Reverse knowledge transfer from subsidiaries to MNCs in Korea: size matters

Abstract

This paper attempts to identify the effects of knowledge transfer capacity and relational capital on the reverse transfer of local market information from subsidiaries within MNC networks. In particular, we try to examine the different influences of those determinants in organizations of different sizes. By using Spearman rank order correlation coefficients, we find that the key drivers for large subsidiaries are knowledge development capability, subsidiary autonomy and trust between subsidiaries and MNCs. The key drivers for medium-size firms are subsidiary willingness, trust and organizational distance. In the case of small firms, reverse knowledge transfer is driven by knowledge development capability, subsidiary autonomy and socialization mechanisms. We believe that these findings offer valuable implications for both MNC managers and also for theory.