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The rising opportunities in emerging countries have attracted numerous multinational corporations to invest in the new regimes. Knowledge management between headquarters and their foreign subsidiaries, thus, becomes particularly crucial in navigating host country environmental uncertainties. Despite its criticality, how foreign subsidiaries can benefit from effectively managing knowledge remains unclear. This study examines the extent to which market and technological turbulences influence two specific knowledge management platforms, knowledge transfer and knowledge codification, and subsequently, market responsiveness of foreign subsidiaries. Results from a survey of 140 foreign subsidiaries in China show that knowledge transfer and knowledge codification serve as two important platforms to mitigate the effects of environmental turbulence on local market responsiveness.

The increasing pace of global competition has recast the balance between multinational corporations’ (MNCs’) needs to protect the knowledge that underlies their competitive advantages and their needs to continually create new knowledge. This essay will discuss MNCs’ knowledge-seeking strategies as industry-level phenomena. I will argue that knowledge-seeking strategies demand a concept of industries both as arenas for competition and as global knowledge networks within which firms collaborate to innovate. Contemporary MNCs face challenges to function not only as self-contained production systems that internationalize in the search for efficiency and markets, but also as open systems globally seeking knowledge and innovations. Metanational strategies and organizations represent a new response to these challenges. I present empirical evidence of distinctive metanational industry opportunities and organizational responses from the emergence of the global flat panel display industry. The essay concludes with a framework that outlines the characteristics of a global knowledge-driven generic strategy as an alternative and synthesis of generic product-driven strategies of cost-leadership and differentiation.

Rolling out lean operations practices in MNCs’ plants is a complex knowledge transfer process whose design and implementation, though critical to operations performance, to date has not been investigated by operations management, international business, strategy, and organizational design research. Applying conceptual tools drawn from various theoretical approaches to knowledge management, transfer and diffusion, this exploratory study: (a) classifies and interprets lean roll-out processes in MNCs, framing them in terms of (i) knowledge replication strategies (template vs. principles-based), (ii) decentralization of decision making (degree of plant autonomy), and (iii) type of organizational ambidexterity (structural vs. contextual) underlying the process; (b) develops, through seven case studies of lean roll-outs in MNCs’ plants, three testable propositions about what might enhance the lean roll-out process performance, arguing about the individual and combined effect of the three above mentioned dimensions on lean roll-out effectiveness and efficiency. We posit that an approach characterized by principles-based knowledge replication, larger decentralization, and prevalence of contextual ambidexterity positively impacts on roll-out process performance.

Many corporations have annual expenditures in research and development in the range of billions of U.S. dollars. Senior managers have often been frustrated by the lack of innovation in their organizations and have been looking for better ways to implement an innovation strategy. To provide initial evidence on this significant topic, we conduct an empirical examination and contribute to the existing literature in two important areas. First, we examine how managers choose what measures to pay attention to in managing the innovation process – defined as the process of creative definition, development, and commercialization of substantially new products, services or businesses. We find that managers use measures about specific phases of the innovation process together. For example, measures that inform about the execution stage of the innovation process are grouped together rather than being grouped with measures informative about other phases of the innovation process, such as market performance. This pattern “focused” around specific phases is in contrast to the alternative “balanced” pattern where managers would use measures from various phases of the process together. This result provides the first empirical test of how managers combine measures to filter information about business processes. It also provides important new evidence on the use of measures and provides guidance to the design of measurement systems. Second, this paper provides empirical evidence on the relationship between innovation strategy and the use of measures. Though previous studies have linked innovation strategy and the use of management control systems in general, there is little empirical data on the relationship of strategy and the use of measures and on the innovation process. We find that different dimensions of strategy are positively associated with how managers use different types of measures.

Computer-mediated knowledge transfer has been at the forefront of consultancy research. The underlying idea is that individual knowledge can be externalized into disembodied symbols and codes, which can then be disseminated and accessed electronically within and across organizations. Although the process of externalization and transfer of knowledge has been investigated from various theoretical perspectives (positivism, social constructionism, pluralism), little research has addressed the role of cognition in computer-mediated knowledge transfer. Based on a case study within an international technical consulting firm, we argue that the success or failure of computer-mediated knowledge transfer is influenced to a large degree by embodied mental frames, social networks, and individuals’ creative and explanatory use of artifacts in real-world situations.

One of the emerging roles of management accountants in organizations is the design and operation of their organization's knowledge management system (KMS) that ensures the strategic utilization and management of its knowledge resources. Knowledge-based organizations face identifiable general risks but those whose primary product is knowledge, knowledge-products organizations (KPOs), additionally face unique risks. The management accountants’ role in the management of knowledge is even more critical in such organizations. We review the literature and survey a small convenient sample of knowledge-products organizations to identify the general risks knowledge-based organizations face and the additional risks unique to KPOs. The general risks of managing knowledge include inappropriate corporate information policies, employee turnover, and lack of data transferability. Additional risks unique to KPOs include the short life span (shelf-life) of knowledge products, the challenging nature of knowledge experts, and the vulnerability of intellectual property. The paper includes recommendations for management accountants in KPOs to develop and maintain competitive advantage through their KMS. These include developing enterprise-wide knowledge policies, fostering collaboration and documentation, addressing knowledge security, and evaluating the effectiveness of the KMS.

Mergers have increased at a fast rate in the last 10 years. Nevertheless, practitioners and consultants point out the low rate of success for mergers. Considering this paradoxical situation, it would appear opportune to question the possibility of developing a specific competence within an organization for carrying out mergers and acquisitions. This research aims to propose a model for analyzing the development of such a competence. This paper presents a study of competence-building according to two aspects: level of recognition by the organization and level of use. The study model defines four forms that competence may take: ad hoc responses, capitalization, institutionalization, and dynamic competence. This model is used for the study of the development by the Lafarge Group of a competence in managing cultural integration after international mergers and acquisitions.

Project ventures are an increasingly prevalent organizational form in many industries. The management literature has stressed their flexibility and adaptability advantages. This chapter focuses on the learning implications of the source of flexibility most essential to project ventures: the ability to switch partners during project formation and execution. This partnering flexibility creates opportunities to respond to new knowledge about characteristics of project tasks and project partners. Partnering flexibility, however, also creates learning challenges. The short-term nature of relationships between project partners and the disintegration of the project team after project completion challenges the accumulation and transfer of knowledge to future projects. Beyond the introduction of related learning opportunities and challenges, we identify potential contingency factors in the project context that shape when partner flexibility will have beneficial versus harmful effects. On the organizational level, we propose that project-governing permanent organizations can support project-venture learning. On the industry level, we highlight potential learning benefits of standardized partner roles and coordination practices. Thus, our chapter introduces a multilevel contingency framework for the evaluation of both learning opportunities and challenges of partnering flexibility in project-venture settings. We formulate testable propositions focused on partner-project fit and project performance.

This chapter is about the production, diffusion and use of knowledge seen in an economic perspective. Fundamental distinctions between tacit and explicit knowledge and between know-how, know-why, know-what and know-who are related to distinctions between public/private and local/global knowledge. It is argued that the idea of the economy as being knowledge based is misleading and that we have moved into a learning economy where interactive learning is a key to economic performance of firms, regions and nations. This is one reason why a narrow economic perspective is insufficient. When it comes to understand industrial dynamics in the learning economy it is necessary to bring in other disciplines than economics in the analysis.