BUKU ABSTRAK - Universiti Putra Malaysia

The Influences of Absorptive Capacity and Social Capital on Knowledge Transfer
Reciprocity at Any Cost?
Dr. Naresh Kumar
Raduan Che Rose and Nurul Fatiha Abdul Muien
Faculty of Economics and Management, University Putra Malaysia,
43400 UPM Serdang, Selangor, Malaysia.
+603-8946 7632; naresh@putra.upm.edu.my
Keywords: Absorptive capacity, knowledge transfer, Malaysia, multinational corporation, social capital
Dr. Ng Siew Imm
Lau Yeng Wai and Ho Jo Ann
Faculty of Economics and Management, University Putra Malaysia,
43400 UPM Serdang, Selangor, Malaysia.
+603-8946 7692; siewimm@econ.upm.edu.my
Keywords: Relationship-marketing, cultural value dimensions, reciprocity, business ethics
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Social Sciences
This study investigated the current business practices in Japanese electrical and electronics manufacturing
subsidiaries as well as the influences of both absorptive capacity and social capital on knowledge transfer within
the firms’ intra-MNC network in the wake of full AFTA implementation in 2018. Results showed that employees
are generally satisfied with the current practices in these subsidiaries with relation to the eight dimensions being
studied; learning system, training, communication, reward, promotion, compensation, trust and centrality. This
study also found that absorptive capacity has definite but small relationship with knowledge transfer, while social
capital bears much more substantial relationship with the former.
This case on business culture in Malaysia presents an opportunity for post-graduate and final year
undergraduate students the exposure on relationship-marketing, cultural value dimensions, reciprocity as well
as ethical issues. The case was about a breach of verbal trust given to a client who resulted in the focal company
facing the risk of losing significant amount of time and financial losses. This case has a moderate level of difficulty
and may be used to teach marketing, cross-cultural management and business ethics.