Headquarters-subsidiary and subsidiary-headquarter knowledge transfer mechanisms in Brazilian multinationals

Abstract

This article analyzes differences concerning the use of knowledge transfer mechanisms between parent companies and subsidiaries of Brazilian multinational corporations. It aims to verify whether the mechanisms used to transfer knowledge from parent company to subsidiaries are the same as those used when knowledge is transferred from subsidiaries to parent company. Next, it tests whether these mechanisms directly impact the transfer of knowledge from parent company to subsidiaries and vice versa. Data analyzed come from two surveys: one applied to parent companies and the other to foreign subsidiaries of Brazilian multinationals. It is concluded that the transfer of knowledge in emerging Brazilian multinational firms does not rely on the same mechanisms that traditional multinational firms use. It is also concluded that there is a need to differentiate between Brazilian multinational firms and those from other countries of the BRIC (Brazil, Russia, India and China), and thus, Brazilian multinational firms need to use more of their subsidiaries' knowledge, adopting a more advanced management of their portfolio of subsidiaries.