Human resource management, absorptive capacity and reverse knowledge transfer

Abstract

PurposeThe objective of this study is to analyze 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/approachThe data were collected through a questionnaire completed by the human resource manager of multinational company (MNC) headquarters. The analysis has been carried out on a sample of 115 Spanish MNCs by using structural equation models (SEM).FindingsThe 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/valueThis 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.