New article co-authored by Xiaolan Fu explores reverse learning by emerging market MNEs

08 May, 2018

A new article co-authored by Professor Xiaolan Fu develops a model of reverse knowledge acquisition in emerging market multinational enterprises (MNEs).

The article, which is published in the Journal of Business Research, is co-authored with Zhongjuan Sun of Beijing's Capital University of Economics and Business and Pervez N Ghauri of Birmingham Business School, UK.

Based on case studies of the international operations of leading Chinese MNEs in developed countries, the study develops a reverse-knowledge-acquisition model for emerging market MNEs through processes of subsidiary-led reverse learning, knowledge-sharing and integration.

It unpacks MNEs' external learning processes and contributes to the literature by exploring three mechanisms of learning, sharing and integration. It finds three reverse-learning channels, including learning from customers, collaborators and host economies; a multi-level, hub-and-spoke-type knowledge-acquisition mechanism, including vertical exchange between parents and subsidiaries and horizontal sharing among subsidiaries; and a two-tier, three-step integration mechanism, including leveraging, renewing and releasing resources.

Xiaolan Fu, Zhongjuan Sun and Pervez N Ghauri (2018) 'Reverse knowledge acquisition in emerging market MNEs: The experiences of Huawei and ZTE', Journal of Business Research, DOI: 10.1016/j.jbusres.2018.04.022