MNC knowledge transfer, subsidiary absorptive capacity, and HRM

Abstract

Based on a sample of 169 subsidiaries of MNCs operating in USA, Russia, and China, this paper investigates the relationship between MNC subsidiary HRM practices, absorptive capacity and knowledge transfer. The paper makes two key contributions. First, the paper examines the relationship between the application of specific HRM practices and the level of the absorptive capacity. Second, the paper suggests that absorptive capacity should be conceptualized as being comprised of two dimensions-ability and motivation. Further, results indicate that the interaction of ability and motivation (absorptive capacity) significantly facilitate transfer of knowledge from other parts of the MNC.-2 -

Virtuelle Auslandsentsendungen

“…The use of these instruments for knowledge transfer has been intensively analyzed in recent studies (e.g., Minbaeva et al, 2003). One important result is that foreign delegations may enhance knowledge flows within…”

“…Besides, we included subsidiary size as smaller subsidiaries may be more innovative (Minbaeva et al, 2003) and may therefore apply new concepts such as virtual delegates earlier than larger ones. We measured size as the number of employees working in the subsidiary.…”

“…To control for possible industry effects, we distinguished between 1 = "service and trade" and 0 = "manufacturing". These control variables have been widely used in empirical studies of traditional assignments (e.g., Minbaeva et al, 2003) and may be expected to influence the use of virtual assignments as well.…”

“…This number was subtracted from 2007 (the year of the study). We included subsidiary size since smaller subsidiaries may be more innovative than larger ones (Minbaeva et al, 2003) and may, therefore, apply new concepts earlier than their counterparts. We measured this variable by the number of employees working in the subsidiary.…”

“…We measured this variable by the number of employees working in the subsidiary. These control variables have been widely used in empirical studies of traditional expatriations (e.g., Minbaeva et al, 2003;Tan & Manhoney, 2002 and may be expected to influence the use of virtual expatriations as well.…”