Managing Knowledge Transfer in Chinese MNEs: The Reciprocity Between ACAP and DCAP

Abstract

This study examines reciprocity between absorptive capacity (ACAP) and disseminative capacity (DCAP). Drawing on the social exchange theory (SET), reciprocity is conceptualised as bi-lateral enactment of connectivity between ACAP and DCAP. Reciprocity builds on what connects ACAP and DCAP in terms of relevance, compatibility and transparency in the abilities, willingness and opportunities for the parent and subsidiary firms to collaborate in two-way knowledge transfer. In addition, key stakeholders from parent and subsidiary firms enact reciprocity by necessitating, bridging, and consolidating ACAP and DCAP. Our conceptual framework of reciprocity therefore signifies a process of bi-lateral enactment of ACAP and DCAP, in which material exchanges, organisational commitments, and stakeholder consents are created at both ends of reverse knowledge transfer.