TY - JOUR
T1 - How does successive inpatriation contribute to subsidiary capability building and subsidiary evolution? An organizational knowledge creation perspective
AU - Kim, Heejin
AU - Reiche, B. Sebastian
AU - Harzing, Anne-Wil
N1 - Funding Information:
1We investigated 47 Japanese MNCs and conducted 95 interviews in the Japanese HQs and ten Asian countries of the MNCs (China, Cambodia, India, Indonesia, Korea, Malaysia, Singapore, Taiwan, Thailand, Vietnam) between 2012 and 2016, under the research projects of (a) ‘Dynamic analysis on market strategy and organizational capability building of Japanese companies in emerging markets’ (2012–2013, JSPS KAKENHI Grant Number 12926992), and (b) ‘Foreign subsidiaries’ capability building in product development function’ (2012–2016, JSPS KAKENHI Grant Number 12808804, 14445974).
Funding Information:
We are deeply grateful for the guidance and constructive comments of Area Editor Mary Teagarden and the three anonymous reviewers. We also thank Helene Tenzer for her valuable feedback on earlier versions of our manuscript. This work was supported by JSPS KAKENHI Grant Numbers JP12926992, JP12808804, JP14445974, and JP20243632.
Publisher Copyright:
© 2022, The Author(s).
PY - 2022/9
Y1 - 2022/9
N2 - Intra-company knowledge transfer is a key source of competitive advantage for multinational companies (MNCs) and this knowledge is usually embedded in individuals. Drawing on organizational knowledge creation theory, we explore how inpatriation contributes to knowledge transfer and, in turn, subsidiary performance. Inpatriation involves the international assignment of employees from an MNC's foreign subsidiary to its headquarters. Despite increasing attention to the role of inpatriation, we lack a clear understanding of whether and how inpatriates provide value to their subsidiaries after returning from headquarters. Through a qualitative case study of Japanese MNCs, we demonstrate the process through which inpatriates' knowledge transfer contributes to subsidiary capability building and subsidiary evolution over time, and explain why successive inpatriation is thus critical to enhance subsidiary performance. Our theoretical model highlights the value of inpatriates as knowledge agents, reveals the process through which inpatriates transfer knowledge between HQ and subsidiaries, and provides a more nuanced understanding of the micro-foundations of intra-MNC knowledge transfer processes. Based on these findings, we argue that inpatriation is not merely a staffing method that is complementary to expatriation, but a key practice in its own right to support subsidiaries' growth and performance.
AB - Intra-company knowledge transfer is a key source of competitive advantage for multinational companies (MNCs) and this knowledge is usually embedded in individuals. Drawing on organizational knowledge creation theory, we explore how inpatriation contributes to knowledge transfer and, in turn, subsidiary performance. Inpatriation involves the international assignment of employees from an MNC's foreign subsidiary to its headquarters. Despite increasing attention to the role of inpatriation, we lack a clear understanding of whether and how inpatriates provide value to their subsidiaries after returning from headquarters. Through a qualitative case study of Japanese MNCs, we demonstrate the process through which inpatriates' knowledge transfer contributes to subsidiary capability building and subsidiary evolution over time, and explain why successive inpatriation is thus critical to enhance subsidiary performance. Our theoretical model highlights the value of inpatriates as knowledge agents, reveals the process through which inpatriates transfer knowledge between HQ and subsidiaries, and provides a more nuanced understanding of the micro-foundations of intra-MNC knowledge transfer processes. Based on these findings, we argue that inpatriation is not merely a staffing method that is complementary to expatriation, but a key practice in its own right to support subsidiaries' growth and performance.
KW - organizational knowledge creation theory
KW - inpatriation
KW - knowledge transfer process
KW - subsidiary performance
KW - Japanese MNCs
KW - RESEARCH-AND-DEVELOPMENT
KW - FOREIGN DIRECT-INVESTMENT
KW - HUMAN-RESOURCE MANAGEMENT
KW - GLOBAL TALENT MANAGEMENT
KW - MULTINATIONAL-CORPORATIONS
KW - ABSORPTIVE-CAPACITY
KW - EXPATRIATE UTILIZATION
KW - FIRM KNOWLEDGE
KW - PERFORMANCE
KW - JAPANESE
U2 - 10.1057/s41267-021-00494-3
DO - 10.1057/s41267-021-00494-3
M3 - Article
SN - 0047-2506
VL - 53
SP - 1394
EP - 1419
JO - Journal of International Business Studies (JIBS)
JF - Journal of International Business Studies (JIBS)
IS - 7
ER -