Industrial Management & Data Systems

Purpose – The purpose of this paper is to provide information for the companies that pretend to transfer knowledge to their subsidiaries situated in an least developed country (LDC), because of the local operative specificity which is influenced by three analytical dimensions: first, the multinational enterprise's (MNE) ability to transfer knowledge; second, the climate of cooperation between the MNE and its subsidiary; and third, the subsidiary's absorptive capacity.

Design/methodology/approach – The present case study deals with three companies with subsidiaries in Mozambique which develop activities in the industrial sector, where the procedures of the analysis of contents are applied in order to answer the research questions.

Findings – The results show that the transferred knowledge must be directed at the operational needs felt locally. It must be avoided that the receiver believes the transferred knowledge is imposed by the transmitter, in order for it to be used as an asset in the production of new products, but without reproducing the MNE headquarters' business model because of the specific local context.

Research limitations/implications – The case study method does not allow the results to be generalized, but it permits the investigation of a combination of problems of the phenomenon thus contributing to its better understanding.

Originality/value – The results obtained contribute to a better understanding and greater efficiency of the process of knowledge transfer to the subsidiaries situated in an LDC, taking into consideration the particular characteristics of the local market and the local absorptive capacity.