Factors of Knowledge Transfer in Global Production Network: In View of a Developing Country

Abstract

At present, global production network (GPN) has become one of the new figures of the globalization tide. It opens an opportunity window for developing countries to learn from GPN. The paper proposes a 2-stage model describing the factors of knowledge transfer from global production flagships (GPF) to its participants in developing countries. In the first stage, there are two factors affecting the extent of knowledge from GPF to its participants: transfer activities and relationship between the two parties. In the second stage, knowledge from GPF, relative absorptive capacity and absorptive capacity of the local firm are considered as the three main factors affecting the efficiency of knowledge transfer. To test the model, we survey 105 manufacturing firms in China via questionnaires. Further, how the form to participate in GPN influences knowledge transfer is also examined.