Reverse knowledge transfer in digital era and its effect on ambidextrous innovation: A simulation based on system...

Area of Science:

• Business Administration
• Innovation Management
• Digital Transformation

Background:

• Multinational corporations (MNCs) leverage knowledge transfer for innovation.
• Reverse knowledge transfer (RKT) from subsidiaries to parent companies is underexplored in the digital age.
• Ambidextrous innovation, balancing exploration and exploitation, is crucial for sustained growth.

Purpose of the Study:

• To investigate the impact of RKT on ambidextrous innovation within MNCs.
• To examine the mediating role of digital technology in the RKT process.
• To understand the mechanisms of knowledge acquisition, absorption, and application in RKT.

Main Methods:

• Development of a system dynamics model for RKT.
• Simulation analysis to test hypotheses regarding RKT and innovation.
• Focus on dual embeddedness of R&D centers and digital technology adoption.

Main Results:

• Dual embeddedness of R&D centers positively influences knowledge acquisition and absorption.
• Enhanced knowledge base in parent companies facilitates ambidextrous innovation.
• Digital technology significantly boosts RKT, especially through knowledge absorption, with long-term benefits.

Conclusions:

• RKT is a vital driver of ambidextrous innovation for MNCs.
• Digital technology amplifies the effectiveness of RKT, particularly knowledge absorption.
• The study contributes to RKT literature and highlights digital technology's role in MNC innovation strategies.