How to Motivate Subsidiaries to Share Useful Know-How with Others in the Group

Building competence takes time and money. Subsidiaries of multinational corporations are therefore going to focus more on building competence that helps them, and not worry about other subsidiaries. However, parent companies can motivate subsidiaries to develop internationally useful competence by: making the creation of such competence part of a subsidiary's mission, increasing the interface among subsidiaries, and granting them operational (but not strategic) autonomy.