Abstract
In recent years, the concept of sustainable development has become increasingly important in international business. This concept focuses on integrating environmental, social and economic considerations into decision-making. As such, it has become an increasingly important factor in the process of international acquisitions. In this respect, the role of emotion in the knowledge transfer process in these acquisitions is of particular importance. Emotions are known to play a key role in the decision-making process. However, the study examined the role of emotion and sustainable development in the context of knowledge transfer in international acquisitions. A qualitative research approach with a single case was adopted to critically investigate the role of emotion evolution in the process of knowledge transfer. A purposive sampling technique was employed in this study to select 15 CEOs of leading firms in the United Kingdom who participated in this study. Semi-structured interview was adopted for data collections. QSR NVivo 12 software was employed in this study to conduct thematic analysis. The finding of this study revealed that emotions evolution facilitates the process of multi-direction of knowledge transfer between parent and subsidiary firms. In addition, negative emotion was found to develop challenges in the process of knowledge transfer between parent and subsidiary employees. The managerial relevance which emerged from the findings of this study suggest that sustainable development is a long-term process, it is important to ensure that emotions are managed effectively in order to ensure continued progress. This can be done through the use of effective communication and the development of trust between the parties involved.