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To protect their tacit knowledge in international technology transfers, transferors generally selected ownership-based hierarchical control. Related research also argued that hierarchical contracting helped to economize transaction costs in tacit knowledge transformation. However, the interests of transferees and the nature of tacit knowledge transformation were not adequately considered in the control-oriented hierarchical contracting. This paper explores how transferees in China useddoaj:3c39108098ca44f9b84f19cd6b7e5453 fatcat:xjj4eb2nynejdjawzkcnu4sbsm