Abstract:

Research and Development represent a set of activities and processes practiced by both institutions and enterprises. Often foreign and national governments offer attractive tax credits. Enterprises strive to benefit from these incentives as they endeavour to innovate products and services with the aspiration to become the ‘leading edge’ within their respective industry.  To meet the demands and challenges of a global market, many multinationals have established Research and Development centres throughout their territory. This specific part of the enterprise copes not only with several knowledge-related issues but also the risks that stem from a diversity of cultural dimensions; let alone the impact of virtual teams.  In many cases, these issues are unique and depend largely on the nature and context of the business. In addition, the literature demonstrates that theoretical and empirical research on global Research and Development joint undertakings emphasises the importance of trust as the foundation for collaborative relationships. The more the team members trust each other, the greater the likelihood that they will share knowledge, information, and other assets of strategic value with their colleagues located in other geographical locations. However, the mere nature of trust, how it is gained and merited, is culturally based. Even once a level of trust has been established, the debate then moves onto its maintenance and factors that if ignored, create roadblocks to effective knowledge sharing.