What is Heeding Capacity

Multinational organizations are global knowledge transfer systems where multiple knowledge flows happen simultaneously between HQ, local clusters, and subsidiaries. HQs are irreplaceable sources of knowledge for the subsidiaries, since they possess valuable intangible assets and capabilities, used in the local markets. On the other hand, the local knowledge transferred from the subsidiaries to the HQs benefits the multinational's productivity and local performance, improving the formulation of global strategies, facilitating the access to external resources and supporting on R&D and NPD activities. The goal of this chapter is to deepen the literature on reverse knowledge transfers in which knowledge flows from the subsidiary to the HQ. This chapter seeks to explore the key success factors that influence reverse knowledge transfers within multinationals. It categorizes knowledge transfers within three groups: subsidiary's characteristics, knowledge characteristics and relationship between HQ and subsidiary. The chapter also aims to explain the outcomes of these knowledge flows.