Reverse knowledge transfer from Central to Western Europe: Selected Case Studies

Sonia Ferencikova

doi:10.15549/jeecar.v7i1.340

Abstract

Reverse knowledge transfer refers to the knowledge flow from the subsidiaries to the parent companies. The paper analyzes if the subsidiaries located in former transitional country (Slovakia) can create and transfer original knowledge to the parent companies in so-called developed Western Europe and focuses on the drivers, communication channels and contributions of such a knowledge flow for both, the headquarters and the subsidiaries. Qualitative research of four subsidiaries of multinational corporations was conducted to identify reverse knowledge transfers and to study them in-depth using case study method.

Highlights

Reverse knowledge transfer from Central and Eastern Europe to Western Europe: does it really exist?The international business research used to focus on traditional knowledge transfer from parent companies to their subsidiaries and from developed countries to developing countries
We study the companies operating in Slovakia to find reverse knowledge transfer cases
What determines this reverse knowledge transfer? We focus on the factors, drivers and motivations that support reverse knowledge transfer and on external corporate mechanisms supporting it

Summary

Introduction

Reverse knowledge transfer from Central and Eastern Europe to Western Europe: does it really exist?. The international business research used to focus on traditional knowledge transfer from parent companies to their subsidiaries and from developed countries to developing countries. The situation has changed, and growing internalization and decentralization has initiated the studies about less frequent knowledge flows, including transfer from subsidiaries to the parent company and from less developed countries to the developed ones. Some research finds reverse knowledge transfer identical to the traditional one. Other opinions state that reverse transfer requires richer activities, more frequent personal interactions, parent facilitation, and a lot of guidance and effort (Borini et al 2012). “The political complexities of reverse transfer can be more difficult to overcome than those of forward transfer” “The political complexities of reverse transfer can be more difficult to overcome than those of forward transfer” (Chung 2014, p. 229)

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Conclusion