Reverse knowledge transfer from the periphery to the core: Focusing on local market information

Abstract

The aim of this study is twofold. First, the study attempts to identify the factors that affect reverse knowledge transfer (RKT) from the periphery to the core. Second, it explores this phenomenon by classifying subsidiaries into wholly owned subsidiaries and international joint ventures (IJVs), and trying to uncover the differences between these. By employing two theoretical concepts and using the subsidiaries of 195 Chinese firms in Africa, the study confirms that knowledge transfer capacity and relational capital are key determinants for RKT. In particular, the results showed that the knowledge development capability possessed by subsidiaries is a significant influential factor in promoting learning in multinational enterprises (MNEs). In addition, relational capital between IJVs and MNE headquarters functions as a vehicle for facilitating RKT. This paper offers meaningful theoretical and managerial implications based on these results.