2016
DOI: 10.1002/tie.21845
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Towards a Framework of Reverse Knowledge Transfer by Emerging Economy Multinationals: Evidence from Chinese MNE Subsidiaries in the United States

Abstract: This article extends the research on knowledge transfer by emerging‐economy multinationals (EEMs) by exploring the determinants of successful reverse knowledge transfer (RKT) in Chinese enterprises operating in the United States. Building upon organizational evolution and learning literature, we propose a model linking strategic asset‐seeking motivations, headquarters (HQ) control, and subsidiary age to RKT. The model is empirically tested in the context of Chinese enterprises in the United States and further … Show more

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Cited by 21 publications
(21 citation statements)
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“…As noted earlier, we believe that domestic market provides a rich context for Chinese multinationals preparing themselves for coping with the threats and capturing the opportunities in the internationalization process. When competing with multinationals in the developed market globally, Chinese multinationals are always characteristic as latecomers that lack world‐leading innovation capabilities and the experience in managing international operations (Peng et al, ; Yang et al, ). First, in order to improve innovation capabilities, prior studies have identified diverse catching‐up strategies (Deng, ).…”
Section: Discussionmentioning
confidence: 99%
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“…As noted earlier, we believe that domestic market provides a rich context for Chinese multinationals preparing themselves for coping with the threats and capturing the opportunities in the internationalization process. When competing with multinationals in the developed market globally, Chinese multinationals are always characteristic as latecomers that lack world‐leading innovation capabilities and the experience in managing international operations (Peng et al, ; Yang et al, ). First, in order to improve innovation capabilities, prior studies have identified diverse catching‐up strategies (Deng, ).…”
Section: Discussionmentioning
confidence: 99%
“…C hinese firms have aggressively moved onto the global stage. However, without world leading new technology or know-how (Liang, Lu, & Wang, 2012 ;Peng, Qin, Chen, Cannice, & Yang, 2017 ) and lacking the experience in managing international operations (Yang, Yang, & Doyle, 2013 ), Chinese latecomer firms have faced many underestimated challenges, such as integrating various sources of knowledge to achieve innovation catch-up (Fan, 2006 ), engaging in business practices in a distinctly different institutional environment (Deng, 2013 ;Yang & Stoltenberg, 2014 ). Fortunately, China, one of the large and complex emerging economies, provides an excellent trial-and-error space for Chinese firms (Shi et al, 2012 ), and thus prepares them for collaborating with different kinds of partners and operating under a different institutional environment.…”
Section: Introductionmentioning
confidence: 99%
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“…A Chinese immigration system similar to that of the US may be established in the coming years. Third, as latecomers to many markets, the newly minted Chinese MNEs aggressively seek to leapfrog the technology innovation frontier by spending heavily in R&D and by actively investing in advanced economies to acquire key strategic assets, resources and leading-edge technologies (Clegg et al, 2016;Fu et al, 2018;Li et al, 2016;Li et al, 2017;Peng et al, 2016). Guided by the "Go Out Policy" (走出去), China's outbound foreign direct investment exceeded inbound foreign direct investment for the first time in 2014.…”
Section: Resolving the Tension And Encouraging Innovationmentioning
confidence: 99%
“…Reverse diffusion of knowledge has become an area of growing importance, especially for MNCs operating in multiple locations, which requires the ability to extract the benefits of being local and global simultaneously (Bengoa & Kaufmann, ; Brem & Wolfram, ; Govindarajan & Ramamurti, ; Hsu & Iriyama, ; Lee & McNamee, ; Peng, Qin, Chen, Cannice, & Yang, ; Prabakar, ; Van der Boor, Oliveira, & Veloso, ). Distance can be a significant constraint to the full production and exploitation of knowledge within an MNC.…”
Section: Introductionmentioning
confidence: 99%