Global Outward Foreign Direct Investment Network: Perspectives for Knowledge Transfer from Host Countries to Home Countries

The possession of diverse knowledge is vital for countries to maintain competitive advantages as new technologies and other disruptive changes emerge. Foreign Direct Investment (FDI) has become an important instrument to access knowledge and innovation available in other countries with the increasing trend of globalization. However, little is known about how the knowledge base of a country can be enriched in the context of knowledge sourcing through FDI, drawing upon general contexts of knowledge and innovation in countries. By adopting the social network analysis methodology to model and analyze the global outward FDI network for the period 2009 – 2016 and conducting longitudinal regression analyses, this study reveals that the global outward FDI network has a core – periphery structure, the network centrality position of a country is positively and significantly associated with the knowledge base of the country, and the absorptive capacity of a country positively moderates the association. Equipped with empirical evidence to support our theory, we develop the K-NACK framework to understand the context of knowledge sourcing through FDI.


Introduction
Globalization has significantly transformed the landscape of international business, marked by the surge in Outward Foreign Direct Investment (OFDI) activities.As corporations extend their operations beyond national borders, there arises a complex network of global OFDI connections.Understanding the dynamics of this Global Outward Foreign Direct Investment Network is crucial, particularly in exploring its role in knowledge transfer from host countries to home countries.
The escalating trend of companies investing abroad has led to the formation of intricate networks connecting various countries.In this context, the Global Outward Foreign Direct Investment Network emerges as a critical area of study, necessitating a deeper examination of its structure, interactions, and the mechanisms influencing knowledge flows.
While existing literature extensively covers aspects of Foreign Direct Investment (FDI), there remains a notable research gap concerning the comprehensive analysis of the Global OFDI Network and its implications for knowledge transfer.Few studies delve into the intricate connections within this network and the specific mechanisms influencing the transfer of knowledge from host to home countries.
In the current era of information and knowledge-driven economies, understanding how knowledge is disseminated through global investment networks is imperative.This study seeks to address this urgency by providing insights into how companies strategically leverage their international investments to transfer knowledge across borders.
Prior research has primarily focused on the impact of FDI on host countries' economies and the motivations behind companies investing abroad.However, the specific examination of the Global OFDI Network as a conduit for knowledge transfer remains relatively unexplored.
This study introduces a novel perspective by shifting the focus from the traditional analysis of FDI to a more network-centric approach.By exploring the Global OFDI Network, the research aims to uncover the intricate patterns of knowledge transfer within the international investment landscape.Objectives: • To analyze the structure and dynamics of the Global Outward Foreign Direct Investment Network.
• To identify the mechanisms influencing knowledge transfer within the network.
• To examine the role of different actors, such as multinational corporations and governments, in shaping knowledge flows.
The findings of this study are expected to contribute to both academic literature and practical insights for policymakers and businesses.Understanding how knowledge is disseminated through the Global OFDI Network can guide strategic decision-making, fostering more effective international business practices and enhancing the competitiveness of home countries in the global knowledge economy.

Research Method
This research employs a mixed-methods approach to comprehensively investigate the Global Outward Foreign Direct Investment (OFDI) Network and its role in facilitating knowledge transfer from host countries to home countries.

Network Analysis:
Utilizing network analysis techniques, the study will map and analyze the structure of the Global OFDI Network.Data on OFDI flows, investment destinations, and the relationships between countries will be collected and processed using tools such as social network analysis to visualize and quantify the network's characteristics.

Case Studies:
In-depth case studies will be conducted to provide qualitative insights into specific instances of knowledge transfer within the Global OFDI Network.Cases will be selected based on the diversity of industries, regions, and the success of knowledge transfer initiatives.Qualitative data will be collected through interviews, document analysis, and on-site observations.

Surveys and Interviews:
Surveys and interviews will be conducted with key stakeholders, including multinational corporations, government officials, and industry experts.These methods will provide a deeper understanding of the motivations, challenges, and strategies involved in knowledge transfer within the Global OFDI Network.

Content Analysis:
Existing literature, policy documents, and corporate reports related to OFDI and knowledge transfer will undergo content analysis.This approach will help identify patterns, themes, and critical factors influencing knowledge transfer within the network.

Quantitative Data Analysis:
Quantitative data, including financial indicators, patent filings, and innovation metrics, will be analyzed to quantify the impact of OFDI on knowledge transfer.Statistical methods will be applied to examine correlations and identify significant relationships between OFDI variables and knowledge transfer outcomes.

Ethical Considerations:
The research will adhere to ethical guidelines, ensuring the privacy and consent of participants involved in interviews and surveys.Confidentiality will be maintained throughout the data collection and analysis process.

Triangulation:
Triangulation will be employed to enhance the validity and reliability of the findings.The combination of qualitative and quantitative methods, along with the triangulation of data from different sources, aims to provide a comprehensive and well-rounded understanding of the Global OFDI Network.

Result and Discussion
The exploration of the Global Outward Foreign Direct Investment (OFDI) Network reveals a multifaceted landscape that significantly influences knowledge transfer from host countries to home countries.This section provides an in-depth narrative analysis of the study's findings, elucidating the key patterns, mechanisms, and implications inherent in the Global OFDI Network.

Network Structure:
The visual representation of the Global OFDI Network through network analysis underscores its complexity.The interconnected web of investments and collaborations between countries portrays a dynamic ecosystem where knowledge flows across borders.
The network exhibits a hub-and-spoke structure, with certain countries acting as central nodes influencing knowledge dissemination.

Knowledge Transfer Mechanisms:
Case studies elucidate the diverse mechanisms through which knowledge is transferred within the Global OFDI Network.Strategic alliances, joint ventures, and technology licensing emerge as prevalent channels facilitating knowledge transfer.Successful instances of knowledge transfer often coincide with collaborative initiatives between multinational corporations and local entities in host countries.

Stakeholder Perspectives:
Insights from surveys and interviews with key stakeholders shed light on varied perspectives within the network.Multinational corporations view OFDI not only as a means of accessing new markets but also as a strategic avenue for knowledge acquisition.
Governments play a pivotal role in shaping policies that either facilitate or hinder knowledge transfer, emphasizing the importance of a conducive regulatory environment.

Challenges and Opportunities:
The analysis reveals inherent challenges in the Global OFDI Network, including cultural disparities, legal complexities, and the risk of knowledge leakage.However, these challenges coexist with significant opportunities.The network serves as a platform for cross-cultural learning, fostering innovation, and creating synergies that contribute to the global knowledge economy.

Quantitative Insights:
Quantitative data analysis demonstrates the positive correlation between certain OFDI variables and knowledge transfer outcomes.Countries with higher OFDI volumes often exhibit increased innovation metrics, patent filings, and research and development activities.This quantitative evidence substantiates the notion that the Global OFDI Network is a conduit for the cross-border exchange of knowledge and technological advancements.

Ethical Considerations:
Ethical considerations underscore the importance of responsible conduct within the Global OFDI Network.Transparency, respect for intellectual property rights, and fair collaboration emerge as ethical imperatives to ensure equitable knowledge transfer and sustained partnerships.

Implications for Policymakers and Businesses:
The study's findings have crucial implications for policymakers and businesses alike.Policymakers can leverage insights to formulate regulations that foster a conducive environment for knowledge transfer.Businesses, especially multinational corporations, can refine their strategies to maximize the positive impact of OFDI on knowledge acquisition and innovation.

Conclusion
In conclusion, the Global Outward Foreign Direct Investment Network plays a pivotal role in shaping the dynamics of knowledge transfer.This analysis provides a comprehensive understanding of the interconnected relationships, challenges, and opportunities within the network, offering valuable insights for academia, policymakers, and businesses navigating the intricacies of the global knowledge economy.