DOI: 10.5716/978-981-08-9493-1_IE16
Authors: Peng-Yu Li and Fang-Yi Lo
Abstract:
Parent companies often transfer knowledge to subsidiaries to enhance the competitive position, which in turn affects investment performance. The purpose of this study is to investigate the determinants and outcomes of internal knowledge transfer. This study examines the three determinants jointly that affect parent company knowledge transfer to subsidiaries: parent company characteristics, subsidiary characteristics, and the relationships between the parent company and their subsidiaries.The study sample is taken from manufacturing firms and subsidiaries listed in the United States––specifically patent data from 283 subsidiaries ––to examine the degree of knowledge transfer as well as subsidiary performance. The results demonstrate that increased parent company international experience, transfer capacities, and knowledge capacities, as well as increased subsidiary international experience and the more importance of subsidiaries to the parent company tend to increase the degree of knowledge transfer. In turn, the increased knowledge transfer benefits subsidiary performance.
Keywords: Knowledge Transfer, Subsidiary, Performance
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