Unlocking Knowledge Transfer in International Assignments: A Structural Equation Modelling Study of Expatriate AMO Competencies and Local Absorptive Capacity CACOK @ MUHATHIR BIN MUHAMAD NOR, DR NOR AZAIRIAH FATIMAH OTHMAN, DR AKMAL AINI OTHMAN, OSWALD TIMOTHY EDWARD
Universiti Teknologi MARA Malaysia
Abstract
International assignments have become a strategic tool for multinational corporations (MNCs) to transfer managerial and technical knowledge across borders, fostering global workforce development and organizational competitiveness. However, despite their prevalence, many organizations struggle to achieve successful knowledge transfer during these assignments due to challenges such as cultural barriers, expatriate adaptability, and the recipient^s capacity to absorb new knowledge. This study examines the key factors that influence the success of knowledge transfer in international assignments, with a focus on expatriate competencies: ability, motivation, and opportunity-seeking and the mediating role of local staff^s absorptive capacity within Malaysia^s manufacturing sector. A quantitative research design was employed, utilizing a survey method to collect data from 195 local employees working directly with expatriates in manufacturing firms across the Johor, Selangor, and Penang regions, which were selected for their high concentration of multinational operations. The survey assessed perceptions of expatriate competencies, absorptive capacity, and knowledge transfer success using validated scales from prior studies. Data analysis was conducted using Partial Least Squares Structural Equation Modelling (PLS-SEM), which is particularly suited for complex models with mediating variables and non-normal data distributions. The findings reveal that expatriate ability, motivation, and opportunity-seeking positively influence knowledge transfer success, with absorptive capacity significantly mediating these relationships. Notably, opportunity-seeking emerged as the strongest predictor, highlighting the importance of proactive interactions in knowledge transfer. The study also underscores the critical role of local staff^s absorptive capacity in effectively assimilating and applying transferred knowledge. This research contributes to the literature by integrating the Ability-Motivation-Opportunity (AMO) theory with absorptive capacity theory, thereby providing a comprehensive framework for understanding the dynamics of knowledge transfer in international assignments. The findings offer practical insights for organizations to enhance expatriate selection, training, and knowledge-sharing strategies, ultimately improving the success of international assignments and fostering local staff development.
Keywords: Knowledge Transfer Expatriate Competencies Absorptive Capacity International Assignments Malaysian Manufacturing Sector
