Forms of host‐country national learning for enhanced MNC absorptive capacity

Abstract

Purpose

Aims to examine within the theoretical construct of absorptive capacity several forms of host country national (HCN) learning, leading to improved productivity in the foreign operation, and ultimately yielding more effective knowledge generation and flow throughout the multinational corporation (MNC).

Design/methodology/approach

Used open‐ended exploratory field interviews with 51 host country human resource and middle managers in 49 different MNC foreign subsidiaries with headquarters in six different countries. Learning needs in three major employee levels of operative, supervisory/middle management, and upper management were examined. Notes from the interviews were recorded by hand and combined and analyzed for evidence of potentially beneficial forms of HCN learning using procedures of domain and theme analysis in taxonomy development.

Findings

A total of 12 categories of potentially beneficial forms of HCN learning were identified and discussed relative to their contributions to increased absorptive capacity. These forms of learning included such areas as new employee orientation and entry job skills, MNC predominant language, MNC home country cross‐cultural awareness, supervision and technical operations management skills, expatriate coaching and liaison skills, and MNC strategy and culture.

Research limitations/implications

Provides helpful insights on absorptive capacity to promote further theory development, as well as practical guidance for future HCN training to enhance the effective transfer of management knowledge and practice.

Originality/value

Past research in international management has had a predominant focus on expatriates, failing to identify important contributions that can be made by host country nationals to promote the effective transfer of knowledge throughout the multinational organization.

Citation

Vance, C.M. and Paik, Y. (2005), "Forms of host‐country national learning for enhanced MNC absorptive capacity", Journal of Managerial Psychology, Vol. 20 No. 7, pp. 590-606. https://doi.org/10.1108/02683940510623407