Transferring subsidiary knowledge in the global learning context

• Published in: Journal of knowledge management Vol. 15; no. 3; pp. 478 - 496
• Main Authors: Miao, Yuzhe, Choe, Soonkyoo, Song, Jaeyong
• Format: Journal Article
• Language: English
• Published: Kempston Emerald Group Publishing Limited 01.01.2011
• Subjects: Communication systems; Cooperation; Design engineering; Foreign subsidiaries; Host country; Hypotheses; Information sharing; Knowledge; Knowledge management; Learning; Multinational companies; Multinational corporations; Networks; Organizational learning; Parents; Regression; Studies; Subsidiaries; South Korea; Learning; South Korea; Multinational companies; Subsidiaries; Knowledge transfer
• ISSN: 1367-3270; 1758-7484
• DOI: 10.1108/13673271111137448

Purpose - The purpose of this paper is to explore organizational factors that affect the transfer of subsidiary knowledge to both parent companies and peer subsidiaries.Design methodology approach - The hypotheses are tested using multivariate regression, based on a survey of 81 foreign subsidiaries in South Korea.Findings - The findings show that organizational factors that affect the transfer of subsidiary knowledge differ according to whether the recipient is the parent or the peer subsidiary. Subsidiary-to-parent knowledge flow is facilitated by establishing efficient formal mechanisms such as an expatriation policy, a subsidiary performance evaluation system, etc., whereas knowledge transfer to peer subsidiaries is enhanced by the length of a subsidiary's operation period and the frequency of its managers' communications with other managers in peer subsidiaries.Practical implications - This analysis suggests that managers of multinational companies should apply different approaches in managing these two distinct knowledge flow patterns in the MNC network.Originality value - This study offers new insights into the challenges of global learning by highlighting the difficulty of transferring subsidiary knowledge to peer subsidiaries through formal organizational apparatuses.