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Managing knowledge flows in MNCs: Elastic Employment
Contracts. Edition No. 1
VDM Publishing House, April 2009, Pages: 104
Managing knowledge flows in MNCs: Elastic Employment
Contracts presents an original model for creating an
internal mechanism to prevent knowledge “stickiness”
and promote the internal flow of positive knowledge
between the subsidiaries of a multi-national
corporation. This model, “the Elastic Employment
Contract” integrates well-known variables from the
fields of international management, compensation and
principal-agent theory. This study contributes to
the literature on international management and to
the research methods for studying international
business. Its conclusions bring an interesting
economic result to light and are very relevant for
readers concerned with managerial compensation. The
Elastic Employment Contract described in this book
is an efficient internal mechanism for MNCs that
want to promote a constant flow of knowledge with
positive value between subsidiaries; it will help
them design more effective employment contracts.
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