Dimensions of Foreign Subsidiary’s Absorptive Capacity in the Context of Knowledge Transfer through Expatriation*

The absorptive capacity is one of the dynamic capabilities determining organizational development, including international expansion. This also refers to foreign subsidiaries, which receive significant portion of knowledge from headquarters and other units through expatriation. However, effects of such knowledge transfers are affected by absorptive capacity of a subsidiary. While considering the issue of the transfer, it is recommended to assess the readiness and willingness of subsidiary employees to learn from expatriates and change. These qualities are, undoubtedly, an essential component of organizational absorptive capacity, however its content seems to be more complex, due to its multidimensional and contextual nature. Therefore, the author attempts to apply this concept in the context of expatriate knowledge transfer*.