National cultural dimensions, emerging market characteristics, and the subsidiary's willingness to transfer marketing knowledge to MNE HQs

Abstract

ABSTRACTSubsidiaries in emerging markets (EMs) are a valuable source of knowledge for multinational enterprises (MNEs). Accessing the vast potential of these markets is increasingly becoming a priority for businesses from developed countries, but success in the markets requires understanding marketing in the emerging market context, which may differ considerably from the accepted truths of the traditional Western approaches. This article seeks to improve understanding of the emerging market contextual factors, which influence the willingness to transfer marketing knowledge from emerging market subsidiaries to headquarters of multinational companies. Using the GLOBE cultural framework, this article proposes that the relationships between power distance, uncertainty avoidance, in-group collectivism, performance orientation, and future orientation with knowledge transfer willingness are moderated by the EM characteristics of shortage of resources, strong sociopolitical governance, inadequate infrastructures, country-of-origin effect, and turbulence of the environment. A conceptual framework and propositions for future study are presented accordingly.