The Mediating Effects of Organizational Culture Similarity on the Path of the Knowledge Transfer to Foreign Subsidiary

In the sense of the needs of knowledge transfer enhance the performance of the subsidies, knowledge transfer is important for MNEs. This study presents a integrated analytical models can explore the relationship between the relational asset between headquarter and subsidiary, the cultural similarity, the absorptive capacity and the performance of foreign subsidiary. Using the 5 potential variables measured by nineteen questions and there are 8 hypotheses including the mediating effects of the cultural similarity. This study perform the empirical analysis about total 203 foreign subsidiaries used by the structural equation model. In the result, the commitment has a positive effect on the cultural similarity but dose not have the effect on the absorptive capacity. But it has a positive effect on the absorptive capacity. The cultural similarity has a positive effect on the absorptive capacity. Also, the absorptive capacity affects on the management performance. The analysis of the mediating effects of the cultural similarity shows a full mediating only the relationship the commitment and absorptive capacity. That is, it gives an implication to the research that is trying to classify and analyze the roles of organizational culture similarity according to the form of previous knowledge. This is because it can be assumed that organizational culture similarity plays a role in transferring an implicit form of knowledge.