LAUSR

Purpose The purpose of this study is to pinpoint key conduits promoting knowledge spillovers through inward foreign direct investment (FDI) in the banking sector. Design/methodology/approach The data were obtained by a survey. The survey data were collected from managers of five major local banks in Korea. The survey was conducted during May 10th – June 30th, 2015 with a total of 581 self-administered responses finally collected at the end (response rate: 60.5%). Findings Based on the survey data collected from the survey, our results indicate that knowledge spillovers from foreign to local banks occur in the Korean context. Demonstration effect, worker mobility and absorptive capacity of local banks are found to be effective conduits for knowledge spillovers. In addition, we have also found that competitive pressure negatively influences worker mobility leading to knowledge spillovers while two other elements (i.e., demonstration effect and absorptive capacity) positively mediate the relationship between...