Factors Affecting Reverse Knowledge Transfer from Subsidiaries to Multinational Companies: Focusing on the Transference of Local Market Information

Although research on reverse knowledge transfer (RKT) from subsidiaries to headquarters is increasingly prominent, the debate concerning the primary determinants influencing RKT has not reached an academic consensus. Therefore, we have attempted to draw an overall picture for RKT by using both knowledge transfer capacity and relational capital as overarching theoretical lenses. In a sample of South Korea, we find that knowledge development capability, subsidiary willingness, and autonomy are critical factors affecting the reverse transfer of local market information within MNC networks. Furthermore, both the knowledge integration mechanism and trust are facilitators for improving relational capital between subsidiaries and MNCs. This factor facilitates RKT from the former to the latter.