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An integrated model of knowledge transfer from MNC parent to China subsidiary

Author

Listed:
  • Wang, Pien
  • Tong, Tony W.
  • Koh, Chun Peng

Abstract

Based on an empirical study of 62 firms, this paper develops a two-stage model describing knowledge transfer from MNCs to their China subsidiaries. In the first stage, the model proposes factors affecting the extent of knowledge contributed by an MNC to its China subsidiary. In the second stage, the model proposes factors affecting the extent of knowledge acquired by the China subsidiary from its MNC parent. Knowledge contributed by the parent to the subsidiary is affected by two groups of factors: parent's capacity to transfer knowledge and parent's willingness to transfer knowledge. Holding constant knowledge contributed by the parent, knowledge acquired by the subsidiary from its parent is determined by two groups of factors: subsidiary's capacity to acquire knowledge and subsidiary's intent to acquire knowledge. Implications for future research and management practitioners are discussed.

Suggested Citation

  • Wang, Pien & Tong, Tony W. & Koh, Chun Peng, 2004. "An integrated model of knowledge transfer from MNC parent to China subsidiary," Journal of World Business, Elsevier, vol. 39(2), pages 168-182, May.
  • Handle: RePEc:eee:worbus:v:39:y:2004:i:2:p:168-182
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    References listed on IDEAS

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    Cited by:

    1. Yue Wang & Stephen Nicholas, 2007. "The formation and evolution of non-equity strategic alliances in China," Asia Pacific Journal of Management, Springer, vol. 24(2), pages 131-150, June.
    2. Tanut Waroonkun & Rodney Stewart, 2008. "Modeling the international technology transfer process in construction projects: evidence from Thailand," The Journal of Technology Transfer, Springer, vol. 33(6), pages 667-687, December.
    3. Andersson, Ulf & Dasí, Àngels & Mudambi, Ram & Pedersen, Torben, 2016. "Technology, innovation and knowledge: The importance of ideas and international connectivity," Journal of World Business, Elsevier, vol. 51(1), pages 153-162.
    4. Jing Yang & Frank Tipton & Jiatao Li, 2011. "A review of foreign business management in China," Asia Pacific Journal of Management, Springer, vol. 28(3), pages 627-659, September.
    5. Liu, Xiaohui & Gao, Lan & Lu, Jiangyong & Wei, Yingqi, 2015. "The role of highly skilled migrants in the process of inter-firm knowledge transfer across borders," Journal of World Business, Elsevier, vol. 50(1), pages 56-68.
    6. Dellestrand, Henrik & Kappen, Philip, 2011. "Headquarters Allocation of Resources to Innovation Transfer Projects within the Multinational Enterprise," Journal of International Management, Elsevier, vol. 17(4), pages 263-277.
    7. Chien-Hsing Wu & Shu-Chen Kao, 2016. "Appraisal of Knowledge Object Use via a Three-Phase Flow Profile," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 15(02), pages 1-22, June.
    8. Sajjad Jasimuddin & Jun Li & Nicholas Perdikis, 2015. "Linkage between geographic space and knowledge transfer by multinational enterprises: a structural equation approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 769-795, May.
    9. Lin Cui & Fuming Jiang, 2010. "Behind ownership decision of Chinese outward FDI: Resources and institutions," Asia Pacific Journal of Management, Springer, vol. 27(4), pages 751-774, December.
    10. Michailova, Snejina & Mustaffa, Zaidah, 2012. "Subsidiary knowledge flows in multinational corporations: Research accomplishments, gaps, and opportunities," Journal of World Business, Elsevier, vol. 47(3), pages 383-396.
    11. Dimitratos, Pavlos & Liouka, Ioanna & Young, Stephen, 2009. "Regional location of multinational corporation subsidiaries and economic development contribution: Evidence from the UK," Journal of World Business, Elsevier, vol. 44(2), pages 180-191, April.
    12. repec:eee:iburev:v:26:y:2017:i:5:p:896-907 is not listed on IDEAS
    13. Chua, Ai Ling & Pan, Shan L., 2008. "Knowledge transfer and organizational learning in IS offshore sourcing," Omega, Elsevier, vol. 36(2), pages 267-281, April.
    14. repec:spr:manint:v:51:y:2011:i:5:d:10.1007_s11575-011-0092-1 is not listed on IDEAS
    15. Maimunah Ismail & Sayang Syamira Sobri & Nurul Afiqah Zulkifly & Siti Raba'ah Hamzah & Eriko Yamato, 2016. "Knowledge Transfer Between Expatriates And Host Country Nationals: Contribution Of Individual And Social Capital Factors," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 7(2).
    16. Williams, Christopher & Lee, Soo Hee, 2016. "Knowledge flows in the emerging market MNC: The role of subsidiary HRM practices in Korean MNCs," International Business Review, Elsevier, vol. 25(1), pages 233-243.
    17. Ingo Liefner & Yehua Dennis Wei & Gang Zeng, 2013. "The Innovativeness and Heterogeneity of Foreign-Invested High-Tech Companies in Shanghai," Growth and Change, Wiley Blackwell, vol. 44(3), pages 522-549, September.
    18. Kostova, Tatiana & Marano, Valentina & Tallman, Stephen, 2016. "Headquarters–subsidiary relationships in MNCs: Fifty years of evolving research," Journal of World Business, Elsevier, vol. 51(1), pages 176-184.
    19. Eric W. K. Tsang, 2016. "How Existing Organizational Practices Affect the Transfer of Practices to International Joint Ventures," Management International Review, Springer, vol. 56(4), pages 565-595, August.
    20. Chen, Chung-Jen & Hsiao, Yung-Chang & Chu, Mo-An, 2014. "Transfer mechanisms and knowledge transfer: The cooperative competency perspective," Journal of Business Research, Elsevier, vol. 67(12), pages 2531-2541.
    21. repec:spr:manint:v:55:y:2015:i:1:d:10.1007_s11575-014-0230-7 is not listed on IDEAS
    22. Peltokorpi, Vesa, 2017. "Absorptive capacity in foreign subsidiaries: The effects of language-sensitive recruitment, language training, and interunit knowledge transfer," International Business Review, Elsevier, vol. 26(1), pages 119-129.
    23. Diego Quer & Enrique Claver & Laura Rienda, 2007. "Business and management in China: A review of empirical research in leading international journals," Asia Pacific Journal of Management, Springer, vol. 24(3), pages 359-384, September.
    24. Randi Lunnan & Youzhen Zhao, 2014. "Regional headquarters in China: Role in MNE knowledge transfer," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 397-422, June.
    25. Jiang, Xu & Li, Yuan, 2008. "The relationship between organizational learning and firms' financial performance in strategic alliances: A contingency approach," Journal of World Business, Elsevier, vol. 43(3), pages 365-379, July.

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