The impact of knowledge properties on international manufacturing transfer performance

Abstract

This paper examines how knowledge properties of a manufacturing activity transfer in international manufacturing network impact performance during the transfer itself and after steady state has been reached. Hierarchical regression was used to test the relationship on survey data from 178 companies. Knowledge properties as a group was significantly affected by both performance measures when controlling for the effects of sender unit experience, sender unit size and receiver unit experience. The activities transferred thus impact the success of the transfer. The control variables of sender unit experience and receiver unit experience have their relatively strongest performance effects after steady state has been reached. Independency was the single knowledge property dimensions with the strongest relative performance effect. This is one of the first survey studies to cover both the performance of the transfer itself and after reaching steady state of manufacturing transfers. Several strands of further research were therefore identified.

Manufacturing internationalization: from distance to proximity? A longitudinal analysis of offshoring choices

“…As for the control variables, some industries may relocate their activities more often than others (Gereffi, 1999;Abele et al, 2008) or may have specific requirements (Fredriksson and Jonsson, 2019). We therefore included dummy variables (1-digit NACE code) related to the different industries.…”

“…Among the most debated issues, we can cite the risks associated with the learning curves (e.g. ramp-up performance) (Pedersen and Slepniov, 2016) and their underestimation (Steenhuis and De Bruijn, 2002), the JMTM 32,9 role of different types of distance (including cultural one) in the management and productivity outcomes of overseas facilities (Mykhaylenko et al, 2017;Steenhuis and De Bruijn, 2007), the impact of knowledge characteristics on its transferability (Grant and Gregory, 1997) and on the performance of the transfer process (Fredriksson and Jonsson, 2019).…”