The Effect of Local Market Knowledge Acquisition through Social Capital of Foreign Subsidiary on Reverse Knowledge Transfer

2013 ◽  
Vol 17 (4) ◽  
pp. 153
Author(s):  
Gap Yeon Jeong
2017 ◽  
Vol 18 (2) ◽  
pp. 437-462 ◽  
Author(s):  
Bushra Meaad Ramadan ◽  
Samer Eid Dahiyat ◽  
Nick Bontis ◽  
Mahmoud Ali Al-dalahmeh

Purpose The purpose of this paper is to empirically investigate the mediating effect of social capital (SC) on knowledge management (KM) and intellectual capital (IC). Design/methodology/approach A conceptual model of the connections between IC, KM, and SC was developed and the posited hypotheses were tested using a survey data set of 281 questionnaires collected from knowledge workers working in 72 information and communications technology companies operating in Jordan. Findings The findings show that knowledge documentation and knowledge transfer emerged as having the strongest effects on IC, followed by knowledge acquisition and knowledge creation, while knowledge application was found to have an insignificant effect. Also, knowledge transfer and knowledge acquisition emerged as the only two significant processes for the development of SC. Moreover, SC was found to partially and significantly mediate the effects of all processes on IC. Practical implications To promote the development of IC, particularly, in a knowledge-intensive business service (KIBS) sector, documentation, transfer, acquisition, and creation of knowledge are especially effective processes. Furthermore, SC can be significantly enhanced through ensuring effective internal knowledge transfer and acquisition practices. Nurturing IC in a knowledge-intensive context can also be significantly enhanced through looking at the firm as a cooperative knowledge-sharing entity, i.e. investing in SC. Originality/value This is the first empirical study that has examined the links among KM processes, SC, and IC in a KIBS sector within an “oil-poor,” “human resource-rich” Arab developing country context.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Barbara Jankowska ◽  
Małgorzata Bartosik-Purgat ◽  
Iwona Olejnik

PurposeThe aim of the paper is to identify the determinants of the marketing and managerial knowledge transfer from a foreign subsidiary located in a post-transition country to its headquarters established in a developed country.Design/methodology/approachThe authors combined the critical literature studies and empirical research, where the method of Computer-assisted Telephone Interview (CATI) was applied. The empirical data was gathered from 231 manufacturing foreign subsidiaries established in Poland (as one of the post-transition economy). To test the hypotheses logistic regression was applied.FindingsThe knowledge accumulated in the foreign subsidiary, the amount and level of novelty of innovation in the foreign subsidiary and its strategic autonomy is crucial for the occurrence of the reverse knowledge transfer. However, the more powerful the foreign subsidiary is, the less eager it is to transfer marketing and managerial knowledge to the headquarters.Research limitations/implicationsThe study is concentrated just on the manufacturing sector in the Polish economy. The results are based on the opinions and perception of managers, but they represent the corporate perspective (not their individual ones).Practical implicationsThe study provokes asking the question about the proper level of strategic autonomy of a foreign subsidiary. The implication related to the autonomy is much about the proper strategy for human resources management. The obtained results indicate that the intensity of innovation in a foreign subsidiary “translates” to the outflow of knowledge from a foreign subsidiary to its headquarters. Thus, encourages headquarters to let their subsidiaries innovate still monitoring their power.Social implicationsFSs are entities more or less embedded in the host markets, thus their strength and sustainable existence is important for their stakeholders, in particular – internal entities such as employees and external entities such as suppliers, and other cooperating organisations and institutions in the host market. The contribution of FSs to the innovation performance and knowledge pool of external partners is determined much by their absorptive capacity. Thus, the results obtained indirectly point to the importance of external agents ability to absorb and exploit the knowledge.Originality/valueThe originality of the paper concerns three issues. Firstly, the previous studies are mainly focused on either developed or emerging markets and as a result, the peculiarity of post-transition economies, like Poland has been neglected. Secondly, the determinants of reverse knowledge transfer are presented from the corporate perspective. Thirdly, authors focus on marketing and management knowledge distributed from a foreign subsidiary to its headquarter.


2014 ◽  
Vol 18 (5) ◽  
pp. 905-918 ◽  
Author(s):  
Daniel Jiménez-Jiménez ◽  
Micaela Martínez-Costa ◽  
Raquel Sanz-Valle

Purpose – This paper aims to assess the importance of different knowledge management practices to promote organizational innovation in multinational companies. The links among internationalization, reverse knowledge transfer and social capital and organizational innovation are analyzed. Design/methodology/approach – Structural equation modeling was used to check the research hypotheses with a sample of 104 multinational companies. Findings – The results show that internalization has no direct effect on organizational innovation but a indirect effect trhrough the transfer of knowledge from external subsidiaries to the headquarter. Furthermore, this knowledge and other that comes from internal and external social capital is essential for the development of innovations. Research limitations/implications – Self-reporting by the CEOs may be the most significant limitation, as a single key informant provided the data; multiple informants would enhance the validity of the research findings. A second limitation is the cross-sectional design of the research that does not allow observation of the short- and long-term impact of the relationships among the variables. Practical implications – Organizational innovation is not an easy task. However, those multinational companies which foster knowledge management practices that generate new knowledge from external subsidiaries, internal or external social relationships, will facilitate the generation of innovations. In consequence, these companies should foster the generation of knowledge from different sources. Originality/value – The focus of the study in this paper is on multinational companies and the possibility to acquire knowledge from different sources (inside organization, external local environment and international context). Specially, focus on the transfer of knowledge from subsidiaries to headquarters (reverse knowledge transfer), as it is insufficiently investigated by current literature.


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