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Knowledge transfer to the subsidiaries operating in overseas

José Martins (Management Division, ISCAL (Instituto Superior de Contabilidade e Administração de Lisboa), Lisboa, Portugal)
Nelson António (Department of Management, ISCTE (Instituto Superior de Ciências do Trabalho e da Empresa), Lisboa, Portugal)

Industrial Management & Data Systems

ISSN: 0263-5577

Article publication date: 27 April 2010

1596

Abstract

Purpose

The purpose of this paper is to provide information for the companies that pretend to transfer knowledge to their subsidiaries situated in an least developed country (LDC), because of the local operative specificity which is influenced by three analytical dimensions: first, the multinational enterprise's (MNE) ability to transfer knowledge; second, the climate of cooperation between the MNE and its subsidiary; and third, the subsidiary's absorptive capacity.

Design/methodology/approach

The present case study deals with three companies with subsidiaries in Mozambique which develop activities in the industrial sector, where the procedures of the analysis of contents are applied in order to answer the research questions.

Findings

The results show that the transferred knowledge must be directed at the operational needs felt locally. It must be avoided that the receiver believes the transferred knowledge is imposed by the transmitter, in order for it to be used as an asset in the production of new products, but without reproducing the MNE headquarters' business model because of the specific local context.

Research limitations/implications

The case study method does not allow the results to be generalized, but it permits the investigation of a combination of problems of the phenomenon thus contributing to its better understanding.

Originality/value

The results obtained contribute to a better understanding and greater efficiency of the process of knowledge transfer to the subsidiaries situated in an LDC, taking into consideration the particular characteristics of the local market and the local absorptive capacity.

Keywords

Citation

Martins, J. and António, N. (2010), "Knowledge transfer to the subsidiaries operating in overseas", Industrial Management & Data Systems, Vol. 110 No. 4, pp. 516-531. https://doi.org/10.1108/02635571011039007

Publisher

:

Emerald Group Publishing Limited

Copyright © 2010, Emerald Group Publishing Limited

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