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 (defined 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 findings 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.