An Analysis of the Impact of Reverse Knowledge Transfer on Firm Performance: The Moderating Role of Foreign Subsidiary Capabilities and Vision Sharing

This study examines the effects of reverse knowledge transfer on firm performance, challenging the assumption that knowledge acquired by foreign subsidiaries always strengthens a firm's core competencies. Based on a survey of 256 respondents from global firms, the results indicate that higher levels of knowledge transfer from foreign subsidiaries to headquarters are positively associated with firm performance. However, this relationship is significantly moderated by the capabilities of the foreign subsidiaries and the extent of vision sharing between subsidiaries and headquarters. Specifically, when foreign subsidiaries have lower capabilities or when vision sharing is limited, the positive impact of reverse knowledge transfer on firm performance can turn negative. These findings highlight the critical role of both structural and social control mechanisms in influencing the effectiveness of reverse knowledge transfer within global firms.