ABSTRACT
The purpose of this chapter is to survey organizational factors that are effective in transferring subsidiary knowledge to parent companies. Peer subsidiaries are analyzed using multivariate regression, for 81 foreign subsidiaries in Iran. In global learning, it is significant to be aware of valuable knowledge accumulated at the subsidiary level and to utilize such knowledge to benefit the whole organization at the corporate level. The knowledge sharing between parent and subsidiary takes place through vertical exchange relationships, while among peer subsidiaries are based on lateral relationships. Knowledge flows from units that are relatively knowledge-rich to units that are relatively knowledge-poor. The accumulation of new knowledge at the subsidiary level is a prerequisite for global learning and knowledge transfer in multinational corporations (MNCs). However, subsidiary-specific knowledge is often tacit and sticky, making it difficult to transfer to other subunits. Two major factors influence the amount of knowledge transfers:
The stock of knowledge possessed by the subsidiary.
The effectiveness of knowledge transfer mechanisms.
