Transferring subsidiary knowledge to global headquarters: subsidiary senior executives' perceptions of the role of HR configurations in the development of knowledge stocks

Abstract

We examine the role played by subsidiaries' human resource (HR) practices in the development of subsidiaries' knowledge stocks (defi ned as human and social capital) and the association of such knowledge stocks with knowledge transfer from subsidiaries to headquarters in multinational corporations (MNCs). Drawing on a survey of 151 Australian subsidiary senior executives of U.S., German, and Japanese MNCs, our fi ndings suggest that the role of subsidiaries' HR practices lies in nurturing ties between a subsidiary and its external stakeholders and in accumulating knowledge of strategic importance not only for the subsidiary but also for its headquarters.

Why and How Does Shared Language Affect Subsidiary Knowledge Inflows? A Social Identity Perspective

“…Specifically, a shared language is thought to make the diffusion and implementation of centralized decisions easier (Marschan-Piekkari et al, 1999a). Similarly, evidence suggests that the design of HR practices directly influences cross-unit inflows of tacit knowledge (Yamao, De Cieri, & Hutchings, 2009). Scholars have also highlighted the role of employee consensus toward HR decisions for a number of positive outcomes, including knowledge transfer (Bowen & Ostroff, 2004).…”

Knowledge flows in the emerging market MNC: The role of subsidiary HRM practices in Korean MNCs

“…Among these, 68 were not listed on the main Korean Stock Exchange (KSE) and were not included in our study, reducing the target frame to 159 subsidiaries. Following prior studies of knowledge inflows and outflows involving MNC subsidiaries (Gupta & Govindarajan, 2000;Yamao et al, 2009), our questionnaire was aimed at an experienced senior manager in the subsidiary. We required the respondent to have insight into employee ability, employee coupling with other units and HRM practices applied within the subsidiary.…”

“…MNCs have largely focussed on either knowledge inflows or knowledge outflows, but not both (e.g., Simonin & Özsomer, 2009;Yamao, de Cieri, & Hutchings, 2009). Secondly, the literature also shows a lack of clarity in terms of the principal effect of practices vis-à-vis formalized practices that develop employees vs. empowering practices.…”

Assessing the importance of managerial accuracy of perceptions

“…Recent trends in research have stressed the essential role of knowledge processes on firm performance. However, and although previous studies have suggested that HRM practices and knowledge-related outcomes are associated (Minbaeva 2005;Yamao et al 2009), researchers ''have recognized that the traditional prescriptions of high-performance HRM practices are not relevant for knowledge processes'' (Minbaeva et al 2009, p. 478). …”

“…Recent HRM literature has drawn attention essentially to the role of HRM practices in developing incentives for top managers (Berrone and Gomez-Mejia 2009) in creating knowledge stocks and promoting knowledge transfer (Yamao et al 2009;Kae et al 2009) or specifically in improving employee skills or knowledge (Lepak and Snell 1999;Lopez-Cabrales et al 2009). Nevertheless, few studies examine the connection between managers' knowledge, measured by the accuracy of their perceptions, and its influences on firm strategy and performance.…”