An Empirical Study on the Determinants of Foreign Subsidiaries' Marketing Knowledge Sharing Activity and its Effect on Marketing Knowledge Sharing Satisfaction

Abstract

This paper attempts to examine how the relationship factors of peer foreign subsidiaries in MNEs affect marketing knowledge sharing activity between them and whether the activity guarantees the quality of the shared knowledge and leads to marketing knowledge sharing satisfaction. The research model were tested with the data collected from 113 foreign subsidiaries of Korean MNEs publicly listed in the Korean Stock Exchange, using PLS method. The empirical results show that mutual dependence and trust between them were found to positively influence the extent to which they are actively involved in marketing knowledge sharing and more satisfaction is expected in foreign subsidiaries which share marketing knowledge actively. However, active sharing of marketing knowledge does not always satisfy the parties. They are satisfied only when the shared knowledge is of good quality. The result shows more active sharing of marketing knowledge improves the quality of the shared knowledge owing to a kind of experience and a learning effect and consequently, the subsidiaries are more satisfied.