factors on knowledge transfer process. After discussion with professor framework was designed and existing knowledge management frameworks were concerned.. 17.

(26) CHAPTER III. METHODOLOGY Chapter Overview This chapter will introduce to readers research method, research procedure, research sample, measurement instrument, data collection and data analysis approach. The chapter further describes the research procedure and the research sample which will assist the reader to have a clear understanding of the research findings. In the end of the chapter the measurement instrument, data collection, and data analysis methods are presented. The chapter deliberately presents each research method procedure.. Research Framework With advice and assistance of the knowledge management professor research framework was structured by researcher based on the literature review. The role of the expatriate in knowledge transferring across multinational companies has emerged as a new area of inquiry in the international human resource management HRM literature, and organization practices of expatriation have become a subject of recent debate (Bonance & Brester, 2001; Delios &Bjorkman, 2000; Dowes & Thomas 2000; Tsag 1999). People are the heart of knowledge management and knowledge transfer. The success of the organizations depends on the ability to effectively manage source of the knowledge/expatriates/. Organization must create friendly and safe environment in order to encourage and fully utilize knowledge of the expatriates. In order to create such environment organizations must understand basic factors which are affecting expatriates on knowledge transfer. Therefore purpose of the research is to identify role of expatriate on knowledge transfer, what type of knowledge are transferred, what are the main factors and obstacles are affecting to knowledge transfer process. Researcher created following framework to address above questions into framework. All factors which were included in framework selected by researcher because those factors were most repeatedly emphasized by previous studies and considered as most influential.. 18.

(27) Figure 3.1 Research framework Source: by Dr. Cheng Ping Shih. Detailed Explanation of the Framework Internalization Expatriate‟s competency and willingness The ability of an organization to transfer knowledge depends on the skill of the individuals who are directly involved in the transfer process, because ultimately it is the individuals imparting and receiving knowledge (Argyris and Schon, 1978). Therefore expatriates must have high competence and professionalism in order to transfer knowledge to organization. Additionally expatriates must have a genuine desire to contribute in knowledge transfer process. Knowledge transfer requires the willingness of a group or individual to work with others and share knowledge to their mutual benefit.. 19.

(28) Socialization Personal contacts and friendship Knowledge transfer process might occur anywhere if transferor and receipt are willing to it. Personal contacts and friendships outside of the organization are affecting sharing and transferring process greatly.. Organization In order to encourage knowledge transfer organizations must have friendly and supportive environment. This study aims four main organizational factors that affect knowledge transfer process: leadership, technical support, team support and rewards. Leadership support Leaders will have to play an important role in establishing some of the key condition required to facilitate knowledge transfer (Goh, 2002). As role models trough their action leaders can trigger and encourage willingness to share and transfer knowledge. Technical support One of the popular mechanisms of the knowledge transfer is Information Communication Technology. Email, tele-conference, fax, video-conference, internet and different soft wares are the essential tools used in by the organizations in order to transfer and share knowledge. Under the right policy and appropriate utilization, ICT is the major contributor to organization knowledge management system. Team support Expatriates were required to fill the gap in the skill and knowledge where locals lack of experience. Therefore in order to complete successful knowledge transfer local staff or local team must create friendly environment, be enthusiastic and willing to learn and absorb new knowledge contributed by the expatriates. Additionally local staff asked to help expatriates feel accepted, provide support in new culture and assist them in adjustment process. By creating such positive environment for expatriates team or local staff directly contributing to successful knowledge management. 20.

(29) Rewards and incentives Even though it is very difficult to measure, observe and keep a track of knowledge transfer process, organization must do their best to reward and support expatriate who are successfully transferring and delivering new knowledge to the belonging organization. Barlet and Ghoshal (1998) suggest that one way to encourage knowledge transfer is to base rewards to groups. According to previous studies a lack of incentives and rewards has been suggested to be a major barrier to knowledge management (Yao, Kam, & Chan, 2007). Combination Proof of knowledge value In order to trigger openness and willingness of expatriates and recipients, organization must emphasis and deliver clear message that right knowledge makes positive changes in the organization. Within a successful knowledge transfer all the participating sides can benefit. Research has shown that knowledge management is positively related to the reductions in production costs, faster completion of new product development projects, team performance, firm innovation capabilities, and firm performance including sales growth and revenue from the new products and services (Arthur & Huntley, 2005). Culture Multinational organizations has international working environment which involving employees with different nations, cultures and languages. This can pose challenges for knowledge management (Ford & Chan, 2003). When communicating with people from different culture, it is important to remember that culture and communication are strongly connected. An Ernest and Young study identified culture as the biggest impediment to knowledge transfer, citing the inability to change people‟s behaviors as the biggest hindrance to managing knowledge (Warson, 1998). For example from the previous study by Jarvenpaa and Staples (2001) determined that organizational culture rating in solidarity (tendency to pursue shared objectives) will result in a perception of knowledge as being owned by the organization, which, in turn,. 21.

(30) leads to greater levels of knowledge sharing. Therefore culture in the different level will directly impact expatriates on the knowledge transfer process Expatriate’s knowledge Knowledge transfer is a process of systematically organized exchange of information and skills between entities (Wang, 2004). Management of knowledge in organization consists from diverse fragments: managerial skills, marketing skills, HRM skills, corporate culture and values, business strategy thinking, techniques and technological knowledge, manufacturing and exploitation knowledge and product-related knowledge. Main focuses of this study are the three main knowledge of the organization: business strategy and policy, managerial skill and technical skill. Difficulties Knowledge is a power. One major inhibitor of knowledge sharing is that knowledge can be considered a source of power and superiority (Gupta & Govindarajan, 2000). Owing specific knowledge makes individuals valuable to organization and they have some invisible priority and protection. But after successful knowledge transfer that specific knowledge becomes common and individuals lose their priority and protection compared to others. Fear to lose their power individuals might be passive and can refrain knowledge transfer. Employee ability Knowledge may be freely available or accessible in the organizations but the recipients of that knowledge has to be able to use it (Sluzanski, 1996). Employees with low motivation, absorptive capacity and retentive capacity results poor transfer of knowledge. Employee attitude Knowledge transfer requires the willingness of a group or individual to work with others and share knowledge to their mutual benefit (Goh, 2002). It means that employee must have willingness and openness in order to make knowledge transfer possible.. 22.

(31) Research Procedure In the following section procedure of the research is described in details. Figure 3.2 shows procedure. Each step is explained as follows: 1. Identified the research subject: Based on the need of the current economic development which relies on the mining sector researcher decided to address related issues like Human Resource and Knowledge Management in mining sector of Mongolia on current thesis research under the support of thesis advisor. 2. Discussed the literature review: Previous studies and published papers on issues like: expatriate role, knowledge management, mining industry and specifically mining sector in Mongolia was reviewed by the researcher to provide concrete background to the current topic. By reviewing literature researcher tried to present to a reader that current topic is important to study, what are the causing problems and why it must be addressed as research topic. 3. Established research questions: The current research questions were addressed based on the research purpose. Based on the literature review framework was established. 4. Designated the research methods: Qualitative research approach based on the interview has been chosen on order to fulfill research purpose. Open ended questions asked from the participant expatriates. 5. Constructed interview questions: Based on the existing literature researcher constructed open ended interview questions to reveal expatriate perception on knowledge transfer issue. 6. Conducted pilot interview: Pilot interview held to determine whether there are double barred questions or bias confusing questions in the interview. 7. Interviewed actual participants: The participant expatriate selected by convenience and snowballing and quota sampling method. 8. Transcribed result: The process of coding and analyzing the interview data, like the data collection itself, is something of a selective process in terms of a determination of what to add in and what to leave out. Coding provides an efficient method for data-labeling and retrieval, the process is eclectic and there is no right way (Tesch, 1990). 23.

(32) 9. Research Findings: As mentioned earlier research finding identified role of the expatriates in knowledge transfer, defined difficulties and main factors which are affecting knowledge transfer process. 10. Conclusions and Suggestions. Based on the findings of the research, conclusions and suggestions provided to reader. Conclusion and suggestion will help mining companies to better utilize knowledge of the expatriates by creating safe and friendly environment. Identified research subject. Discussed literature review. Established research questions. Designed of research methods Constructed interview questions. Conducted pilot interview. Interviewed actual participants. Transcribed interview result. Conclusions and suggestion. Reflect all the result and summarize Figure 3.2. Research procedure. 24.

(33) Research Method Qualitative research method was chosen to implement current thesis study. Qualitative research method is used in research that is designed to provide an in-depth description of a specific, practice or setting (Mertens, 2005). Current research objectives itself has some difficulty to conduct large scale quantitative research. Because knowledge management, human resource researches related to mining sector specially to Mongolian mining sector almost not existing, it is one of the new research trend and doesn‟t have prosperous understanding therefore qualitative research approach is most appropriate to interpret new practice (Bogdan & Taylor, 1975). In order to clearly respond to research questions first we must consider nature of the research objects. Nature of the knowledge transfer and expatriate issues are very complicated itself many external and internal factors affecting to it. Therefore to avoid bias result with lurking variable researcher will address specific issue by conducting interview with open ended questions in order to fulfill the research objectives. After reviewing literature researcher found out that there are almost no quantitative researches about expatriate‟s role on knowledge transfer issue, which means there are no appropriate quantitative measurements available for the desired result. The other reason why the researcher chooses a qualitative research approach is because access to the sample is complicated. Six to fifteen units of analysis, which provides reliability in qualitative research, is very convenient for the researcher to implement research (Mertens, 2005). Researcher would like to understand knowledge transfer in Mongolian mining company from the perspective of the expatriates. To describe and analyze expatriate role on knowledge transfer ethnographic strategy based on interview were chosen, because ethnography methods is considered to understand the culture, phenomena from and insider and outsider perspective (Patton, 2002). Tedlock (2000) noted that ethnographic strategy is the suitable to reach a better understanding of beliefs, motivations and behaviors of the people in the study. Qualitative research approach with use of open ended interviewing and ethnographic data collection to focus on interpretation, allow the immersion of the researchers in the social setting, and facilitate intersubjective understanding between researcher and participants (Mertents, 2005). 25.

(34) Research Participants For current thesis study researcher target participants based on the following criteria: 1.. Be an English speaking expatriate. 2.. Have working experience in Mongolian mining company. 3.. Position of the expatriate must be managerial or technical ( not a blue collar expatriate). 4.. Willing to participate in this study as a participant Researcher introduced purpose of the thesis study by sending invitation letter. For the. better participation researcher highlighted participants‟ contribution and clearly explained outcomes of the thesis study. To involve expatriates to the interview researcher used nonprobability sampling like: purposive, snowballing sampling and quota samplings method. Purposive sampling a type of the nonprobability sampling in which the units to be observed are selected on the basic of the researcher‟s judgment about which ones will be the most useful or representative. Also it called judgmental sampling. Snowballing sampling a nonprobability sampling methods often employed in field research, whereby each person interviewing may be asked to suggest additional people for interview. Quota sampling a type of nonprobability sampling in which units are selected into sample on the basic of pre-specified characteristics, so that the total sample will have the same distribution of characteristics assumed to exist in the population being studied (Babbie, 2011).Researcher introduced purpose of the research and explain contribution of each participant and after appoint the interview time.. Instrument Main instrument to accomplish data collection of the current research is interview. In qualitative research interviewing is the major source of the qualitative data needed for understanding the phenomenon under the study (Merriam, 2000). DeMarrais (2004) defined interview as process in which a researcher and participants engage in a conversation focused on the questions related to a research study. The main purpose of interview is to obtain a special kind of information. The researcher wants to find out what is: in and on someone else mind (Patton, 2002). Open ended interview questions will be asked to understand knowledge transfer 26.

(35) phenomena from the perspective of participant expatriates itself. Interview questions designed based on the research framework in order to respond to main research questions: 1) What are the roles of the expatriates on knowledge transfer? 2) What type of knowledge is transferred by the expatriates? 3) What are the main factors and obstacles which impacting to expatriate on transfer knowledge? Patton (2002) suggested six types of questions to concern in interview question designing process: experience and behavior, opinion and value, feeling, knowledge, sensory and background. All above mentioned questions types concerned in interview questions design. Different questions assist researcher to have an in- depth understating about participants perception.. Data Collection Four steps followed to in order to conduct interview. 1. Conducted pilot interview. After constructing interview questions researcher conducted pilot interview with two actual participants in order to check are the double barred questions or bias confusing questions asked from interviewee. 2. Corrected interview questions according to the pilot interview result. 3 .Contacted and introduced purpose of research, explained contribution of the expatriates to the study 4. Made appointments with all participant expatriates through email From April-May researcher contacted with fifteen expatriates through email and send official invitation letter and interview questions. From fifteen expatriates researcher conducted ten interviews; five expatriates could not participate due to different reasons, two expatriates belonged to same company rest belonged to different mining companies of Mongolia. During the interview researcher used recorder after each interview transcription was made. Researcher read all the transcription and highlighted responds and tagged to each related research questions and it. 27.

(36) was coded. Each respond which was used in findings has coding I#7page36, number of the interview and page number with actual respond. Table 3.1. Interview Details. Stages. Contents . Before the interview/preparation.  .  . Stage#1.  . Introduction.  . Internalization. . .  . 28. Presentation of the researcher, the research itself and related information Explain purpose of the interview Underline the importance of the interviewee‟s contribution to the research Explain reason why interview will be recorded Explain that the interviewees response will be kept anonymous. How long have been employed by What are the main reasons for your hosting organization? headquarters‟ leaders to make Which doasyou work? decisiondepartment to send you expatriate? What position? Whatisisyour yourcurrent main competitive advantage? Do you think you have a deeper knowledge and professionalism than local co-workers? Please give an example! Do you often voluntarily assist local co-workers when it is necessary? Do you enjoy assisting to local coworkers? Do you regret about time and effort that you spent to share knowledge with local co-workers?.

(37) . Stage #2. Beside working environment how do you socialize with your coworkers?. . How often do you attend sports events, parties, activities organized. Socialization. by your organization? . Do you enjoy time when you socialize with local co-workers?.  How your leadership does support you when you share knowledge?  Do you receive any positive feedback and comment from leadership when you share knowledge with local co-workers?  Does your office provide all the necessary Information Communication Technology Equipment?  Do you have any difficulty in your daily work because of lack of ICT?  How willing are your co-workers to learn new knowledge and experience when you share with them?  How often do you have a request from local co-workers to cooperate, assist and give and idea on assignments?  How do co-workers support you when you share knowledge with them?  Have you ever received any rewards or bonus while you were working in Mongolia? If yes for what?  How would you like to be rewarded for sharing your knowledge and experience?. Stage #3. Organization. 29.

(38) Stage #4. . What is your specialty?. . What is your responsibility in host organizations?. Expatriate Knowledge . What are the most common knowledge and experience that you share with local coworkers?. . In which situation local coworkers need your assistance most?. . Stage #5. . Difficulties. . . . .  30. Do you feel comfortable to share your knowledge? Do you have fear that local co –workers will learn all the necessary knowledge and skill and in the future will not need your assistance? Do co- workers have an ability to absorb knowledge and experience that you are sharing with them? What ability lack most local co-workers in order to receive new knowledge and experience? What do you think how enthusiastic are local coworkers towards new knowledge and experience? Do you have any other obstacle and difficulties when you are sharing knowledge and experience?.

(39) Data Analysis Data analysis is the process of making sense out of the data. Data analysis is a complex process which involves moving back and forth between concrete bits of data and abstract concepts, between inductive and deductive reasoning (Merriam, 2000). The process of coding and analyzing the interview data, like the data collection itself, is something of a selective process in terms of a determination of what to add in and what to leave out. Coding provides an efficient method for data-labeling and retrieval, the process is eclectic and there is no right way (Corbin & Strauss, 2008). An ethnographic strategy of qualitative approach will be chosen as method to analyze role of the expatriates in knowledge transfer in Mongolian mining companies. Ethnographic strategy designed to describe and analyze practice and beliefs of culture and communities (Patton, 2002). Researcher believes that knowledge transfer process associated with organizations and individual‟s culture. Without creating culture in the organization where every member values each other contribution it is impossible to implement knowledge management. Therefore researcher assumes that most suitable strategy to analyze data for current study is ethnographic strategy. A key assumption is that by entering into first hand interaction with people in their everyday lives, ethnographers can reach a better understanding of the beliefs, motivation and behaviors of the people in the study (Tedlock, 2000). The focus of the ethnography is to understand the culture from insider and outsider perspective (Mertens, 1992).. 31.

(40) Data Analysis Procedure In following section data analysis procedure described step by step. 1. Recorded interview respond transcribed manually. 2. Transcribed interview respond carefully readied by researcher. 3. Categorized interview respond into three main research subunits in order to respond to research questions. 4. Send back to participants actual responds used as result in order to make sure that researcher did not add his/her perspective 5. Ethnographic strategy used to analyze data. (Inductive and comparative strategies). 6. Draw out the result from the main subunits in order to fulfill the research purpose. In order to answer research questions all the participant respond categorized in to main three categories: 1.. Role of the expatriate on knowledge transfer. 2.. Type of knowledge is transferred by the expatriates. 3.. Main factors and obstacles are which impacting to expatriate on transfer knowledge.. 32.