KNOWLEDGE TRANSFER, COMPETITIVE ADVANTAGE & FIRM PERFORMANCE OF GERMANY-BASED SUBSIDIARIES OPERATING IN MALAYSIA: MODERATED BY CULTURAL INTELLIGENCE

Abstract

This paper examines the relationship of knowledge transfer with firm performance of a sample of Germany-based subsidiaries operating in Malaysia. It analyses the roles of knowledge transfer on the firm’s competitive advantage which influence firm performance. Hence, knowledge transfer is mediated by competitive advantage. The literature studies of knowledge transfer focused on codification knowledge transfer and personalization knowledge transfer. In addition, the strength and opportunity of this relationship is tested using cultural intelligence as a moderator. Cultural intelligence is highly related to study conducted in Malaysia as Malaysia is a multiracial country. This paper used structural equation modelling in SPSS-AMOS to test the relationships between knowledge transfer and firm performance with competitive advantage as mediator and cultural intelligence as moderator. The findings support the proposed hypotheses as applicable to Germany-based subsidiaries operating in Malaysia.