Abstract
This paper investigates vertical knowledge transfers from inward-invested multinational enterprises to indigenous Chinese suppliers in the electrical and electronics industry in Wuxi, China. Through 16 dyadic case studies, a three-stage pathway of relationship development is established in which the types of knowledge transferred evolve as the relationship and the cooperative activities within it, deepen. Contingency factors are found to either accelerate or prolong the relationship development at each stage. We conclude with implications of our findings for academic scholars and managers. © 2007 Elsevier Ltd. All rights reserved.