Efects Of Reverse Knowledge Transfer Of Overseas Subsidiaries On Parent Innovation Performance In Chinese Manufacturing Industry

In recent years,the overseas investment activities of Chinese companies have been expanded,and the rapid development of Chinese foreign direct investment has also promoted the emergence and growth of Chinese multinational companies.Although multinational companies in emerging markets are rapidly expanding to overcome the shortcomings of latecomers,they often make these multinational companies lack knowledge or expertise.The knowledge of subsidiaries is conducive to overcoming these shortcomings of multinational companies in emerging markets,facilitating the generation of knowledge of multinational corporations and helping to enhance the global competitive advantage of multinational corporations.Therefore,as multinational corporations in emerging markets,how to promote reverse knowledge transfer of overseas subsidiaries and how to effectively play the role of reverse knowledge transfer of overseas subsidiaries in order to enhance the competitive advantage of parent companies has become an important practical problem to be solved urgently by multinational corporations in developing countries.Based on the existing research results,this paper conducts an empirical study using panel data of Chinese manufacturing multinationals from 2010 to 2016.This paper mainly discusses the different influences of overseas subsidiaries of countries with different technical levels and the different types of knowledge transferred on the innovation performance of the parent company.In this paper,the fixed effect model and ordinary least square estimation are used for verification.The research mainly includes the following parts:(1)Based on knowledge-based view and springboard theory,this paper mainly considers the two types of knowledge possessed by overseas subsidiaries,namely,the influence of technological knowledge and managerial know-how on the innovation performance of parent companies,and how the transfer of technological knowledge and managerial know-how of subsidiaries may affect the innovation performance of parent when foreign innovation dominates and domestic innovation dominates respectively is discussed.(2)In this paper,independent variables,dependent variables and control variables are selected,and relevant variables are obtained through the website of the Ministry of Commerce,CSMAR database.Among them,the dependent variable is the parent innovation performance;the independent variable is the subsidiary technology transfer,parent return and the parent R&D intensity;and several variables are selected from the level of subsidiary company,parent company and national level to control.The control variables at the level of subsidiary company are the subsidiary R&D intensity,the subsidiary size and the control variables at the level of parent company are the MNC size.At the national level,the control variables are trade openness,economic development level,geographical distance and and institutional factors.(3)This paper uses panel data of manufacturing multinational corporations in China from 2010 to 2016,and uses Stata 13.0 to make descriptive statistics,correlation test and measurement method selection for research samples.The countries of overseas subsidiaries under the background of domestic leading technology innovation are further divided into leading technology countries and lagging technology countries.Models 1~6 are established.Fixed effect and ordinary least squares method are used to estimate countries with different technological levels for grouping analysis.The results show that subsidiary knowledge provides different advantages for parent,mainly depending on the relative differences of technology environment at home and abroad and the type of knowledge transferred from subsidiary company to parent.(1)When the host country's innovation dominates,the subsidiary's technological knowledge transfer has a positive impact on the parent innovation performance;the subsidiary's managerial know-how transfer will not improve the parent innovation performance;the combination of technological knowledge and managerial know-how of the subsidiary will not improve the parent innovation performance;(2)When the innovation of the home country is dominant,the investment of local innovative assets in foreign subsidiaries located in leading technology countries improves the parent innovation performance,while the technology transfer of subsidiaries located in lagging technology countries has a positive impact on the parent innovation performance;the transfer of managerial know-how of subsidiaries located in leading technology countries has a significant and positive impact on the parent innovation performance;the combination of managerial-how knowledge transfer and local innovative asset investment in subsidiaries of leading technology countries enhances the parent innovation performance.