3. Research Methodology and Results
Stage 1 of the DEMATEL Method involves identifying the factors that impact the decision to transfer managerial know-how and understanding how these factors interrelate. To accomplish this, I developed the direct relation matrix (
Table 2), based on the impact of the factors as reported by the 10 managers interviewed and using the comparison scale outlined in
Table 1.
Stage 1: The process of constructing the direct relationship matrix, as shown in
Table 2, involves identifying and mapping the interactions between the various factors that influence the transfer of managerial know-how. This matrix helps to visually represent the degree of influence each factor has on the others, providing a clear framework for understanding the complex relationships that guide the decision-making process.
Table 2.
Direct Relationship Matrix.
Table 2.
Direct Relationship Matrix.
| |
Education |
Foreign Languages |
Personal Mobility |
Control Level |
| Education |
0 |
3 |
1 |
1 |
| Foreign Languages |
2 |
0 |
3 |
2 |
| Personal Mobility |
2 |
3 |
0 |
2 |
| Control Level |
2 |
2 |
1 |
0 |
Research Hypotheses:
H1: The education level of the workforce positively influences the transfer of managerial know-how.
H2: Proficiency in foreign languages enhances the transfer of managerial knowledge, especially in international contexts.
H3: Personal mobility, facilitated by factors like EU membership, significantly supports the informal exchange of managerial expertise.
H4: The level of control within an organization affects the efficiency of managerial know-how transfer, with higher control levels either facilitating or hiding the process.
Where:
It is the sixth column that allows us to identify the maximum value, enabling us to proceed to the next step of the method: normalizing the direct-relation matrix using the following formula:
The key factors, as identified from the perspective of the managers interviewed, are as follows:
Education (Factor 1 = F1): This refers to the level of education within the workforce, which plays a critical role in determining how well managerial knowledge is understood, applied, and transferred within the organization. A highly educated workforce is typically better equipped to adapt to new knowledge and integrate it into their practices.
Foreign Languages (Factor 2 = F2): The ability to communicate in foreign languages is crucial in a globalized business environment. This factor highlights the importance of language proficiency for the transfer of managerial know-how, as it allows for smoother communication and knowledge exchange across international borders.
Personal Mobility (Factor 3 = F3): Personal mobility refers to the ease with which individuals can move across regions or countries, often facilitated by factors such as economic integration (e.g., EU membership). This factor is important for the informal transfer of managerial knowledge, as it enables managers to gain exposure to new environments, share best practices, and collaborate globally.
Control Level (Factor 4 = F4): This factor refers to the degree of control within an organization, particularly the authority that managers must implement changes and influence the transfer of knowledge. A higher level of control may streamline decision-making processes, making it easier to adopt and disseminate new managerial practices.
Each of these factors is crucial in understanding the dynamics of transfer of managerial knowledge within organizations and can have varying degrees of influence on the process.
Table 3.
Presentation of key factors.
Table 3.
Presentation of key factors.
| Factor |
Educa-tion = F1 |
Foreign langua-ges = F2 |
Personal mobility = F3 |
Control level = F4 |
|
| Educa-tion = F1 |
0 |
3 |
1 |
1 |
= 5 |
| Foreign langua-ges = F2 |
2 |
0 |
3 |
2 |
= 7 |
| Personal mobility = F3 |
2 |
3 |
0 |
2 |
= 7 |
| Control level = F4 |
2 |
2 |
1 |
0 |
= 5 |
By applying formula (1), the normalized initial direct-relation matrix X is calculated as follows.
Table 4.
Normalized Initial Direct-Relation Matrix - X.
Table 4.
Normalized Initial Direct-Relation Matrix - X.
| F1 |
0 |
0.43 |
0.14 |
0.14 |
| F2 |
0.29 |
0 |
0.43 |
0.29 |
| F3 |
0.29 |
0.43 |
0 |
0.29 |
| F4 |
0.29 |
0.29 |
0.14 |
0 |
| F1 |
0 |
0.43 |
0.14 |
0.14 |
The third stage involves calculating the total-relation matrix (T). To do this, we need to apply the following formula, which considers the direct and indirect relationships between the factors, enabling a comprehensive understanding of their interconnectedness. This step allows us to aggregate the effects of all factors, both direct and through their influences on other factors, resulting in the total-relation matrix.:
The first step of this stage is to compute the inverse of the matrix, which is necessary for further calculations in the process. This step allows us to determine how the factors relate to one another in a more comprehensive way, enabling the derivation of subsequent matrices.
Table 5.
Presentation of the matrix.
Table 5.
Presentation of the matrix.
| |
F1 |
F2 |
F3 |
F4 |
| F1 |
1 |
-0.43 |
-0.14 |
-0.14 |
| F2 |
-0.29 |
1 |
-0.43 |
-0.29 |
| F3 |
-0.29 |
-0.43 |
1 |
-0.29 |
| F4 |
-0.29 |
-0.29 |
-0.14 |
1 |
The process begins by taking the transpose of the Q matrix, referred to as Qt (as seen in
Table 6). This transpose is an essential step in deriving the Q* matrix, which is outlined in the following calculations.
Table 6.
Transpose of Q Matrix (Qt).
Table 6.
Transpose of Q Matrix (Qt).
| |
F1 |
F2 |
F3 |
F4 |
| F1 |
1 |
-0.2857 |
-0.2857 |
-0.2857 |
| F2 |
-0.4285 |
1 |
-0.4285 |
-0.2857 |
| F3 |
-0.1428 |
-0.4285 |
1 |
-0.1428 |
| F4 |
-0.1428 |
-0.2857 |
-0.2857 |
1 |
Starting with the transpose of the Q matrix (Qt), we move on to compute the Q matrix* (
Table 7). This involves calculating the determinant of several matrices, as represented in various tables, where each element of the Q* matrix is derived from specific determinants, such as d11, d12, d13, and so on.
For instance, d11 is the determinant of the matrix shown in
Table 8, and similarly, each determinant for d12, d13, d14, etc., is computed using its respective matrix.
Here is an example of the calculation for d11 (determinant of the matrix in
Table 8):
Table 7.
Matrix for d11 Calculation.
Table 7.
Matrix for d11 Calculation.
| |
F1 |
F2 |
F3 |
| F1 |
1 |
-0.4285 |
-0.2857 |
| F2 |
-0.4285 |
1 |
-0.1428 |
| F3 |
-0.2857 |
-0.2857 |
1 |
The determinant calculation for d11 is:
d11 = 1 - 0.12242 - 0.01748 - (0.08162 + 0.04079 + 0.18361) = 0.55408.
Thus, the determinant of this matrix (denoted d11) is 0.55408.
This determinant represents the impact or "weight" of the relationships captured by the matrix in the context of the DEMATEL method, specifically regarding the interactions between the factors.
The matrix T is represented in the form shown in Table 27 below."
Table 7.
The matrix T.
| Factor |
F1 |
F2 |
F3 |
F4 |
| F1 |
t11 |
t12 |
t13 |
t14 |
| F2 |
t21 |
t22 |
t23 |
t24 |
| F3 |
t31 |
t32 |
t33 |
t34 |
| F4 |
t41 |
t42 |
t43 |
t44 |
Where:
The calculations for the elements of the matrix T are as follows:
-
For t11:
t11=(0.4285×0.59228)+(0.59228×0.1428)+(0.46066×0.1428)=0.40414t11 = (0.4285 \times 0.59228) + (0.59228 \times 0.1428) + (0.46066 \times 0.1428) = 0.40414t11=(0.4285×0.59228)+(0.59228×0.1428)+(0.46066×0.1428)=0.40414
-
For t12:
t12=(0.97093×0.4285)+(0.74689×0.1428)+(0.55604×0.1428)=0.60209t12 = (0.97093 \times 0.4285) + (0.74689 \times 0.1428) + (0.55604 \times 0.1428) = 0.60209t12=(0.97093×0.4285)+(0.74689×0.1428)+(0.55604×0.1428)=0.60209
-
For t13:
t13=(0.4285×0.57575)+(0.1428×0.79979)+(0.1428×0.39804)=0.41775t13 = (0.4285 \times 0.57575) + (0.1428 \times 0.79979) + (0.1428 \times 0.39804) = 0.41775t13=(0.4285×0.57575)+(0.1428×0.79979)+(0.1428×0.39804)=0.41775
-
For t14:
t14=(0.4285×0.43436)+(0.1428×0.52645)+(0.1428×0.65836)=0.3553t14 = (0.4285 \times 0.43436) + (0.1428 \times 0.52645) + (0.1428 \times 0.65836) = 0.3553t14=(0.4285×0.43436)+(0.1428×0.52645)+(0.1428×0.65836)=0.3553
-
For t21:
t21=(0.2857×0.62543)+(0.4285×0.59228)+(0.46066×0.2857)=0.56408t21 = (0.2857 \times 0.62543) + (0.4285 \times 0.59228) + (0.46066 \times 0.2857) = 0.56408t21=(0.2857×0.62543)+(0.4285×0.59228)+(0.46066×0.2857)=0.56408
-
For t22:
t22=(0.2857×0.60205)+(0.4285×0.74689)+(0.2857×0.55604)=0.6509t22 = (0.2857 \times 0.60205) + (0.4285 \times 0.74689) + (0.2857 \times 0.55604) = 0.6509t22=(0.2857×0.60205)+(0.4285×0.74689)+(0.2857×0.55604)=0.6509
-
For t23:
t23=(0.2857×0.44409)+(0.4285×0.79979)+(0.2857×0.39804)=0.5833t23 = (0.2857 \times 0.44409) + (0.4285 \times 0.79979) + (0.2857 \times 0.39804) = 0.5833t23=(0.2857×0.44409)+(0.4285×0.79979)+(0.2857×0.39804)=0.5833
-
For t24:
t24=(0.2857×0.39476)+(0.4285×0.52645)+(0.2857×0.65836)=0.52645t24 = (0.2857 \times 0.39476) + (0.4285 \times 0.52645) + (0.2857 \times 0.65836) = 0.52645t24=(0.2857×0.39476)+(0.4285×0.52645)+(0.2857×0.65836)=0.52645
-
For t31:
t31=(0.2857×0.62543)+(0.4285×0.59228)+(0.2857×0.46066)=0.56375t31 = (0.2857 \times 0.62543) + (0.4285 \times 0.59228) + (0.2857 \times 0.46066) = 0.56375t31=(0.2857×0.62543)+(0.4285×0.59228)+(0.2857×0.46066)=0.56375
-
For t32:
t32=(0.2857×0.60205)+(0.4285×0.97093)+(0.2857×0.55604)=0.57487t32 = (0.2857 \times 0.60205) + (0.4285 \times 0.97093) + (0.2857 \times 0.55604) = 0.57487t32=(0.2857×0.60205)+(0.4285×0.97093)+(0.2857×0.55604)=0.57487
-
For t33:
t33=(0.2857×0.44409)+(0.4285×0.43436)+(0.2857×0.65836)=0.50109t33 = (0.2857 \times 0.44409) + (0.4285 \times 0.43436) + (0.2857 \times 0.65836) = 0.50109t33=(0.2857×0.44409)+(0.4285×0.43436)+(0.2857×0.65836)=0.50109
-
For t34:
t34=(0.2857×0.39476)+(0.4285×0.43436)+(0.2857×0.65836)=0.48699t34 = (0.2857 \times 0.39476) + (0.4285 \times 0.43436) + (0.2857 \times 0.65836) = 0.48699t34=(0.2857×0.39476)+(0.4285×0.43436)+(0.2857×0.65836)=0.48699
-
For t41:
t41=(0.2857×0.62543)+(0.2857×0.59228)+(0.1428×0.46066)=0.41367t41 = (0.2857 \times 0.62543) + (0.2857 \times 0.59228) + (0.1428 \times 0.46066) = 0.41367t41=(0.2857×0.62543)+(0.2857×0.59228)+(0.1428×0.46066)=0.41367
-
For t42:
t42=(0.2857×0.60205)+(0.2857×0.97093)+(0.1428×0.74689)=0.45347t42 = (0.2857 \times 0.60205) + (0.2857 \times 0.97093) + (0.1428 \times 0.74689) = 0.45347t42=(0.2857×0.60205)+(0.2857×0.97093)+(0.1428×0.74689)=0.45347
-
For t43:
t43=(0.2857×0.44409)+(0.2857×0.57575)+(0.1428×0.79979)=0.40557t43 = (0.2857 \times 0.44409) + (0.2857 \times 0.57575) + (0.1428 \times 0.79979) = 0.40557t43=(0.2857×0.44409)+(0.2857×0.57575)+(0.1428×0.79979)=0.40557
-
For t44:
t44=(0.2857×0.39476)+(0.2857×0.43436)+(0.1428×0.52645)=0.31204t44 = (0.2857 \times 0.39476) + (0.2857 \times 0.43436) + (0.1428 \times 0.52645) = 0.31204t44=(0.2857×0.39476)+(0.2857×0.43436)+(0.1428×0.52645)=0.31204
These calculated values represent the matrix T, which is an essential part of the overall analysis for determining the relationships between the different factors affecting managerial know-how transfer.
Table 8.
The Comprehensive Relationship Matrix
Table 8.
The Comprehensive Relationship Matrix
| Factor |
F1 |
F2 |
F3 |
F4 |
| F1 |
0,40414 |
0,60209 |
0,41775 |
0,3553 |
| F2 |
0,56408 |
0,6509 |
0,5833 |
0,52645 |
| F3 |
0,56375 |
0,57487 |
0,50109 |
0,48699 |
| F4 |
0,41367 |
0,45357 |
0,40557 |
0,31204 |
Stage 4 involves creating a causal diagram. To achieve this, we need to compute D, the sum of the rows, and R, the sum of the columns. These sums, represented as D and R, are derived from the total relation matrix using the following equations:
Next, the horizontal axis vector, referred to as "driving power," is calculated by adding D and R together. On the other hand, the vertical axis, known as "dependence," is derived by subtracting R from D. Typically, if (D - R) is positive, the criterion is categorized as part of the "driver" group. Conversely, if (D - R) is negative, the criterion is classified as part of the "effect" or "dependent" group, indicating that it is influenced by other criteria rather than being a source of influence. The causal diagram is then created by plotting the values of (D + R) against (D - R).
Figure 1.
Causal Relationship Diagram Causal Relationship Diagram. Source: [
9].
Figure 1.
Causal Relationship Diagram Causal Relationship Diagram. Source: [
9].
Table 9.
Creation of the Causal Diagram: Plotting (D + R) Against (D - R).
Table 9.
Creation of the Causal Diagram: Plotting (D + R) Against (D - R).
| Factor |
D |
R |
D-R |
D+R |
| F1 |
1,77928 |
1,94564 |
-0.16636 |
3.72492 |
| F2 |
2,32473 |
2,28143 |
0.11043 |
4.60616 |
| F3 |
2,2167 |
1,90771 |
0.30899 |
4.12441 |
| F4 |
1,58485 |
1,68078 |
-0.09593 |
3.26563 |
D+R reflects the level of influence a criterion holds, showing the extent of its connection with other criteria. A higher D+R value signifies a stronger relationship with the other factors. In this case, foreign languages stand out as the most influential criterion, as it demonstrates the highest degree of connection with the remaining three factors.
The causal diagram illustrates the interconnections between the various factors. Specifically, Education (F1) and Control Level (F4) are identified as driving factors that contribute to perceived risks. On the other hand, Foreign Languages (F2) and Personal Mobility (F3) emerge as key contributors to perceived benefits. This visual representation demonstrates the direction and nature of influence, highlighting how each factor impacts the others within the framework of managerial know-how transfer. Thus, the diagram visually confirms that Education and Control Level lead to risks, while Foreign Languages and Personal Mobility foster benefits, aligning with the proposed hypotheses.
The causal diagram and the relationships between the factors can help address the hypotheses presented:
-
H1: The education level of the workforce positively influences the transfer of managerial know-how.
o Based on the causal diagram; Education (F1) is positioned as a significant factor influencing the transfer process. As a driving factor contributing to perceived risks, Education can indirectly enhance managerial know-how transfer by ensuring that the workforce is knowledgeable and capable of managing and navigating risks. Therefore, H1 is supported by the diagram, as Education plays an essential role in the knowledge transfer process.
-
H2: Proficiency in foreign languages enhances the transfer of managerial knowledge, especially in international contexts.
o The diagram shows that Foreign Languages (F2) have a strong influence on the perceived benefits, which aligns with the hypothesis that foreign language proficiency can facilitate the transfer of managerial knowledge in international contexts. This connection between Foreign Languages and perceived benefits supports H2, demonstrating that language skills enhance communication and knowledge sharing across borders.
-
H3: Personal mobility, facilitated by factors like EU membership, significantly supports the informal exchange of managerial expertise.
o Personal Mobility (F3) is depicted as influencing perceived benefits in the causal diagram, indicating that it plays a crucial role in the exchange of knowledge. With increased mobility, managers are more likely to engage in informal exchanges of managerial expertise. Therefore, H3 is confirmed as personal mobility supports the free-flowing exchange of know-how.
-
H4: The level of control within an organization affects the efficiency of managerial know-how transfer, with higher control levels either facilitating or hindering the process.
o the diagram indicates that Control Level (F4) is a driving factor for perceived risks. A high control level could either enhance the efficiency of managerial know-how transfer by creating structured processes or hinder it by limiting flexibility and information flow. This dual influence supports the hypothesis that the control level can either facilitate or restrict the transfer process, confirming H4.
In summary, the relationships highlighted in the causal diagram align with the proposed hypotheses, supporting the idea that education, foreign language proficiency, personal mobility, and control levels all play important roles in the transfer of managerial know-how