Reverse knowledge transfer in digital era and its effect on ambidextrous innovation: A simulation based on system dynamics

Abstract

Knowledge transfer plays a prominent role in fostering innovation among multinational corporations (MNCs), however, the exploration of reverse knowledge transfer in today's digital era remains insufficient. Therefore, we explore the impact of reverse knowledge transfer on ambidextrous innovation and the process mechanism against the backdrop of digital technology. A system dynamics model of reverse knowledge transfer is constructed from three aspects: knowledge acquisition, knowledge absorption and knowledge application. Our simulation results indicate that the dual embeddedness of multinational R&D centers promotes knowledge acquisition and absorption, enhances the knowledge base of parent companies, and facilitates ambidextrous innovation. In particular, the application of digital technology further promotes the process through knowledge absorption, with the long-term impact more pronounced. This study not only enriches the literature on reverse knowledge transfer but also expands the application of digital technology in the field of MNCs' innovation.