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Essential competencies for cross-cultural knowledge absorption

Article  in  Journal of Managerial Psychology · October 2005

DOI: 10.1108/02683940510623399

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JMP
20,7 Essential competencies for
cross-cultural knowledge
absorption
578
D. Christopher Kayes and Anna B. Kayes
Department of Management Science, School of Business,
The George Washington University, Washington, DC, USA, and
Yoshitaka Yamazaki
The International University of Japan, Niigata, Japan

Abstract
Purpose – To describe the competencies necessary for managers to effectively engage in
cross-cultural knowledge absorption.
Design/methodology/approach – A comprehensive literature review of knowledge management
and cross-cultural competency research which identifies seven thematic competencies for knowledge
absorption.
Findings – The study identifies and provides examples of seven cross-cultural knowledge
absorption abilities: valuing different cultures, building relationships, listening and observing, coping
with ambiguity, managing others, translating complex ideas, and taking action.
Research limitations/implications – The research relies on a single theory of learning and
integrates research into a single set of assumptions. The research has not been tested empirically.
Practical implications – The paper provides a model to guide managers and others in
organizations through successful knowledge transfer and absorption efforts including training,
development, selection and project planning.
Originality/value – The paper integrates diverse and extensive literature on knowledge absorption
into a single framework based on how managers learn from experience and suggests competencies for
managing absorption efforts.
Keywords Experiential learning, Management skills, Workplace learning, Knowledge transfer
Paper type General review

Effective knowledge absorption rests in the ability of individuals to generate, gather,

organize and apply new knowledge. These abilities, or competencies, result from a
person’s ability to develop relationships and translate ideas across boundaries.
Effective knowledge absorption across diverse national and ethnic cultures proves to
be an important aspect of management innovation and success as organizations
become increasingly international in their reach.
In this article, we draw on a model of cross-cultural competencies (Yamazaki and
Kayes, 2004) to identify the seven competencies for successful knowledge absorption
across cultures. We suggest, consistent with information processing approaches to
Journal of Managerial Psychology knowledge absorption (Cohen and Levinthal, 1990), that knowledge absorption is a
Vol. 20 No. 7, 2005
pp. 578-589
process of learning from experience. We extend this thinking to understand knowledge
q Emerald Group Publishing Limited absorption as an interpersonal process of developing and managing relationships that
0268-3946
DOI 10.1108/02683940510623399 lead to knowledge absorption.
 Our primary goal is to identify abilities that will aid individuals in effectively Cross-cultural
absorbing knowledge and translating that learning to improve organizational knowledge
knowledge absorption efforts. We suggest that cross-cultural knowledge absorption
requires valuing individual and cultural differences. We emphasize the role of absorption
language in the knowledge absorption process. Implications are drawn for training,
development, evaluation and planning knowledge absorption efforts.
579
Knowledge absorption
In this section, we explain our basic theoretical assumptions about the knowledge
absorption process in the context of extant literature on knowledge absorption. We
detail our approach, which is based on experiential learning theory (Kayes, 2002; Kolb,
1984), and contrast this with the information processing approach (Lindsay and
Norman, 1977).

Knowledge absorption as information processing

We understand knowledge absorption to be the capacity to gather and process
knowledge external to the organization (Cohen and Levinthal, 1990). Cohen and
Levinthal (1990) suggest that an organization’s “prior related knowledge” provides the
foundation for recognizing, acquiring and applying new knowledge. Absorption
capacity relies heavily on an organization’s investment in research and development,
its ability to gain insights from current operations and its ability to gather information
from marketing efforts (Cohen and Levinthal, 1990, p. 128).
An organization’s capacity for knowledge absorption relies on the ability of its
individual members to learn from experience and to apply this knowledge in the
context of an organization. Cohen and Levinthal rightfully acknowledge that the ability
to learn from experience and, thus, the ability to increase organizational knowledge
absorption capacity rests on individual skills. The specific individual skills necessary
for increasing knowledge absorption, however, have yet to be described.
The literature on knowledge absorption has conceived of individual learning from
the perspective of information processing (e.g. Lindsay and Norman, 1977). This
perspective views learning as an objective process where preexisting knowledge
structures become represented as corresponding cognitive representations. Successful
knowledge absorption is measured by the degree to which these preexisting knowledge
structures become accurately represented as cognitive models. In this formulation,
structure precedes language, where language acts as a reflection of a preexisting
knowledge structure.
We generally agree with this premise that the prior experience of individuals is the
key to understanding the organizational knowledge absorption process. However, we
base our approach on a different set of assumptions regarding the nature of learning
and knowledge. We view knowledge from the view point of experiential learning
theory (Kolb, 1984). The next section elaborates on this approach and contrasts it with
the information-processing model.

Knowledge absorption: an experiential approach

Experiential learning theory (Kolb, 1984) describes learning as the process of
transforming experience into new knowledge. Based on the works of philosopher John
Dewey, social-psychologist Kurt Lewin, and others, experiential learning theory
JMP describes learning as a fourfold process beginning with experience. Experience serves
20,7 as the basis for reflective observation, which in turn leads to abstract
conceptualization. Abstract conceptualization serves as the basis for active
experimentation, which then leads to another experience, and the process of learning
starts again.
The unique aspect of experiential learning lies in the idea that individuals must
580 develop specialized abilities to manage each of the four aspects of learning. For
example, managing concrete experience requires interpersonal abilities, managing
reflective observation requires perceptual abilities, managing abstract
conceptualization requires cognitive abilities and active experimentation requires
behavioral abilities. Thus, knowledge absorption as a process of individual learning
involves moving through each of these phases in a cyclical fashion, calling on
specialized abilities at each phase of the cycle as depicted in Figure 1.

Language and experience

Kayes (2002) and Kayes and Kayes (2003) recently extended experiential learning
theory to highlight the role of language. According to Kayes, the structure of language
needs to be accounted for when describing experience because language forms the “raw
material” of experience. Thus, learning itself can be understood as a process of language
acquisition and transformation. This so-called “post-structural” approach to learning
suggests that learning from experience is a subjective process of attaching meaning to
language and expressing experiences in term of available language. Language
acquisition is important to learning because it extends the variability of ways that
experiences can be understood. In turn, language is never an exact replication of
experience but a means to describe experience with available symbolic tools.
This poststructural experiential learning approach suggests that language creates
structure, in contrast to the information-processing model, which suggests that
structure precedes language. The distinction is more than just academic because it
suggests a fundamentally different approach to knowledge absorption in practice.
The distinction may best be illustrated through the root metaphor (Morgan, 1986) of
each approach. The information processing approach conjures images of the individual
learner as a computer, where small errors in coding and decoding can result in a faulty
absorption. A computer relies on decision rules and a limited set of functions to process
knowledge. The experiential approach imagines the individual learner as an artist, using

Figure 1.
Experiential learning cycle
the available media (e.g. language) to express experiences in a manner that engages, Cross-cultural
educates and communicates to others. The experiential image relies on interpretation, knowledge
emotions and intuitions more than logical decision rules to process knowledge.
From the perspective of experiential learning, knowledge absorption is the process absorption
whereby new knowledge is created and absorbed through new experiences.
Cross-cultural knowledge absorption results from interactions with others from
different cultures that require new understanding and interpretations. Knowledge 581
absorption is seen as primarily a process of learning from experience. Language serves
as the basis for such learning. In particular, we view knowledge absorption from an
interpersonal perspective, where knowledge is gathered, processed and put into use
through interpersonal relationships.

A competency-based model of cross-cultural knowledge absorption

We have noted general differences between the information processing and
experiential approaches. We believe that there is general agreement between the two
approaches that organizational knowledge absorption is largely a process of learning
from individual experience. In this section, we focus attention on the specific individual
competencies essential for the knowledge absorption process. We begin with a general
overview of what we mean by cross-cultural competencies and provide details on our
methodology.

Cross-cultural competencies
“Managerial competencies” is a catch-all term that designates the skills, abilities,
knowledge, cognitive processes and communication techniques that allow a manager
to be successful at specific tasks (Boyatzis, 1982). While research originally focused on
identifying and developing a variety of competencies, now it tends to focus on
understanding and managing one’s emotions and influencing others (Goleman et al.,
2002).
Our position is consistent with this approach:
.
It views cross-cultural knowledge absorption as primarily a process of
interpersonal understanding. Interpersonal understanding provides the basis for
gathering new knowledge (Yamazaki and Kayes, 2002).
.
It focuses on the role of language to develop and increase capacity for knowledge
absorption (Kayes, 2002).
.
It views competencies as learned rather than inherited traits.

We contend that competencies are often organization- or culture-specific but that a

general framework of competencies can aid in understanding, managing and
developing the knowledge absorption process. For example, universal typologies of
leadership (House et al., 2002) and values (Schwartz and Bilsky, 1990) provide valuable
starting points for understanding differences in the knowledge absorption process.
When understood as general frameworks that can be applied to specific cultural
contexts, universal typologies such as the one we present on knowledge absorption
competencies provide the first step in gaining a deeper appreciation for the
complexities of culture. In turn, a deeper appreciation of these complexities provides
the basis for developing skills to navigate the knowledge absorption process.
JMP Cross-cultural knowledge absorption competencies
20,7 An experiential learning-based model
Figure 2 depicts a model of cross-cultural knowledge absorption competencies that
integrates the research on cross-cultural competencies, experiential learning and
knowledge absorption. The model assumes that individual cross-cultural knowledge
absorption, as a process of knowledge creation, relies on the manager’s ability to
582 manage a diverse and often conflicting set of learning processes. The model depicts
knowledge absorption under the dimensions of both process and content. Knowledge
processing is depicted horizontally and involves two factors: the degree to which
knowledge is either internal or external to the individual. Knowledge content is
depicted vertically and depicts the degree to which knowledge is either new or extant.
The model suggests that the cross-cultural knowledge absorption process requires
four sets of competencies:
(1) Generating (new internal knowledge) involves creating new knowledge by
cultivating and remaining open to new experiences to create situations in which
knowledge can be obtained. The generating process of knowledge absorption
involves three specific competencies: valuing different cultures, building
relationships within the host culture.
(2) Gathering (new internal knowledge) involves taking account of existing
opportunities and identifying existing sources of underutilized knowledge.
Gathering may include reconfiguring existing sources of knowledge to fit new
circumstances. The gathering process of knowledge absorption involves one
specific competencies: listening and observing.
(3) Organizing (extant internal knowledge) involves putting existing knowledge
into a framework or context so that it can be actionable. The organizing process
of knowledge absorption involves two specific competencies: coping with
ambiguity and managing others.

Figure 2.
Cross-cultural knowledge
absorption competencies
 (4) Applying (extant external knowledge) involves putting knowledge to work to Cross-cultural
solve problems, create opportunities or generate change. The applying process knowledge
of knowledge absorption involves two specific competencies: translating
complex ideas and taking action. absorption
The combination of each dimension results in a knowledge absorption process along
with corresponding competencies. The seven competencies arise from our prior 583
research (Yamazaki and Kayes, 2004) on cross-cultural learning. We conducted an
extensive literature review of nearly 100 empirically based research articles to identify
competencies related to successful cross-cultural learning in expatriates. This resulted
in the identification of over 70 different competencies, which we in turn categorized
into seven different clusters based on experiential learning theory. The model depicts a
generalized understanding of cross-cultural awareness that can be used to guide
specific applications to cultures based on their general value orientation. The seven
competencies are detailed in the next section.

Competencies for cross-cultural knowledge absorption

Valuing different cultures. This competency involves understanding the complexities
of cultural norms and how they contribute to new knowledge. A number of cultural
typologies exist (Schwartz and Bilsky, 1990) to guide an initial understanding of
cultural differences. One widely cited typology presented by House et al. (2002)
suggests that culturally embedded values lie along nine dimensions: uncertainty
avoidance, power distance, societal collectivism, in-group collectivism, egalitarianism,
assertiveness, future orientation, performance orientation, and human orientation.
However, success in the knowledge absorption process requires a more specific
application of these general frameworks. In other words, valuing different cultures
goes beyond simply knowing the abstract differences between cultures to appreciating
how these differences are expressed in day-to-day situations.
One expatriate described how he learned to understand the differences between social
and work relations while in Korea. He was surprised and puzzled the first time that his
co-workers, members of the South Korean military, were argumentative, hard nosed
negotiators who often resorted to anger and resentment in meetings yet became
hospitable and charming in the social occasions that followed the work day. It was not
enough to simply understand the differences between a collective versus individual
culture; he had to learn to appreciate how these differences impacted him on a daily basis.
One technique that helped individuals value another culture was reading novels or
stories written by and highly valued in another culture. These writings provided
insight into the values of the host culture and provided an opportunity to show interest
in the host culture when engaged in conversations with host culture members.
A variety of studies from diverse host and home cultures have shown that valuing
different cultures is an important success factor. For example, Cleveland et al. (1969)
described how showing empathy for a host culture was positively related to successful
US expatriate adaptation. Cui and Awa (1992) had similar findings with expatriates
from diverse cultures working in China.
Building relationships within the host culture. Successful knowledge absorption
requires creating the possibility of creating new knowledge. New knowledge is
generated by coming into contact and, thus, creating new experiences with others. This
JMP involves putting a human face on culture. Many expatriates we read about in our
20,7 research found it easy to isolate themselves from the host culture. This seemed
especially true for expatriates from the US and Britain. Living in western hotels or
expatriate communities provided a sense of comfort and familiarity in a host culture.
Yet, it was the relationships with individuals from the local cultures that seemed to
provide the most opportunities for learning and thus knowledge absorption.
584 One expatriate we interviewed for our research explained the importance of
relationships for knowledge absorption. She stated that if you didn’t create
relationships overseas, you couldn’t get the information you needed. She continued
that it was important to build positive relationships and get people on your side.
Often, the network of relationships emerged from within the organization, but
acquiring other types of information required going outside the organization. Either
way, it seemed imperative to get a guide from inside the host culture. The internal host
contact was someone who was skillful at understanding the host culture and knew how
to get things done.
Building relationships often resulted in misunderstandings, as one expatriate quickly
found. The expatriate was conversing with a member of small South American country.
The local expressed a keen knowledge of his area’s local and national politics. When the
expatriate suggested that he go into politics, she was quickly met with a scowl; she
hadn’t realized that politicians were viewed unfavorably in the host country. In response,
the expatriate quickly apologized and began to explain the differences in how politicians
were perceived in her country, the US, versus the South American country.
Several studies have shown that building relationships with local cultures is an
important attribute for success for a variety of expatriate cultures (see Thomson and
English, 1964; Hawes and Kealey, 1979).
Listening and observing. Absorbing knowledge across cultures requires individuals
to carefully observe the host culture and its local practices and to understand the
rationale behind the practices. Listening and observing require patience in the face of
pressing demands. One manager we interviewed for our research worked in many
different cultures over his 20 years of expatriate experience. He explained that to gain
the respect of those he managed, he would simply observe the current environment.
During the first few weeks of an overseas assignment, his job was to learn the
management culture. This manager had difficulty pronouncing the names of locals
because the names were not based on his language. Rather than mispronounce names,
the manager learned how to pronounce names after several weeks. It was a good thing
as well, since during the initial period of intense observation he learned that the
language was a strong source of national pride.
One element that emerged from the literature as well as our interviews was that
recognizing and understanding nonverbal cues was key to successful cross-cultural
knowledge absorption. Watching how people interact, the closeness of their physical
distance, the expressions on their faces and the manner in which they engage can
provide clues. Looking for nonverbal cues was less important in formal meetings
because the structure of interaction was almost always predetermined, and one simply
had to follow along like a well-prepared script. Unstructured social events provide both
a source of frustration and an opportunity for absorbing new knowledge. Listening and
observation competencies were among those most likely to be important in
cross-cultural knowledge efforts according to Yamazaki and Kayes (2004).
 Coping with ambiguity. One official at the US Department of State responsible for Cross-cultural
diplomatic relationships with other governments explained how ambiguity was part of knowledge
the job. State Department officials typically spend two to three years in an overseas
assignment. Speaking of the ability to cope, this official stated that successful officials absorption
demonstrate a comfort with ambiguity. It’s as if they don’t even experience or
recognize the ambiguity. They don’t see problems as ambiguous; they usually just see
them as new. In fact, what some people see as ambiguity, State Department officials see 585
as stimulating according to this official. The official added that these people don’t
really think outside the box because they don’t see the box to begin with. It appears
that people who thrive on new experiences don’t interpret situations as a problem but
as a challenge.
A variety of studies conducted over a quarter of a century with US Peace Corps
volunteers working abroad has shown that workers who were able to cope with
ambiguity were among the most successful (e.g. Hautaloma and Kaman, 1975).
Translating complex ideas. Translating complex ideas is central to the knowledge
absorption process. Translation relies on a grasp and command of the local language
and its meaning. The degree of proficiency required to effectively absorb knowledge
remains in question; however, it is clear that without an in-depth knowledge of the host
language, deep absorption of knowledge is not likely. Those who lack an in-depth
language capability must rely on translators to interpret conversations, and that limits
the quality of the relationships formed. As one expatriate we interviewed concluded,
you can be successful without the language, but it is hard to develop deep relationships
if you rely on someone to interpret for you.
Research confirms that learning the host country language is important for
improving knowledge absorption (e.g. Dunbar, 1992). However, language is important
because it allows meaningful relationships to be developed, as Dean and Popp (1990)
showed in a study of French expatriates working in the USA.
Taking action. Taking action emerged as a success factor in our review of the
research and showed up in a particular way in the interviews we conducted. For
example, one person we interviewed commented on action during a crisis: “How you
perform in a crisis will determine your success. People want to know you can act and
cope in a crisis, and everyone must know that you will act for the group and not just
yourself.”
Kealey (1989), for example, found that a group of Canadian technical advisors
working in Asia, Africa, Latin America and the Caribbean were likely to demonstrate
an action orientation to their jobs.
Managing others. This competency involves internally and externally managing the
host people and other expatriates in organizations. The internal management skill
serves to resolve conflicts between local employees and expatriates and to maintain
close relationships between them. One experienced Japanese expatriate who was
assigned as the president of a Japanese subsidiary in the USA revealed in our interview
that he acted as a moderator to alleviate tensions between the Japanese expatriates and
the American managers in his firm. This skill is indeed related to successful
performance of expatriates in foreign subsidiaries where the host culture differs
greatly from the home one. Black and Porter (1991, p. 105), for example, found that
American managers in Hong Kong were more successful if they showed more
integrated behavior (e.g. “maintaining a closely knit organization”).
JMP The ability to manage skills internal to the organization was important. The ability
20,7 to manage concerns across cross-cultural boundaries was also important. For example,
individuals needed to effectively managing external linkages between an overseas
subsidiary and the headquarters office. This skill involves resolving conflicts and
establishing good relationships between them. Expatriates are required to properly
balance local responsiveness to subsidiaries’ needs and global integration stemming
586 from headquarters’ demands. One Japanese middle manger who worked for a Japanese
manufacturer in the USA told us that he first needed to see overall pictures of the
headquarters’ request and his subsidiary’s capacity and reaction to it and then had to
act as a crucial interface through which to adjust their mutual needs towards levels
acceptable to both. Several researchers such as Cleveland et al. (1969) and Black et al.
(1999) reported the importance of this competency for expatriates to succeed in
overseas assignments.

Implications for cross-cultural knowledge absorption research and

practice
The model presented here provides the basis to direct several aspects of the knowledge
absorption process including training and assessment, monitoring the success of
knowledge absorption processes, and planning knowledge absorption efforts. The
model may be extended to assist in general training in cross-cultural values and other
long-term coaching and developmental efforts. We begin by reviewing the implications
of these competencies for understanding values.

Values as determinants of behavior

Since it is based on learning and individual experience, knowledge absorption is
related to individual values. Values determine how we evaluate behavior and what we
deem appropriate. Thus, we contend that competencies must be consistent with the
values of a culture. The implication is that application of the competencies will, in a
large part, be a factor of the specific culture in which the competencies are
demonstrated and the nature of the knowledge being absorbed.
A study of Japanese managers working in the US serves as an example. The study
monitored different cohorts of Japanese managers and showed that, over time, the
managers moved from a primary emphasis on generating competencies to an emphasis
on action taking and organizing competencies. The movement was expected, as
Japanese culture emphasizes primarily concrete or interpersonal competencies
embedded in building relationships while US culture emphasizes competencies
related to abstract concepts and ideals. Thus, to adapt, these Japanese managers were
required to develop competencies related to translating and coping. This example
shows how the development of cross-cultural competencies must always be considered
within a specific host environment (Yamazaki, 2004).

Training and education

This model can be applied to predeparture cross-cultural training. Studies report that
training programs for expatriates have varied effectiveness. Despite a host of studies
looking at selection and retention of potential executives for overseas assignments
(Spreitzer et al., 1997), little work has been done to understand the implication of
training on cross-cultural knowledge absorption.
 One area for further understanding is the content of the materials presented in Cross-cultural
predeparture training. For instance, providing an overview of company policies and knowledge
procedures would not be sufficient for expatriates, nor would a focus just on the
technical skills needed to accomplish a job. These technical skills might include the use absorption
of a particular software program or an understanding of the host country’s labor rates
used in calculations for an assembly line process. Beyond these things, it seems that
effective cross-cultural knowledge absorption efforts require a focus on development of 587
learning competencies prior to departure.
A variety of educational interventions may help expatriates’ knowledge absorption.
Classroom training and predeparture technology training are both popular methods of
cross-cultural training that can be adapted to knowledge based content. This
technology-based training could encompass videotapes, on-line self-paced tutorials or a
series of web-based informational resources on customs and business practices. An
important consideration when selecting an educational method is how it fosters the
essential cross-cultural learning competencies detailed in this study. While a videotape
or website may best be suited for communicating policies and procedures, an executive
coach, an interactive workshop, or a series of self-assessments and feedback may be
more appropriate for developing competencies.

Planning
In the area of planning, this model has applications related to repatriation,
communication networks, and selection for overseas assignments.
First, “re-entry,” or repatriation, has been highlighted by studies as one of the
most significant costs to an organization. Estimated costs for failed repatriation
efforts are between $250,000 and $500,000 per assignment (Mervosh and
McClenahan, 1997). Failure to repatriate can stem from something quite simple,
such as an expatriate’s loss of visibility in the organization throughout the
overseas assignment. The failure may also stem from the lack of organizational
value placed on the new set of cross-cultural skills that the employee developed.
Organizations can also unknowingly support the failure through general lack of
planning, such as placing expatriates back in the appropriate position when they
return to their organization.
Communication networks provide another critical step in planning for
competency building and knowledge absorption efforts. The growing trend to
provide coaching and mentoring may be a good place to start the expatriation and
repatriation process. Formal planning for these mentors is important to the success
of the expatriate both domestically and abroad. Domestically, mentors assist
expatriates in transferring their knowledge back to the home culture upon return.
This is a longer-term effort that gets at the very goal of knowledge absorption
efforts. Mentorship in the new host country is equally important. Identifying and
providing a person who can function as the formal catalyst for knowledge
absorption increases the likelihood that expatriates learn from the host culture and
transition successfully.
Third, while many organizations have formal selection processes, recent research
suggests that most organizations do not have a planned selection process for expatriate
assignments and continue to select expatriates on an ad hoc basis (Boles, 1997;
Mervosh and McClenahan, 1997). Understanding what competencies are critical for
JMP expatriate success provides a benchmark of the knowledge, skills and abilities that
20,7 should be considered in addition to technical skills when recruiting internally for
expatriates to join a host culture.
This paper has identified seven competencies related to cross-cultural knowledge
absorption from extant literature on expatriate adaptation. Experiential learning
theory provides a useful and comprehensive model to organize these competencies. We
588 suggest that cross-cultural knowledge absorption is primarily a process of learning
from individual experience and translating that experience into organizational
knowledge. Organizations that support these competencies, through training and
development efforts, are more likely to realize the benefits of cross-cultural knowledge
absorption efforts. Further, organizations that consider these competencies in the
selection, evaluation and repatriation efforts of managers are more likely to produce
successful knowledge absorption efforts.

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