Skip to main content

Advertisement

SpringerLink
Log in

Knowledge management and involvement in innovations in MNC subsidiaries

  • Published:
Management International Review Aims and scope Submit manuscript

Abstract and Key Results

  • This study investigates Penrose’s analysis of the relationship between resources (especially knowledge), management of those resources and innovation in a sample of 313 Australian subsidiaries of foreign-owned multinational corporations (MNCs).

  • The frequency of use of knowledge management (KM) techniques by subsidiaries tended to be associated with factors internal to the MNC/subsidiary such as MNC size, level of technology and extent of communications networks.

  • The subsidiary’s involvement in the MNC’s innovations network tended to be associated with external factors such as the innovativeness of the industry and degree of involvement with local organizations.

  • Nevertheless, in accordance with the expectations from the literature, there remained a significant association between frequency of use of KM techniques and involvement in the innovations network of the MNC.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Ackerman, M. S., Augmenting the Organizational Memory: A Field Study of Answer Garden, Paper presented at the Proceedings of CSCW’94, 1994.

  • Ackerman, M. S./ Halverson, C. A., Reexamining Organizational Memory, Communications of the ACM, 41,1, 2000, pp. 59–64.

    Google Scholar 

  • Almeida P./ Phene A., Subsidiaries and Knowledge Creation: The Influence of the MNC and Host Country on Innovation, Strategic Management Journal, 25,8/9, 2004, pp. 847–864.

    Article  Google Scholar 

  • Amit, R./ Schoemaker, R. J. H., Strategic Assets and Organizational Rent, Strategic Management Journal, 14,1, 1993, pp. 33–46.

    Google Scholar 

  • Anand, V./ Manz, C. C./ Glick, W. H., An Organizational Memory Approach to Information Management, Academy of Management Review, 23,4, 1998, pp. 796–809.

    Article  Google Scholar 

  • Andersson, U./ Forsgren, M./ Holm, U., The Strategic Impact of External Networks: Subsidiary Performance and Competence Development in the Multinational Corporation, Strategic Management Journal, 23,11, 2002, pp. 979–996.

    Article  Google Scholar 

  • Argyris, C./ Schon, D. A., Organizational Learning, Reading, MA: Addison-Wesley 1978.

    Google Scholar 

  • Bagozzi, R. P./ Yi, Y./ Phillips, L. W., Assessing Construct Validity in Organizational Research, Administrative Science Quarterly, 36,3, 1991, pp. 421–458.

    Article  Google Scholar 

  • Barney, J. B., Firm Resources and Sustained Competitive Advantage, Journal of Management, 17,1, 1991, pp. 99–120.

    Article  Google Scholar 

  • Bartlett, C. A./ Ghoshal S., Managing Across Borders: The Transnational Solution, Boston: Harvard Business School Press 1989.

    Google Scholar 

  • Baruch, Y., Response Rates in Academic Studies: A Comparative Analysis, Human Relations, 52,4, 1999, pp. 421–438.

    Google Scholar 

  • Bell, D., The Coming of Post-industrial Society, New York: Basic Books 1973.

    Google Scholar 

  • Bjorkman, I./ Barner-Rasmussen, W./ Li, L., Managing Knowledge Transfer in Multinational Corporations: The Impact of Headquarters Control Mechanisms, Journal of International Business Studies, 35,5, 2004, pp. 433–455.

    Article  Google Scholar 

  • Black, J. A./ Boal, K. B., Strategic Resources: Traits, Configurations and Paths to Sustainable Competitive Advantage, Strategic Management Journal, 15,5, 1994, pp. 131–148.

    Google Scholar 

  • Brockman, B. K./ Morgan, R. M., The Role of Existing Knowledge in New Product Innovativeness and Performance, Decision Sciences, 34,2, 2003, pp. 385–419.

    Article  Google Scholar 

  • Buckley, P. J./ Casson, M., The Future of the Multinational Enterprise, London: Macmillan 1976.

    Google Scholar 

  • Chakravarthy, B., A New Strategy Framework for Coping with Turbulence, Sloan Management Review, 38,2, 1997, pp. 69–97.

    Google Scholar 

  • Chandler, A. D., Strategy and Structure, Cambridge: MIT Press 1962.

    Google Scholar 

  • Chiesa, V./ Barbeschi, M., Technology Strategy in Competence Based Competition, in Hamel, G./ Heene, A. (eds.), Competence Based Competition, Chichester: John Wiley 1994, pp. 293–314.

    Google Scholar 

  • Coase, R. A., The Nature of the Firm, Economica, 4,4, 1937, pp. 386–405.

    Google Scholar 

  • Coff, R. W., Bidding Wars over R&D-intensive firms: Knowledge, Opportunism, and the Market for Corporate Control, Academy of Management Journal, 46,1, 2003, pp. 74–85.

    Article  Google Scholar 

  • Coff, R. W., The Emergent Knowledge-based Theory of Competitive Advantage: An Evolutionary Approach to Integrating Economics and Management, Managerial and Decision Economics, 24,4, 2003, pp. 245–251.

    Article  Google Scholar 

  • Collis, D. J./ Montgomery, C. A., Competing on Resources: Strategy in the 1990’s, Harvard Business Review, 73,4, 1995, pp. 118–128.

    Google Scholar 

  • Coman, A., IPVM: IT Support of Concurrent Development Teams, International Journal of Technology Management, 20,3/4, 2000, pp. 388–404.

    Article  Google Scholar 

  • Conner, K. R., A Historical Comparison of Resource-based Theory and Five Schools of Thought within Industrial Organization Economics: Do We Have a New Theory of the Firm?, Journal of Management, 17,1, 1991, pp. 121–154.

    Article  Google Scholar 

  • Cross, R./ Baird L., Technology Is Not Enough: Improving Performance by Building Organizational Memory, Sloan Management Review, 41,3, 2000, pp. 69–78.

    Google Scholar 

  • Daft, R./ Weick, K., Towards a Model of Organizations As Interpretive Systems, Academy of Management Review, 9,2, 1984, pp. 284–295.

    Article  Google Scholar 

  • Davenport, T. H./ De Long, D. W./ Beers M. C., Successful Knowledge Management Projects, Sloan Management Review, 39,2, 1998, pp. 43–57.

    Google Scholar 

  • Davenport, T. H./ Prusak, L., Working Knowledge: How Organizations Manage What They Know, Boston: Harvard Business School Press 1998.

    Google Scholar 

  • Dierickx, I./ Cool K., Asset Stock Accumulation and Sustainability of Competitive Advantage, Management Science, 35,12, 1989, pp. 1504–1511.

    Google Scholar 

  • Donaldson, L., American Anti-management Theories of Organization: A Critique of Paradigm Proliferation, Cambridge: Cambridge University Press 1995.

    Google Scholar 

  • Dretske, F. I., Knowledge and the Flow of Information, Cambridge: MIT Press 1981.

    Google Scholar 

  • Dunning, J. H., The Contribution of Edith Penrose to International Business Scholarship, Management International Review, 43,1, 2003, pp. 3–19.

    Google Scholar 

  • Dzinkowski, R., The Value of Intellectual Capital, Journal of Business Strategy, 21,4, 2000, pp. 3–4.

    Google Scholar 

  • Enright, G., Discussion Database: What is Groupware? Info World Canada, 22,6, 1997, pp. 3–6.

    Google Scholar 

  • Fiol, C. M./ Lyles, M. A., Organizational Learning, Academy of Management Review, 10,4, 1985, pp. 803–813.

    Article  Google Scholar 

  • Foss, N. J., Edith Penrose: Economics and Strategic Management, in Pitelis, C. (ed.), The Growth of the Firm: The Legacy of Edith Penrose, Oxford: Oxford University Press, 2002, pp. 147–164.

    Google Scholar 

  • Foss, N. J./ Knudsen, T., The Resource-based Tangle: Towards a Sustainable Explanation of Competitive Advantage, Managerial and Decision Economics, 24,4, 2003, pp. 291–307.

    Article  Google Scholar 

  • Foss, N. J./ Pedersen, T., Organizing Knowledge Processes in Multinational Corporations: An Introduction, Journal of International Business Studies, 35,5, 2004, pp. 340–349.

    Article  Google Scholar 

  • Fruin, W. M., Knowledge Works: Managing Intellectual Capital at Toshiba, New York: Oxford University Press 1997.

    Google Scholar 

  • Garcia, R./ Calantone, R./ Levine, R., The Role of Knowledge in Resource Allocation to Exploration Versus Exploitation in Technologically Oriented Organizations, Decision Sciences, 34,2, 2003, pp. 323–349.

    Article  Google Scholar 

  • Ghoshal, S./ Bartlett, C. A., The Individualized Corporation: A Fundamentally New Approach to Management, New York: Harper Business 1997.

    Google Scholar 

  • Grover, V./ Davenport, T. H., General Perspectives on Knowledge Management: Fostering a Research Agenda, Journal of Management Information Systems, 18,1, pp. 5–21.

  • Gupta, A. K./ Govindarajan, V., Knowledge Flows and the Structure of Control within Multinational Corporations, Academy of Management Review, 16,4, 1991, pp. 768–792.

    Article  Google Scholar 

  • Gupta, A. K./ Govindarajan, V., Knowledge Flows within Multinational Corporations, Strategic Management Journal, 21,4, 2000, pp. 473–496.

    Article  Google Scholar 

  • Hair, J. F./ Anderson, R. E./ Tatham, R. L., Multivariate Data Analysis with Readings, 6th ed., Upper Saddle River, NY: Prentice-Hall 2002.

    Google Scholar 

  • Hamel, G./ Prahalad, C. K., Competing for the Future: Breakthrough Strategies for Seizing Control of Your Industry and Creating the Markets of Tomorrow, Boston: Harvard Business School Press 1994.

    Google Scholar 

  • Hansen, M. T./ Lovas, B., How Do Multinational Companies Leverage Technological Competencies? Moving from Single to Interdependent Explanations, Strategic Management Journal, 25,8/9, 2004, pp. 801–822.

    Article  Google Scholar 

  • Hedlund, G., The Hypermodern MNC: A Heterarchy? Human Resource Management, 25,1, 1986, pp. 9–35.

    Google Scholar 

  • Helleloid, D./ Simonin, B., Organisational Learning and a Firm’s Core Competence, in Hamel, G./ Heene, A. (eds.), Competence Based Competition, Chichester: John Wiley 1994, pp. 213–239.

    Google Scholar 

  • Hofstede, G., Culture’s Consequences: International Differences in Work-related Values. London: Sage 1984.

    Google Scholar 

  • Hult, G. T., An Integration of Thoughts on Knowledge Management, Decision Sciences, 34,2, 2003, pp. 189–195.

    Article  Google Scholar 

  • Hurley, R. F./ Hult, G. T., Innovation, Market Orientation and Organizational Learning: An Integration and Empirical Examination, Journal of Marketing, 62,3, pp. 42–54.

  • Hutcheson, G. D./ Sofroniou, N., The Multivariate Social Scientist: Introductory Statistics Using Generalized Linear Models, London: Sage 1999.

    Google Scholar 

  • Hymer, S. H., The International Operations of National Firms: A Study of Direct Investment, Cambridge: MIT Press 1976.

    Google Scholar 

  • Janz, B. D./ Prasarnphanich, P., Understanding the Antecedents of Effective Knowledge Management: The Importance of a Knowledge-centered Culture, Decision Sciences, 34,2, 2003, pp. 351–384.

    Article  Google Scholar 

  • Jaworski, B./ Kohli, A. K., Market Orientation: Antecedents and Consequences, Journal of Marketing, 57,3, 1993, pp. 53–70.

    Article  Google Scholar 

  • Kearns, G. S./ Lederer, A. L., A Resource-based View of Strategic IT Alignment: How Knowledge Sharing Creates Competitive Advantage, Decision Sciences, 34,1, 2003, pp. 1–29.

    Article  Google Scholar 

  • Kor, Y. Y./ Mahoney, J. T., Edith Penrose’s (1959) Contributions to the Resource-based View of Strategic Management, Journal of Management Studies, 41,1, 2004, pp. 183–191.

    Article  Google Scholar 

  • Lockett, A./ Thompson, S., Edith Penrose’s Contributions to the Resource-based View: An Alternative Perspective, Journal of Management Studies, 41,1, 2004, pp. 193–203.

    Article  Google Scholar 

  • Moorehead, A./ Steele, M./ Alexander, M./ Stephen, K./ Duffin, L., Changes at Work: The 1995 Australian Workplace Industrial Relations Survey, South Melbourne: Longman 1997.

    Google Scholar 

  • Moorman, C./ Miner, A. S., The Impact of Organizational Memory on New Product Performance and Creativity, Journal of Marketing Research, 34,1, 1997, pp. 91–106.

    Article  Google Scholar 

  • Moorman, C./ Miner, A. S., Organizational Improvisation and Organizational Memory, Academy of Management Review, 23,4, 1998, pp. 698–723.

    Article  Google Scholar 

  • Morgan, N. A./ Zou, S./ Vorhies, D. W./ Katsikeas, C. S., Experiential and Informational Knowledge, Architectural Marketing Capabilities, and the Adaptive Performance of Export Ventures: A Cross-national Study, Decision Sciences, 34,2, 2003, pp. 287–321.

    Article  Google Scholar 

  • Muammer, O., The Use of Internet-based Groupware in New Product Forecasting, Journal of the Market Research Society, 41,4, 1999, pp. 425.

    Google Scholar 

  • Nahapiet, J./ Ghoshal, S., Social Capital, Intellectual Capital and the Organizational Advantage, Academy of Management Review, 23,2, 1998, pp. 242–266.

    Article  Google Scholar 

  • Nielsen, B. B./ Ciabuschi, F., Siemens ShareNet: Knowledge Management in Practice, Business Strategy Review, 14,2, 2003, pp. 33.

    Article  Google Scholar 

  • Nohria, N./ Ghoshal, S., The Differentiated Network: Organizing Multinational Corporations for Value Creation, San Francisco: Jossey-Bass 1997.

    Google Scholar 

  • Nonaka, I., A Dynamic Theory of Organizational Knowledge Creation, Organization Science, 5,1, 1994, pp. 14–37.

    Article  Google Scholar 

  • Nonaka, I./ Konno, N., The Concept of “Ba”: Building Foundations for Knowledge Creation, California Management Review, 40,3, 1989, pp. 40–54.

    Google Scholar 

  • Nonaka, I./ Reinmoeller, P., Knowledge Creation and Utilization: Promoting Dynamic Systems of Creative Routines, in Hitt, M.A./ Amit, R./ Lucier, C. E./ Nixon, R. D. (eds.), Creating Value: Winners in the New Business Environment, Oxford: Blackwell 2003.

    Google Scholar 

  • Nonaka, I./ Takeuchi, H., The Knowledge-creating Company: How Japanese Companies Create the Dynamics of Innovation, New York, Oxford University Press 1995.

    Google Scholar 

  • Orlikowski, W. J., Hofman, J. D., An Improvisational Model for Change Management: The Case of Groupware Technologies, Sloan Management Review, 38,2, 1997, pp. 11–21.

    Google Scholar 

  • Penrose, E. T., The Theory of the Growth of the Firm, Oxford: Blackwell 1959.

    Google Scholar 

  • Penrose, E. T. The Growth of the Firm: A Case Study: The Hercules Powder Company, Business History Review, 34,1, 1960, pp. 1–23.

    Article  Google Scholar 

  • Peteraf, M., The Cornerstones of Competitive Advantage: A Resource-based View, Strategic Management Journal, 14,3, 1993, pp. 179–191.

    Google Scholar 

  • Pitelis, C. N., Edith Penrose and the Resource-based View of (International) Business Strategy, International Business Review, 13,4, 2004, pp. 523–532.

    Article  Google Scholar 

  • Polanyi, M., The Tacit Dimension, London: Routledge & Kegan Paul 1967.

    Google Scholar 

  • Priem, R.L./ Butler, J. E., Is the Resource-based ‘View’ a Useful Perspective for Strategic Management Research?, Academy of Management Review, 26,1, 2001, pp. 22–40.

    Article  Google Scholar 

  • Quinn, J. B., Intelligent Enterprise, New York: Free Press 1992.

    Google Scholar 

  • Ramarapu, N. K./ Simkin M. G./ Raisinghani M., The Analysis and Study of the Impact of Technology on Groups: A Conceptual Framework, International Journal of Information Management, 19,2, 1999, pp. 157–172.

    Article  Google Scholar 

  • Rugman, A. M./ Verbeke, A., Edith Penrose’s Contribution to the Resource-based View of Strategic Management, Strategic Management Journal, 23,8, 2002, pp. 769–780.

    Article  Google Scholar 

  • Sabherwal, R./ Becerra-Fernandez, I., An Empirical Study of the Effect of Knowledge Management Processes at Individual, Group and Organizational Levels, Decision Sciences, 34,2, 2003, pp. 225–260.

    Article  Google Scholar 

  • Schmid, S./ Schung, A., The Development of Critical Capabilities in Foreign Subsidiaries: Disentangling the Role of the Subsidiary’s Business Network, International Business Review, 12,6, 2003, pp. 755–782

    Article  Google Scholar 

  • Storck, J./ Hill P. A., Knowledge Diffusion Through “Strategic Communities”, Sloan Management Review, 41,2, pp. 63–74.

  • Szulanski, G., Exploring Internal Stickiness: Impediments to the Transfer of Best Practice within the Firm, Strategic Management Journal, 17, Special Issue, 1996, pp. 27–43.

    Google Scholar 

  • Teece, D. J. (ed.), The Competitive Challenge: Strategies for Industrial Innovation and Renewal, Cambridge: Ballinger 1987.

    Google Scholar 

  • Teece, D. J., Capturing Value from Knowledge Assets: The New Economy, Markets for Know-how and Intangible Assets, California Management Review, 4,3, 1998, pp. 55–79.

    Google Scholar 

  • Teece, D. J./ Pisano, G./ Shuen, A., Dynamic Capabilities and Strategic Management, Strategic Management Journal, 18,7, 1997, pp. 509–533.

    Article  Google Scholar 

  • Walsh, J. P./ Ungson, G. R., Organizational Memory, Academy of Management Review, 16,1, 1991, pp. 57–91.

    Article  Google Scholar 

  • Wernerfelt, B., A Resource Based View of the Firm, Strategic Management Journal, 5,2, 1984, pp. 171–180.

    Google Scholar 

  • Williamson, O. E., Markets and Hierarchies, New York: Free Press 1975.

    Google Scholar 

  • Yamin, M./ Otto, J., Patterns of Knowledge Flows and MNE Innovative Performance, Journal of International Management, 10,2, 2004, pp. 239–258.

    Article  Google Scholar 

  • Zack, M. H., Managing Codified Knowledge, Sloan Management Review, 40,4, 1999, pp. 45–58.

    Google Scholar 

  • Zack, M. H., Developing a Knowledge Strategy, California Management Review, 41,3, 1999, pp. 125–145.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. University of Melbourne, Melbourne, Australia

    Stewart Johnston (Senior Lecturer in Strategy and International Business) &  Angela Paladino (Lecturer in Marketing)

Authors
  1. Stewart Johnston
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Angela Paladino
    View author publications

    You can also search for this author in PubMed Google Scholar

Additional information

An earlier version of this paper received the International Management stream best paper award at the 2004 Australia and New Zealand Academy of Management conference.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Johnston, S., Paladino, A. Knowledge management and involvement in innovations in MNC subsidiaries. MANAGE. INT. REV. 47, 281–302 (2007). https://doi.org/10.1007/s11575-007-0016-2

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11575-007-0016-2

Key Words

Search

Navigation