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How Does Knowledge Transfer from Foreign Subsidiaries Affect Parent Companies' Innovative Capacity

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Author Info

  • Lucia Piscitello
  • Larissa Pabbiosi

Abstract

The paper addresses reverse knowledge transfer (RKT) from foreign subsidiary to parent company. Specifically, it aims at investigating to what extent the effectiveness of such a transfer is influenced by: (i) the organizational mechanisms employed for transferring knowledge; (ii) the subsidiary’s role, its autonomy, and its relationships with the local context. The empirical analysis considers 162 transfers of best practices possessed by foreign subsidiaries and transferred back to their Italian parent companies. Results confirm that the impact of RKT on the parent company’s innovativeness is greater when: (i) person-based mechanisms are employed for transferring knowledge; (ii) subsidiaries are competence-creating; and (iii) knowledge developed by subsidiaries benefits from local external linkages.

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File URL: http://www3.druid.dk/wp/20060022.pdf
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Bibliographic Info

Paper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 06-22.

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Date of creation: 2006
Date of revision:
Handle: RePEc:aal:abbswp:06-22

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Web page: http://www.druid.dk/

Related research

Keywords: External linkages; organizational mechanisms; parent company's innovativeness; reverse knowledge transfer; subsidiary’s characteristics;

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Cited by:
  1. Bernhard Dachs & Bernd Ebersberger, 2013. "The Effects of Production Offshoring on R&D and Innovation in the Home Country," FIW Research Reports series, FIW V-001, FIW.
  2. Wixted, Brian, 2006. "Cluster Complexes: A Framework for Understanding the Internationalisation of Innovation Systems," MPRA Paper 846, University Library of Munich, Germany.

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