Organizational learning from international business affiliations: Effects of the effective and efficient transfer of knowledge on firm performance

The purpose of this research project was to explore different contextual and organizational factors affecting the effectiveness and efficiency of knowledge transfer from international business affiliations (e.g., customers, suppliers, and subsidiaries) to the focal firm and how learning effectiveness and learning efficiency affect the focal firm's tangible and intangible performance.; Using questionnaire responses from a sample of 94 firms, the research findings have several implications for the field of strategic management. First, it was found that a successful knowledge transfer process consists of two different types of successes---effectiveness in the knowledge transfer, comprised of comprehensiveness and usefulness in the knowledge transferred, and efficiency in the knowledge transfer process, comprised of speed and frugality of knowledge transfer. Second, results show that the effectiveness in the knowledge transferred is positively affected by (a) the focal organization's intention to learn, (b) the knowledge possessed by the source that had the propensity to provide sustainable competitive advantage, and (c) a good relationship between the focal organization and the source. Results also show that the efficiency in the knowledge transfer is positively affected by (a) the focal organization's intention to learn and (b) a good relationship between the focal organization and the source. In addition, the source's attractiveness was found to be positively related the focal organization's intention to learn and to the propensity of knowledge to provide sustainable competitive advantage possessed by the source.; Finally, results suggest that effective knowledge transfers are positively related to self-reported increases in sales revenue, market share, profitability, and overall firm performance. Furthermore, in addition to the direct effect and at a significance level of 0.1, the "fit" between effective and efficient knowledge transfers are positively related to self-reported increases in sales revenue, market share, profitability and overall firm performance. Results also show that both effectiveness and efficiency in the knowledge transfer had significant direct effects on absorptive capacity development.