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

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.

[1]  Daniel A. Levinthal,et al.  ABSORPTIVE CAPACITY: A NEW PERSPECTIVE ON LEARNING AND INNOVATION , 1990 .

[2]  M. Firth,et al.  The diffusion of managerial accounting procedures in the People's Republic of China and the influence of foreign partnered joint ventures , 1996 .

[3]  K. Law,et al.  Managing localization of human resources in the PRC: a practical model , 1999 .

[4]  E. Mansfield,et al.  Technology Transfer to Overseas Subsidiaries by U. S.-Based Firms , 1980 .

[5]  K. Eisenhardt.  Building theories from case study research , 1989, STUDI ORGANIZZATIVI.

[6]  I. Nonaka.  A Dynamic Theory of Organizational Knowledge Creation , 1994 .

[7]  Karel Cool,et al.  Asset Stock Accumulation and the Sustainability of Competitive Advantage: Reply , 1989 .

[8]  J. Bonache,et al.  Knowledge Transfer and the Management of Expatriation , 2001 .

[9]  Ingmar Björkman,et al.  Outsiders in the Middle Kingdom: Expatriate managers in Chinese-Western joint ventures , 1994 .

[10]  J. Spender.  Making knowledge the basis of a dynamic theory of the firm , 1996 .

[11]  D. Teece.  Technology Transfer by Multinational Firms: The Resource Cost of Transferring Technological Know-How , 1977 .

[12]  R. Gulati.  Does Familiarity Breed Trust? The Implications of Repeated Ties for Contractual Choice in Alliances , 1995 .

[13]  Ben L. Kedia,et al.  Cultural Constraints on Transfer of Technology Across Nations: Implications for Research in International and Comparative Management , 1988 .

[14]  Ying Fan.  The Transfer of Western Management to China , 1998 .

[15]  T. Jick.  Mixing Qualitative and Quantitative Methods: Triangulation in Action. , 1979 .

[16]  G. Huber.  Organizational Learning: The Contributing Processes and the Literatures , 1991 .

[17]  B. Kogut,et al.  Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology , 1992 .

[18]  S. Gomulka.  Growth, innovation, and reform in Eastern Europe , 1986 .

[19]  R. Grant.  Toward a Knowledge-Based Theory of the Firm,” Strategic Management Journal (17), pp. , 1996 .

[20]  Anil K. Gupta,et al.  Knowledge Flows and the Structure of Control Within Multinational Corporations , 1991 .

[21]  Manucher Farhang.  The Human Resource Dimension of International Technology Transfer: Identification and Analysis of Training Needs , 1999 .

[22]  Andrew C. Inkpen.  Learning, knowledge acquisition, and strategic alliances , 1998 .

[23]  J. Child,et al.  Strategies of cooperation: managing alliances, networks, and joint ventures , 2000 .

[24]  Dale E. Zand.  Trust and Managerial Problem Solving , 1972 .

[25]  U. Zander.  Exploiting a technical edge : voluntary and involuntary dissemination of technology , 1991 .

[26]  S. Hymer,et al.  The International Operations of National Firms: A Study of Direct Foreign Investment , 1976 .

[27]  Donald A. Schön,et al.  Organizational Learning: A Theory Of Action Perspective , 1978 .

[28]  Joanne Roberts.  From Know-how to Show-how? Questioning the Role of Information and Communication Technologies in Knowledge Transfer , 2000 .

[29]  R. Yin.  Yin, Robert K., Case Study Research: Design and Methods, 2nd ed. Newbury Park, CA: Sage, 1994. , 1994 .

[30]  G. Hamel.  Competition for competence and interpartner learning within international strategic alliances , 1991 .

[31]  Anil K. Gupta,et al.  Knowledge flows within multinational corporations , 2000 .

[32]  M. Gordon,et al.  PUBLICATION RECORDS AND TENURE DECISIONS IN THE FIELD OF STRATEGIC MANAGEMENT , 1996 .

[33]  S. Young,et al.  Technology Transfer to China Through Foreign Direct Investment , 1996 .

[34]  Marjorie A. Lyles,et al.  Absorptive capacity, learning, and performance in international joint ventures , 2001 .

[35]  A. Strauss,et al.  The discovery of grounded theory: strategies for qualitative research aldine de gruyter , 1968 .

[36]  J. Slocum,et al.  Building cooperative advantage: Managing strategic alliances to promote organizational learning , 1997 .

[37]  J. Barney.  Firm Resources and Sustained Competitive Advantage , 1991 .

[38]  Eric W. K. Tsang.  Managerial Learning in Foreign-invested Enterprises of China , 2001 .

[39]  Marjorie A. Lyles,et al.  Explaining IJV survival in a transitional economy through social exchange and knowledge-based perspectives , 2000 .

[40]  Marjorie A. Lyles,et al.  Knowledge acquisition from foreign parents in international joint ventures: an empirical examination in the Hungarian context , 1996 .

[41]  Karel Cool,et al.  Asset stock accumulation and sustainability of competitive advantage , 1989 .