Search phase and the openness effects in MNEs

In this work we focus on the search phase that precedes the knowledge transfer process. We argue that it is important to closely analyze this phase as, the common understanding of problem developed in this phase has a significant impact on the stages that follow. In this analysis we focus on two key factors: openness and the richness of media of communication that foster the openness within Multinational Corporation (MNC) environment. Furthermore, we also try to explore the degree of knowledge transfer due to an open environment. Openness is a change that can be induced at the MNE level by the Headquarter (HQ), the effects of this change are behavioral in nature and can be observed at the subsidiary level in the type of media of communication used.