1 3 https://doi.org/10.1007/s13132-021-00777-y The Changing Nature of Expatriation: The Emerging Role of Knowledge Transfer Readiness Dian Prihadyanti 1  · Karlina Sari 1  · Dudi Hidayat 1  · Nur Laili 1  · Budi Triyono 1  · Chichi Shintia Laksani 2 Received: 29 January 2020 / Accepted: 24 February 2021 © The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature 2021 Abstract Expatriate is one of the potential sources of knowledge for firms to increase their capability in creating innovation. Currently, Indonesia has a relatively small number of expatriates but the figure tends to increase overtime. This country has experi- enced a changing nature of expatriation that brings consequences to several condi- tions for the achievement of successful knowledge transfer (KT) from expatriates to local employee in Indonesian local firms. This paper proposes a new concept namely Knowledge Transfer Readiness (KTR) which is beneficial in helping the firms to deal with the changing nature. Combining grounded research and multiple case studies to apply this concept to the Indonesian local firms, it is argued that not all of the elements in KTR’s dimensions must be fulfilled in excellent conditions. Weak elements from the source’s side can be surmounted by fulfilling excellent condition of recipient’s side, and vice versa. Nevertheless, there are elements that must be ful- filled in excellent condition of both sides, or becomes absolute requirements solely for the expatriates. The fulfillment of KTR’s elements influences the relationship qualities between expatriates and local employees to achieve Knowledge Transfer Quality (KTQ). The KTQ includes the amount and the accuracy of knowledge and depth of understanding, so it can be a new option of qualitative indicator to measure the success of KT. Keywords Knowledge Transfer · Expatriation · Human Resources Management · Strategic Management · Knowledge Sharing · Innovation Capability * Dian Prihadyanti dian.prihadyanti@gmail.com 1 Research Center for Policy and Management of Science, Technology, and Innovation, Indonesian Institute of Sciences, Jakarta, Indonesia 2 Center for Science and Technology Utilization and Innovation, Indonesian Institute of Sciences, West Java, Indonesia Journal of the Knowledge Economy (2022) 13:1496–1541 Published online: 25 March 2021 /