Subsidiary absorptive capacity and knowledge transfer within multinational corporations

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The paper reviews extant literature on subsidiary absorptive capacity and knowledge transfer within multinational corporations (MNCs), and proposes an agenda for future research on the relationship between these two constructs. It suggests that motivation should be viewed as a moderating factor between subsidiary absorptive capacity and MNC knowledge transfer, and that future research should make a clear distinction between the choices of MNC headquarters and those of subsidiaries regarding knowledge transfer. The paper proposes that a more comprehensive, multi-level framework and dynamic model of the determinants of subsidiary absorptive capacity and MNC knowledge transfer be developed in future studies.