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Headquarters’ Managerial Intentionality and Reverse Transfer of Practices

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Abstract

This paper addresses the reverse transfer (RT) of practices in multinational corporations (MNCs), a phenomenon which occurs when practices originating in their cross-border affiliates are transferred back to the parent MNCs. Based on an empirical investigation of the experience of 503 Hong Kong MNCs with subsidiaries in Mainland China, this study has successfully and more systematically tested and discussed the managerial intentionality (MI) related factors on RT than has been done before in the literature. The results suggest high headquarters intentional arrangements involving choosing wholly-ownership, International Human Resource Management control, active trust building, and frequent personal contact can improve explanatory power of achieving the objectives of reverse transfer of practices significantly.

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Notes

  1. MNCs are conventionally defined as those involved in business and with operations in two or more countries (Daniels et al. 2008).

  2. There are several types of subsidiary. This study focuses on wholly-owned subsidiaries and those with shared ownership (joint-ventures).

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    Leanne Chung

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Chung, L. Headquarters’ Managerial Intentionality and Reverse Transfer of Practices. Manag Int Rev 54, 225–252 (2014). https://doi.org/10.1007/s11575-013-0192-1

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