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

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. © 2003 Elsevier Inc. All rights reserved.