Comparative Analysis of Knowledge Gap Reduction and Firm Performance Based on International Managers’ Competencies in Reverse Knowledge Transfer: Evidence from Korean and Chinese Multinational Enterprises

This study examines the competencies of overseas managers that contribute to reducing knowledge gaps between headquarters and foreign subsidiaries and improving firm performance, with a particular focus on cross-national differences. Drawing on prior research, three key managerial competencies—communication competence, learning competence, and cultural openness-are identified and empirically examined. Using a comparative sample of multinational enterprises operating in Korea and China, this study analyzes the relationships among overseas managers’ competencies, knowledge gap reduction, and firm performance, while assessing the moderating role of national context. The results reveal systematic cross-country differences. In Korea, all three competencies significantly reduce knowledge gaps, but only communication and learning competences have direct effects on firm performance, with cultural openness exerting an indirect effect through knowledge gap reduction. In contrast, in China, communication and learning competences reduce knowledge gaps, and all three competencies have positive effects on firm performance. Moreover, the effects of communication and learning competences on knowledge gap reduction—and their indirect effects on firm performance—are stronger in China, whereas the effect of knowledge gap reduction on firm performance is stronger in Korea. Overall, the findings demonstrate that the effectiveness of overseas managers’ competencies is contingent upon national institutional and cultural contexts, highlighting that the mechanisms linking managerial competencies to knowledge transfer and performance outcomes are fundamentally context dependent.