110 Organisational Knowledge Transfer in Modular Production Networks: Experiences from Brazil Gustavo A C Guzman University of Nottingham, UK Federal University of Minas Gerais, Brazil gustavo.guzman@nottingham.ac.uk John Wilson University of Nottingham, UK j.wilson@nottingham.ac.uk Abstract. This paper argues that focussing attention only on knowledge management issues is not enough to understand the subject of knowledge transfer in the international knowledge transfer process. Rather, it is necessary to address both soft management aspects and implementation issues. Based on a case study of an electronics contract manufacturing firm, this paper concludes by advancing a theoretical framework blending soft, change and knowledge management issues. This contributes towards an improved understanding of the transfer process of organizational knowledge in international manufacturing. Introduction The ‘transfer’ process of organisational knowledge involves the full comprehension of both micro and macro level forces that influence its performance. At the micro level, the understanding of specific plant operational goals and enterprise strategies, the adequacy of the production model of the recipient plant to the concept to be applied, the existing human capability, the degree of abstraction inherent in the concept, as well as the technical and social assumptions embedded in the concept itself, all seem important. At the macro level, both country-specific institutions (for example, laws, regulations, norms and values) and international global forces (for example, competition, trade agreements) might either foster or constrain (or both) cross-border knowledge transfer. While the above list of factors is hardly new, it seems possible that the way micro and macro factors blend to influence the transfer of organisational knowledge is still not fully understood, especially with regard to how ‘soft’ issues (that is, intangible) and reality are linked with ‘hard’ (that is, objective) results (Beer, 2001). Low wages combined with low training, for example, do not contribute to developing a