The organization of knowledge transfer in the context of Chinese cross-border acquisitions in developed economies

Abstract

This article investigates how Chinese multinational enterprises (MNEs) organize knowledge transfer through cross-border acquisitions in developed economies, by employing an organizational learning perspective, and investigating Chinese acquisitions in the German industrial sector. Engaging in several activities (e.g., establishment of R&D centers, joint ventures, and staff deployment, etc.), Chinese enterprises ultimately aim for stimulating the interaction between the acquired target and the parent company. Challenging the conventional wisdom, knowledge transfer also happens reciprocally. The absorptive and disseminative capacities of both partners, along with the knowledge characteristics, and the intercultural issues, moderate the effectiveness of knowledge transfer.