Successful knowledge transfer through HRM practices and absorptive capacity: empirical evidence from cross-border M&As

HRM practices play a key role to facilitate the absorptive capacity of the acquired firms during knowledge transformation which is an essential driver for successful integration between the acquirer and acquired firms. This study examined the effect of HRM practices on knowledge transfer with the mediating effect of absorptive capacity that facilitates the post-acquisition or merger integration regarding the knowledge transfer. Data were collected from 45 acquired organisations of multinational corporations from different countries and PLS-SEM was employed for data analysis. As per findings, HRM practices have a significant relationship with the different dimensions of absorptive capacity and knowledge transfer. Moreover, the components of absorptive capacity significantly mediate the association between HRM practices and knowledge transfer. This study identified absorptive capacity as a manageable ability which can be advanced by the application of specific HRM practices and this is one of the major theoretical contributions of this study.