Expatriate managers' relationships and reverse knowledge transfer within emerging market MNCs: The mediating role of subsidiary willingness

Abstract

This study investigates the effects that expatriate managers' relationships within multinationals have on reverse knowledge transfer. Specifically, drawing on agency theory, we characterize how expatriate managers' relationships with subsidiary local managers, and with headquarters' managers, influence subsidiary willingness and reverse knowledge transfer. Based on a survey of 128 subsidiaries in 73 Chinese multinationals, we show how a good-quality relationship between expatriate managers and subsidiary local managers has positive effects on subsidiary willingness, which acts as a mediator between this relationship quality and the extent of reverse knowledge transfer. The paper contributes to the international business and knowledge transfer literature by generating new insights into whether and how expatriate managers' relationships within multinationals can help reduce agency problems and support reverse knowledge transfer processes. Understanding the potential role of expatriates in relation to reverse knowledge transfer is particularly important within the context of emerging market multinationals employing knowledge-seeking strategies overseas.