The Effect of HRM Practices on MNC Subsidiaries' Knowledge Transfer in Thailand

The study investigated how MNCs mobilise knowledge transfer fit in subsidiaries recipients. The hypotheses are developed that the knowledge transfer process via personnel aspects enhances the individual and organisational team competency to generate and transfer knowledge to fit with their recipients' needs. This empirical study is based on the data collected from two rounds of mailed questionnaire surveys of 600 MNC subsidiaries in Thailand. A total of 83 usable responses were returned, representing a response rate of 14%. The empirical results clarify some issues and propose the boundary conditions: (a) Firms should select people and orient with the kinds of knowledge to be transferred to take advantage of their effects on performance and (b) the importance of knowledge transfer through people's mobility across focal subsidiary as key drivers behind MNC's remarkable success. However, firms should not forget that in developing countries, there may be weaker informational capabilities and limited support industries.