The differentiated role of organizational ambidexterity and organizational innovation in the subsidiary reverse knowledge transfer process

Abstract

Purpose This paper underscores how organizational ambidexterity and organizational innovation play differentiated roles in the subsidiary reverse knowledge transfers (RKT). The authors argue that both organizational ambidexterity and organizational innovation play a positive but differentiated role in the RKT process in that the former positively influences subsidiary knowledge creation, whereas the latter positively influences subsidiary knowledge transfers. Design/methodology/approach Data were collected from 289 foreign subsidiaries operating in Brazil. Hypotheses were developed and tested by applying partial least squares structural equation modeling. Findings The results supported the hypotheses and showed that organizational ambidexterity promotes knowledge creation, and that organizational innovation facilitates knowledge transfers. Research limitations/implications The paper offers implications with regard to drivers of subsidiary investments and actions of subsidiary managers vis-à-vis the subsidiary objectives of knowledge creation and/or transfers. Originality/value Showing the different roles of organizational ambidexterity and organizational innovation, this paper reveals some underlying mechanisms of the RKT process and contributes by explaining the competitive heterogeneity of subsidiaries, with impacts on subsidiary management’s evolutionary and resource dependence perspective.

Implications for multinational enterprises from emerging market subsidiaries’ reverse knowledge transfer

“…The current study further highlights how an MNE’s ability to manage the learning environment can affect RKT, and how programs aimed at fostering knowledge sharing from EM subsidiaries can strengthen the PC’s absorptive capacity (Nair et al. , 2016; Borini et al. , 2022).…”

“…Absorptive capacity is defined as the CEMJ 31,3 ability to identify new knowledge and acquire and assimilate it with the company knowledge base and, ultimately, utilize it to a commercial end (Nair et al, 2016). According to Borini, Santos, Raziq, Pereira, and Brunhara (2022) and Wijaya and Suasih (2020), a firm's skill in acquiring intangible resources depends on its ability to manage and add newly obtained knowledge to its current base of intangible assets. The critical part of this driver is that it has little or no effect when the knowledge distance between the source and recipient unit is short (Liao, Liu, & Wang, 2012).…”

“…Previous studies also found that subsidiaries should have autonomy in decision-making to develop and transfer knowledge that can leverage an MNE's competitive advantage (Kogut & de Mello, 2017;Castro & Moreira, 2023). Hence, the organizational structure must be decentralized so that any subsidiary feels free to share its skills (Borini et al, 2022). Subsidiaries need to be able to interpret and codify knowledge in appropriate ways so that the knowledge recipient can absorb it (Jankowska et al, 2020).…”

Unlocking the relationship between ambidextrous leadership style and HRM practices in knowledge-intensive SMES

“…Patel et al ’s (2013) study to investigate the relationship between high-performance work practices (HPWS) and OA found support for the mediating role of ambidexterity between a bundle of HPWS and firm growth. An earlier study suggests OA promotes knowledge creation (Borini et al , 2022). Also, OA contributes to organizational performance (Ramachandran et al , 2019; Del Giudice et al , 2021).…”

O desenvolvimento de capacidades organizacionais em subsidiárias estrangeiras e a transferência reversa de conhecimento: uma perspectiva envolvendo microfundamentos

“…Em seguida, com base na sustentação da hipótese H4, constatou-se que as capacidades organizacionais passam por um processo de evolução (Andersson, Dellestrand, & Pedersen, 2014;Scott-Kennel & Giroud, 2015), na qual uma capacidade local desenvolvida por uma determinada subsidiária pode vir a se tornar uma capacidade global em virtude da sua implementação em outras unidades subsidiárias ou na própria matriz multinacional (Rugman & Verbeke, 2001). Isso ocorre por meio da transferência reversa de conhecimento, que permite que a matriz e/ou outras subsidiárias também utilizem alguma capacidade organizacional de determinada subsidiária como um recurso para obter vantagem competitiva (Najafi-Tavani, Giroud & Sinkovics, 2012;Borini et al, 2021) ou para a resolução de problemas gerenciais em locais onde outras unidades da corporação multinacional atuam (Bouquet & Birkinshaw, 2008a).…”