Empirical Study on the Reverse Knowledge Transfer Process of Subsidiary's Marketing Knowledge

Journal of International Trade & Commerce, Vol.12, No.6, pp.65-88

24 Pages Posted: 29 Mar 2017

See all articles by Gap-Yeon Jeong

Gap-Yeon Jeong

Kyungpook National University

Min-Kyo Seo

Daegu University

Date Written: December 21, 2016

Abstract

Early research on RKT (Reverse Knowledge Transfer: knowledge transfer from subsidiary to headquarter) in MNCs focused predominantly on key factors affecting RKT. Although knowledge transfer is a process in which an organization re-creates and maintains a complex, causally ambiguous set of routines in new settings, the prior studies on RKT have not put these factors into consideration. For this reason, this study saw RKT as a continuous process. In other words, it is a process where a subsidiary creates new knowledge in a local market and shares, transfers, and applies it with HQ. In such a process, this study aims to verify what kind of factors exist when a subsidiary creates marketing knowledge in the local market and to verify what kind of factors exist in a course of sharing, transferring, and using the knowledge in conjunction with HQ, based on the established references. We advance a series of hypothesis to achieve the research objective by using a sample of subsidiaries located in South Korea. By doing this, we reveal that marketing knowledge application by HQ depend significantly on the marketing knowledge creation of subsidiaries and knowledge integration mechanisms. In addition, knowledge relevance between HQ and the subsidiary, and absorptive capacity of HQ used to moderate the positive relationship between knowledge integration mechanisms and marketing knowledge applications of HQ are examined.

Keywords: Knowledge Management Process, Marketing Knowledge, Reverse Knowledge Transfer

JEL Classification: B83, F23, M16, M31

Suggested Citation

Jeong, Gap-Yeon and Seo, Min-Kyo, Empirical Study on the Reverse Knowledge Transfer Process of Subsidiary's Marketing Knowledge (December 21, 2016). Journal of International Trade & Commerce, Vol.12, No.6, pp.65-88. Available at SSRN: https://ssrn.com/abstract=2942581

Gap-Yeon Jeong (Contact Author)

Kyungpook National University ( email )

Korea, Republic of (South Korea)

Min-Kyo Seo

Daegu University ( email )

Jinrang, Gyeongsan, Gyeongsangbuk
Korea, Republic of (South Korea)

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