Research Article
The Empirical Study on The Determinants of Reverse Knowledge Transfer - From The Foreign Subsidiary Perspective -
Hankuk University of Foreign Studies
Published: January 2014 · Vol. 43, No. 3 · pp. 993-1025
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Abstract
The strategic role of foreign subsidiary in MNC is very important in these days. In thiscontext, a key managerial problem pertains to identifying effective knowledge flows from thesubsidiary to the parent company; i.e. reverse knowledge transfer(RKT). RKT may enhancethe competitive advantage of MNC as local knowledge created at subsidiary level can strengthenthe parent company's ability to define and influence global strategies accordingly as well asimprove processes and performance. Acknowledgement of the importance of RKT for a MNC hasresulted in some valuable research trying to understand this phenomenon. However, sincethese contributions investigate RKT, there remains uncertainty as to determinants of RKT. In this study, we investigate the factors that may influence RKT from the foreign subsidiaryperspective. Therefore, we suggest three level factors as determinants of RKT; (1) subsidiarylevel factors(marketing knowledge creation, knowledge transfer willingness), (2) MNC parentcompany level factors(absorptive capacity, learning willingness) and (3) relationship level factorsbetween parent company and subsidiary(formalization integration mechanisms, socializationmechanisms, social capital, knowledge relevance). After the review of exant studies, we designa research model and propose hypotheses. Based on the collected 253 foreign subsidiaries' datain Korea, the proposed model is testified with the SPSS 15.0 is supported. The analysis indicates that subsidiary level factors, MNC parent company level factors, andsocialization mechanisms, social capital, knowledge relevance of relationship between parentcompany and subsidiary level factors can positively influence on RKT. However, among relationship between parent company and subsidiary level factors, formalization integration mechanismshas no effect on RKT. The result discuss the implication to motivate RKT in the context ofMNC global competitiveness.
