The impacts of inward knowledge transfer and absorptive capacity on the turnover of host country nationals in MNE subsidiaries: a multilevel modeling approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jin Suk Park ◽  
Jae Yoon Chang ◽  
Taehun Lee
Keyword(s):  
Knowledge Transfer ◽  
Host Country ◽  
Absorptive Capacity ◽  
Critical Factor ◽  
Negative Consequences ◽  
Content Type ◽  
Host Country Nationals ◽  
Nonlinear Trends ◽  
Multilevel Survival Analysis ◽  
Actual Turnover

Purpose This study aims to find how the turnover of host country nationals (HCNs) would be affected by the knowledge transfer from a headquarter to a subsidiary. Knowledge transfer in a multinational corporation (MNC) has been discussed as a critical factor in the MNC’s success. Because HCNs are essential to synergizing with a new knowledge inflow during this knowledge transfer process, their turnover entails negative consequences such as knowledge loss. Design/methodology/approach This paper empirically tests the unbalance between knowledge received (KR) and absorptive capacity (AC) as the most critical organizational predictor by using the secondary longitudinal records and survey data of 4,915 employees. Multilevel survival analysis is used to calculate the individuals’ turnover hazard. Findings While finding that the primary effect of transferred knowledge is to reduce turnover, the study demonstrates the unbalance between a subsidiary’s AC and KR increases the likelihood of HCNs’ turnover within the organization. The authors also recognize the possibility of nonlinear trends of KR and AC on the turnover hazard. Originality/value The authors answer how knowledge transfer shapes a subsidiary’s work environment to prevent or increase turnover, which has been barely examined for HCNs who comprise the crucial demographic group in knowledge transfer. To enhance the originality further, this study empirically observes the actual turnover of HCNs with a conceptually comprehensive view incorporating both learning and political approaches.

scholarly journals Predictors of knowledge transfer between expatriates and host country nationals

2019 ◽  
Vol 29 (2) ◽  
pp. 199-215
Author(s):  
Nurul Afiqah Zulkifly ◽  
Maimunah Ismail ◽  
Siti Raba’ah Hamzah
Keyword(s):  
Knowledge Transfer ◽  
Host Country ◽  
Cultural Intelligence ◽  
Shared Vision ◽  
Social Capital Theory ◽  
Feedback Seeking ◽  
Capital Theory ◽  
Content Type ◽  
Host Country Nationals ◽  
Seeking Behavior

Purpose The purpose of this paper is to investigate the influences of cultural intelligence, feedback-seeking behavior and shared vision as a mediator on bi-directional knowledge transfer involving expatriates and host country nationals (HCNs). Design/methodology/approach This paper integrates the signaling theory, the social capital theory and the anxiety and uncertainty theory in investigating the relationships between predictors and knowledge transfer in a bi-directional manner. The participants of the study were 125 expatriate-HCN pairs of MNCs and local organizations in the areas of Klang Valley, Malaysia. Findings Shared vision was found to significantly mediate the influences of cultural intelligence and feedback-seeking behavior on knowledge transfer as perceived by the respective respondents. Originality/value Co-existence between expatriates and HCNs leads to many organizational outcomes including knowledge transfer. This paper additionally provides theoretical and practical implications to human resource practices.

The categorization of expatriates and the support offered by host country nationals

2016 ◽  
Vol 4 (1) ◽  
pp. 18-43 ◽  
Author(s):  
Shirley C. Sonesh ◽  
Angelo S. DeNisi
Keyword(s):  
Host Country ◽  
Small Sample Size ◽  
Small Sample ◽  
Content Type ◽  
Host Country Nationals ◽  
Group Members ◽  
Expatriate Assignments ◽  
The Right ◽  
National Stereotypes

Purpose – Although several authors have suggested that host country nationals (HCNs) play an important role in the management of expatriates (e.g. Toh and DeNisi, 2003; Farh et al., 2010), research has also suggested that this relationship is not always good, and the flow of critical information to expatriates can be limited. This is especially true when HCNs categorize the expatriates as “out-group” members. The purpose of this paper is to examine potential determinants of categorization decisions as well as potential outcomes related to expatriate socialization. Design/methodology/approach – The paper employs a dyadic survey approach to determine the antecedents to expatriate categorization and HCN socialization behaviors from the perspective of both the expatriate and HCN. Findings – The results of survey data from 65 expatriate-HCN dyads indicated that expatriate ethnocentrism and the salience of the expatriates’ nationality were important predictors of categorization, but that categorization was related to only one dimension of socialization. However, affect was found to play a role in predicting socialization behaviors. Research limitations/implications – There is potential selection bias since expatriates chose HCNs as respondents, but results suggested this was not a serious problem. Other limitations include a relatively small sample size and the fact that a number of contextual issues such as national stereotypes and MNC strategy, are not controlled for. Practical implications – Implications of these findings for the successful management of expatriate assignments include sending over expatriates with the right relational skills, and those low in ethnocentrism, rather than just the right technical skills. Originality/value – The present study was one of the first to empirically test the potential role of categorization in the process of socialization.

Comprehending a knowledge framework as a source of dynamic capabilities in IJVs through PLS-SEM

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Madhavi Kapoor ◽  
Vijita Aggarwal
Keyword(s):  
Knowledge Transfer ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Global Market ◽  
Innovation Performance ◽  
International Joint Ventures ◽  
Mediation Effect ◽  
Equation Modeling ◽  
Content Type

Purpose This study aims to investigate the relationship among knowledge transfer enablers, knowledge transfer process, absorptive capacity and innovation performance in the context of Indian international joint ventures (IJVs). These elements are woven with the thread of dynamic capabilities theory (DCT) into an integrated framework. Design/methodology/approach Data analysis is conducted on a quantitative survey of 196 IJVs with partial least squares structural equation modeling as the statistical technique. Findings Co-learning strategy, collaborative trust culture, information technology-based resources and systems and organizational structural design are found to be significant knowledge transfer enablers. Absorptive capacity has a complementary partial mediation effect on the positive relationship between knowledge transfer and innovation performance of Indian IJVs. Research limitations/implications The study has pioneered in explicating the criticality of IJV’s internal dynamics to cope with the global market dynamism in a much needed Indian context. Practitioners must focus on building dynamic capabilities in IJVs to make them sustainably competitive, as proposed and evaluated by this study. Further, IJV managers need to strategize their resources, routines and structure dynamically to foster knowledge transfer and innovativeness. Originality/value The comprehensive model on DCT offered by this study is rare to match in literature with a completely new context, which is the need of the hour.

scholarly journals Early global Trotters and their entrepreneurial employment practices

2016 ◽  
Vol 8 (3) ◽  
pp. 378-384 ◽  
Author(s):  
Qianqian Chai ◽  
Cherry Wun Mei Cheung ◽  
Caleb Kwong
Keyword(s):  
Host Country ◽  
Multinational Enterprises ◽  
Design Methodology ◽  
Wage Differential ◽  
Governance Structure ◽  
Employment Practices ◽  
Content Type ◽  
Blue Book ◽  
Host Country Nationals ◽  
Internal Context

Purpose Questions have often been asked of the ethicality of multinational enterprises (MNEs) with the conducts of many being classified as exploitative. This is particularly so the internal context, where MNEs are often reluctant to employ host country nationals at important positions and treat their host and parent countries employees differently. This study aims to examine whether the locals are really getting the raw end of the deal. Design/methodology/approach Utilising a unique record book that is available about the employment details of civil servants in Hong Kong known as the blue book, this study intends to examine whether first-moving multinational organisations treated their local employees in an ethical and reasonable manner, for the employees entering the service between 1845-1850. Findings The data suggests that, overall, host country nationals earn much less than not only the British but also those from third countries. Moreover, parent country nationals were placed at important officer and supervisory roles, as oppose to host country nationals at the bottom, forming a typically ethnocentric governance structure (Perlmutter, 1969). Furthermore, even divided by grade, the starting salary difference between host and parent country nationals remain considerable. However, the reason for this is complex, and the authors do not have a quick and precise answer as to whether there has been discrimination. Research limitations/implications The findings perhaps explain the dilemma faced by the early-movers because they tend to feel the strong need of adopting an ethnocentric approach, which can be extremely costly as a result of the large wage differential. A balance needs to be struck between this and utilising host country nationals, which might not necessarily possess all the essential qualities but might be cheaper. Originality/value This is the first study examining the employment practices of fast-moving MNEs.

Combining lifelines to thrive: a stage-based need fulfilment network of international assignees

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Prantika Ray ◽  
Sunil Kumar Maheshwari
Keyword(s):  
Human Resource Management ◽  
Human Resource ◽  
Host Country ◽  
Design Methodology ◽  
International Assignment ◽  
Content Type ◽  
Host Country Nationals ◽  
Developmental Network ◽  
Mentoring Functions ◽  
Practical Implications

PurposeThe paper tries to understand the needs of the international assignees across the different stages of expatriation and how different developers in the professional and non-professional sphere render support and advice through these stages.Design/methodology/approachIn this paper, the authors have interviewed 20 expatriates of various nationalities and tried to understand the various needs of the expatriates across the three initial stages of an assignment.FindingsThe paper finds that four important mentors in an expatriation assignment play multiple need-based mentoring functions at various assignment stages: host country nationals (HCNs), parent country nationals, fellow expatriates and family.Research limitations/implicationsThis paper contributes to the literature on the need-based support rendered to expatriates during an international assignment. The paper, however, does not incorporate the perceptions of other vital stakeholders in the network and their intentions to contribute to the developmental network.Practical implicationsThis paper lays down important practical implications for expatriates and the human resource management (HRM) professionals. This paper urges the practitioners to take a nuanced approach for developing expatriates than a generalized mentoring programme.Originality/valueThis study highlights the changing needs of the international assignees across the stages of an international assignment and demonstrates the important intra-organizational and extra-organizational developers such as family members in the fulfilment of these needs.

Knowledge transfer from business schools to business organizations: the roles absorptive capacity, learning motivation, acquired knowledge and job autonomy

2017 ◽  
Vol 21 (5) ◽  
pp. 1240-1253 ◽  
Author(s):  
Nguyen Dinh Tho
Keyword(s):  
Knowledge Transfer ◽  
Absorptive Capacity ◽  
Business Schools ◽  
Business Students ◽  
Learning Motivation ◽  
Job Autonomy ◽  
Business Organizations ◽  
Content Type ◽  
Service Training

Purpose The purpose of this paper is to investigate the impacts of absorptive capacity, learning motivation and acquired knowledge on knowledge transfer from business schools to business organizations, as it has been realized that in-service training business students can serve as a channel as well as a source in this type of knowledge transfer. The study also examines the mixed moderating role of job autonomy in the relationship between acquired knowledge and knowledge transfer. Design/methodology/approach A sample of 344 in-service training business students in Vietnam was surveyed to collect data. Confirmatory factor analysis was used to validate the measures, and structural equation modeling was used to test the hypotheses. Findings The findings reveal that absorptive capacity positively affects acquired knowledge but it does not have an effect on knowledge transfer. Learning motivation, however, has positive effects on both acquired knowledge and knowledge transfer. The findings also indicate that acquired knowledge is a determinant of knowledge transfer. Finally, job autonomy plays the role of a mixed moderator in the relationship between acquired knowledge and knowledge transfer. Practical implications This study signals the participating parties –business schools, business organizations and in-service training business students –that absorptive capacity, learning motivation, acquired knowledge and job autonomy are critical to the transfer of knowledge from business schools to business organizations. Originality/value This study contributes to the literature on university-to-industry knowledge transfer by providing empirical evidence for key determinants of knowledge transfer from business schools to business organizations through a new channel of knowledge transfer – in-service training business students.

scholarly journals An Exploratory Study of Challenges Faced by Expatriates in Knowledge Transfer while Working in Pakistan

2019 ◽  
Vol 5 (1) ◽  
pp. 1-35
Author(s):  
Maliha Elahi ◽  
Sabeen Hussain Bhatti ◽  
Shazia Nauman
Keyword(s):  
Knowledge Management ◽  
Standard Deviation ◽  
Knowledge Transfer ◽  
Host Country ◽  
Exploratory Study ◽  
Verbal Communication ◽  
Ranking Method ◽  
Work Permit ◽  
Host Country Nationals

This research focuses on identifying the challenges faced by expatriates during knowledge transfer. Further it investigates the tools employed by these expatriates in facilitating knowledge transfer to the host country nationals. Fifteen challenges identified by Singhapong and Muenjohn (2008) that expatriates face and which affect their work (including knowledge transfer) in Thailand, have been taken for relevance to expatriates in Pakistan. Knowledge transfer tools identified by Smith (2004) have been taken for the purpose of this study to assess if these factors also apply to Pakistan. Data was collected from 26 respondents of four nationalities. Ranking method was employed using mean and standard deviation to rank the knowledge transfer tools and challenges faced by expatriates. Results demonstrate that restrictions on work permit were the biggest challenge faced by expatriates while working here in Pakistan. Verbal communication was found as the highly ranked knowledge transfer tool employed by expatriates through which host country nationals learn. This applied exploratory study contributes to the literature on knowledge management for Pakistan that will enable future in depth research in this area.

Host country national support to expatriates: a motivated information processing perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Young-Jae Yoon ◽  
Arup Varma ◽  
Anastasia Katou ◽  
Youngjae Cha ◽  
Soohyun Lee
Keyword(s):  
Social Support ◽  
Information Processing ◽  
Host Country ◽  
Social Motivation ◽  
Content Type ◽  
Expatriate Adjustment ◽  
Host Country Nationals ◽  
Epistemic Motivation ◽  
The Usa ◽  
Motivated Information Processing

PurposeThe support of host country nationals (HCNs) is a key determinant of expatriate adjustment and performance. The purpose of this paper is to explore underlying motivations for their support to expatriates. Previous research has shown that HCNs with pro-social motivation are more likely to help expatriates. Drawing upon motivated information processing in groups (MIP-G) theory, the authors test whether epistemic motivation moderates the observed relationship between pro-social motivation and HCNs’ support toward expatriates.Design/methodology/approachThe authors ran two correlational studies (N = 267) in the USA (Study 1) and South Korea (Study 2). Across two studies, epistemic motivation and social motivation were measured using their multiple proxies validated in previous research. The authors also measured HCNs’ willingness to offer role information and social support to a hypothetical expatriate worker.FindingsResults lend support to our hypotheses that pro-social HCNs are more willing than pro-self HCNs to provide role information and social support to the expatriates, but this occurs only when they have high rather than low epistemic motivation.Originality/valueThe current paper contributes the literature on HCNs helping expatriates by qualifying the prior results that a pro-social motivation (e.g. agreeableness and collectivism) increases the willingness of HCNs to help expatriates. As hypothesized, this study found that that case is only true when HCNs have high, rather than low, epistemic motivation. Also, previous research on MIP-G theory has mainly focused on the performance of small groups (e.g. negotiation, creativity and decision-making). To the best of the authors’ knowledge, this research is the first attempt to test MIP-G theory in the context of HCNs helping expatriates.

Knowledge exchange between expatriates and host country nationals: an expectancy value perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yu-Shan Hsu ◽  
Yu-Ping Chen ◽  
Margaret A. Shaffer ◽  
Flora F.T. Chiang
Keyword(s):  
Knowledge Acquisition ◽  
Host Country ◽  
Knowledge Exchange ◽  
Value Theory ◽  
Asia Pacific ◽  
Expectancy Value ◽  
Content Type ◽  
Host Country Nationals ◽  
Motivation To Transfer ◽  
Knowledge Acquisition And Sharing

PurposeDrawing on expectancy value theory (EVT), this paper examines knowledge exchange between expatriate and host country national (HCN) dyads to understand whether receivers' perceptions about senders' motivation to transfer knowledge and perceived value of the knowledge jointly affect receivers' motivation to learn and, in turn, facilitate their knowledge acquisition and sharing.Design/methodology/approachLatent moderated structural (LMS) equations were used to analyze data from 107 expatriate–HCN dyads working in the Asia Pacific region.FindingsIn general, whether senders are expatriates or HCNs, only when receivers perceive that (1) knowledge to be transferred is valuable and (2) senders are motivated to transfer, receivers are likely to be motivated to receive knowledge transferred from senders and, in turn, acquire and share knowledge with senders.Originality/valueThis study is one of the first in the expatriate and knowledge transfer literature to address the mixed findings between senders' motivation to transfer and receivers' knowledge acquisition and sharing by drawing on EVT.

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