Implications for multinational enterprises from emerging market subsidiaries reverse knowledge transfer

Purpose: The study aims to understand the role of drivers, underlying challenges and, consequently, the implications of the reverse knowledge transfer (RKT) process for multinational enterprises (MNEs). Method: A dyadic qualitative research design was used with a cross-country design covering perspectives from both the parent companies (PCs) and subsidiaries from the United States, Denmark, Pakistan, India, and Bangladesh. In-depth interviews were conducted with managers in multiple sectors such as information technology, telecommunications, project management, and engineering. Findings: The study reveals the constraints and drivers of the RKT process, and furthermore elaborates on the implications for MNEs. RKT can lead to the development of new processes, subsidiary independence, and intra-organizational knowledge transfer. Besides, it can entail challenges such as position insecurity for subsidiaries and a blurring of the MNE market vision. The findings demonstrate several implications for the MNEs. Implications: The study highlights the direct implications of RKT for the multinational enterprises. The findings serve as a practical guide for global managers seeking to improve their competitive edge. Originality: The study presents a framework of the RKT process from emerging market (EM) subsidiaries to PCs, that demonstrates the role of drivers, underlying challenges, and implications of the RKT process for the MNEs. Paper type: Research pape