Human resource management, absorptive capacity, and reverse knowledge transfer

Abstract

Purpose: The objective of this study is to analyse the process of reverse knowledge transfer (RKT) occurring in multinational companies (MNCs), examining whether headquarters’ absorptive capacity and the human resource management (HRM) practices developed by the parent unit influence success. Design/methodology/approach: The data were collected through a questionnaire completed by the human resource manager of MNC headquarters. The analysis has been carried out on a sample of 115 Spanish MNCs by using structural equation models (SEM). Findings: The results indicate that a parent firm's absorptive capacity positively influences RKT and that, in turn, this absorptive capacity is greater if headquarters implement certain practices of employee staffing, training, participation, and performance appraisal. Originality: This study extends existing research on RKT by examining the absorptive capacity of headquarters. Its main contribution is to provide evidence that MNCs can improve their RKT through HRM practices developed by the parent unit. This is original because most studies on RKT focus on HRM practices used by subsidiaries.