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The key to the success of multinational corporations’ (MNCs) business models is the improvement of their innovation quality. From the cross-border knowledge management perspective, this paper aims to analyze the improvement path of innovation quality of MNCs and construct the functional path of the relationships among the knowledge creation, knowledge application and innovation quality of MNCs in the cross-border knowledge management process, so as to achieve the success of their business models. Based on this, this paper introduces cultural distance to further analyze how such relationships will change with the cultural distance level.

Using data from Chinese A-share listed MNCs with production operations located in the Asia-Pacific region from 2014 to 2018, this paper constructs a panel data model to test the mediating effect of knowledge application and the moderating effect of cultural distance on such relationships.

This paper obtains the following research findings: knowledge creation and knowledge application each have a significant, inverted U-shaped relationship with innovation quality; knowledge creation has a significantly positive correlation with knowledge application and knowledge application has a partial mediating effect on the relationship between knowledge creation and innovation quality; cultural distance has a moderating effect on such relationships. The specific moderating direction depends on the extent of the knowledge creation and knowledge application.

The findings are helpful to MNCs’ managers, providing guidance and serve as a reference for them to make strategic decisions on cross-board knowledge management and business models innovation.

The theoretical contributions are summarized as follows: First, it further enriches and expands the theoretical of knowledge management and innovation quality relationship. Second, it further enriches and expands the theoretical framework of knowledge management. Third, it further enriches the theoretical framework of cross-cultural management.

Frugal innovation is a term that has been used to describe the low-cost products and services, as well as the systems and processes adopted by organizations to develop them. The purpose of this paper is to examine the experience of multi-national companies (MNCs) in India as they adopt the philosophy of frugal innovation to develop products that are high in technology but low in terms of cost to meet the requirements of the market conditions in India, and similar low-income economies.

The case study methodology was adopted to understand the experiences of the Indian subsidiaries of two MNCs, Bosch India and 3M India. Data were acquired through interviews with key decision makers, documents, and publicly available information.

The two MNCs have increased research and development (R&D) in India and adopted the philosophy of frugal innovation which combines high technology with low costs. Based on the analysis, some propositions are presented indicating that MNCs will shift R&D to India if there are market opportunities; they will adopt the philosophy of frugal innovation to produce high technology products that are lost cost and low cost over product lifetime and will also expand to new-to-the-world innovation and finally contribute to global innovation.

The study is based on only two case studies and a large sample study may be required before the findings can be generalized.

Other MNCs can learn from Bosch India and 3M India in terms of adopting frugal innovation practices to be successful in low-income economies.

The field of frugal innovation is quite new and largely based on anecdotal accounts of successful low-cost innovation. This paper provides a more detailed account of the experiences of two well-known organizations to present propositions that may be used to conduct a large sample study.

The purpose of this paper is twofold: to study the relationship between reverse knowledge transfer (RKT) and headquarters’ innovation, examining potential moderators of such relationship, and to analyze the role of headquarters’ absorptive capacity (AC) and the coordination mechanisms they adopt as antecedents of RKT.

Quantitative data were collected from 104 Spanish multinational companies. Structural equation modeling was used to test hypotheses.

Findings provide the evidence of a positive relationship between RKT and headquarters’ innovation. This relationship is higher when the knowledge transferred from subsidiaries to parent units is of a more tacit nature, and also when the organizational distance between them is larger. The results also show that the parent unit’s AC and the use of mechanisms for coordinating company units can facilitate RKT.

MNCs that wish to be more innovative should be aware that it is worth the effort of fostering RKT, especially when knowledge is more tacit and comes from subsidiaries with different organizational practices and culture because these two variables increase the positive relationship that it was found between effective RKT and the development of innovation in the headquarters. Additionally, results show that in order to facilitate RKT, the improvement of headquarters’ AC and the use of mechanisms of coordination between them and its subsidiaries can be useful.

Up to the authors’ knowledge, this is the first empirical study that examines the link between RKT and headquarters innovation, and one of the few that focuses on headquarters characteristics as determinants of RKT. Thus, the findings contribute to the literature that highlights the benefits of RKT for MNC’s competitiveness, and that seeks to know how to promote RKT.

This paper aims to assess the importance of different knowledge management practices to promote organizational innovation in multinational companies. The links among internationalization, reverse knowledge transfer and social capital and organizational innovation are analyzed.

Structural equation modeling was used to check the research hypotheses with a sample of 104 multinational companies.

The results show that internalization has no direct effect on organizational innovation but a indirect effect trhrough the transfer of knowledge from external subsidiaries to the headquarter. Furthermore, this knowledge and other that comes from internal and external social capital is essential for the development of innovations.

Self-reporting by the CEOs may be the most significant limitation, as a single key informant provided the data; multiple informants would enhance the validity of the research findings. A second limitation is the cross-sectional design of the research that does not allow observation of the short- and long-term impact of the relationships among the variables.

Organizational innovation is not an easy task. However, those multinational companies which foster knowledge management practices that generate new knowledge from external subsidiaries, internal or external social relationships, will facilitate the generation of innovations. In consequence, these companies should foster the generation of knowledge from different sources.

The focus of the study in this paper is on multinational companies and the possibility to acquire knowledge from different sources (inside organization, external local environment and international context). Specially, focus on the transfer of knowledge from subsidiaries to headquarters (reverse knowledge transfer), as it is insufficiently investigated by current literature.

The purpose of this paper is to explore the relationship between effective knowledge management and corporate performance, to explore the dynamic symbiosis phenomenon of effective knowledge management based on organizational ecology with multinational companies (MNCs) and non-multinational companies (non-MNCs) and to explore the symbiosis strategy of knowledge management between multinational and non-multinational companies (non-MNCs) in China.

To measure effective knowledge management, this paper first uses structural equation model to measure knowledge management, based on the evolution dynamics equation in organizational ecology to measure the effectiveness of knowledge management, and studies the symbiosis of effective knowledge management between MNCs and non-MNCs based on ecological perspective.

Effective knowledge management can promote the financial performance of enterprises, but different degrees of effectiveness have different effects. In addition, the coupling and collaboration between knowledge management and corporate performance can reflect the value of effective knowledge management. The results show that effective knowledge management plays a positive moderating effect between knowledge management and corporate performance. Finally, the effective knowledge management system of MNCs (non-MNCs) has negative effect on non-MNCs (MNCs), showing the exclusive relationship between MNCs and non-MNCs in China.

The effectiveness of knowledge management is only based on the measurement of financial performance coupling. For other types of performance, it needs to be tested. The samples may not cover symbiosis relationship of effective knowledge management in other countries.

This paper provides practical and theoretical reference for confirming the symbiotic interaction and identifying the opportunities and challenges of knowledge management among different types of corporation groups.

The paper is one of the pioneering studies to explore the pattern of symbiotic evolution of effective knowledge management between MNCs and non-MNCs. From completely new perspectives, this study advances the research of knowledge management to a new and promising area.

The purpose of this study is to explore the competitive source of Chinese firms in an industrial sector of complex product systems. It helps to reveal the organizational innovation developed by Chinese firms in coping with international competition and technological challenges.

The study uses a qualitative method of research. The evidences are mainly collected through interviews, field observation and document analysis.

A pattern of engineer-centered organization is the source of competitiveness of Nanrui (NR) Electric (NREC) in this study. The firm equips its front project teams, and now its overseas branches with developmental human resources and authorizes them the power of decision-making to leverage R&D projects. It is an emerging challenge to the traditional multi-national companies (MNC) pattern, and enables the Chinese firms to build their capabilities on context-based knowledge.

As a single-case study paper, there are limitations about the external validity of its argument. Through the in-depth discussion of the NREC case, this paper aims to generate some clues for future study in the relevant academic community, which can be a useful step to formal theorizing and modeling. That is why the authors develop the paper on a single case. As future directions of research, comparative studies covering more cases not only within the power system control and protection industry but also among different complex technology products industrial sectors are really needed.

For innovative firms from developing countries like China, they need to develop institutional arrangements to incentivize engineers in the frontline, which may help them to build competence upon successful interaction with customers. During the era of globalization, such a pattern may generate special competitiveness over giant multi-nationals or global production networks (GPNs).

The research provides an instructive case on the Chinese rise in industrial sectors of complex product systems. Its findings can not only provide enlightenment for industrial catch-up in developing countries through organizational innovation but also help to initiate a reconsideration of the traditional theorizing of MNC and GPN.

This article examines the strategic actions of multinational corporations (MNCs) in creating social value at the base of the pyramid (BoP), providing insights into novel business models (BMs) and tactics employed for poverty alleviation.

This conceptual article links three relevant pieces of literature – creating shared value (CSV), the three-value creation logic and the three core values of social development – to analyze the current research and real-world examples of MNCs implementing the BoP BMs.

The article identifies four strategies and 11 tactics used by MNCs to adapt BMs elements (value proposition, value constellation and value capture) and generate social value at the different levels (coverture of basic needs, self-esteem and freedom from servitude) by following the distinct value creation logics (chain, shop and network).

This article provides a conceptual framework that links relevant literature and sheds light on the strategic actions that MNCs apply in their BMs to tackle the multidimensionality of poverty in the BoP markets.

This paper aims to propose practical recommendations in accordance with the strategic roles played by research and development (R&D) in multinational companies (MNCs).

This study applies a qualitative method to investigate the talent management (TM) practices implemented in MNCs’ R&D units.

The findings identify four R&D strategies and four sectors of TM practices. Furthermore, there exists an alignment between R&D strategies and TM practices.

This paper has several limitations. This qualitative research is exploratory, and larger samples or quantitative methods are needed to ensure the wider applicability of the findings. When possible, longitudinal studies yield superior results in revealing the evolving strategic roles of R&D subsidiaries and their TM practices. The authors used China as the research context, and similar studies in other emerging countries with active R&D activities are required to further validate or complement the findings in this study.

This study has some practical implications for companies with regard to aligning their TM practices with R&D strategies.

R&D units play an increasingly significant role in MNCs and TM is a key issue. However, there is a lack of TM research focusing on R&D employees by taking strategies into account.

The purpose of this study is to explore the effects of two independent variables, creative climate and learning organization, on innovation separately and simultaneously.

The methodology used was multiple regression analysis executed on the data collected. Apart from that, the study also used T‐tests to compare the means of variables between the randomly selected local organization and MNCs. ANOVA was also conducted to compare the means of the variables between three different employee categories of job levels, namely the top, middle/lower management and supporting staff.

The results indicated that both learning culture and creative climate contributed 58.5 percent to the explanation of the observed variances in the innovation construct. The learning organization culture separately was found to have a significantly stronger relationship with innovation (r=0.733) than did the organizational creative climate (r=0.473). This implied a larger contribution from the learning organization variable towards innovation. The findings also showed that there were no significant differences in the mean scores (P>0.05) among the three organizational job levels included, namely the top management, middle/lower management and staff, in the members' perceptions of innovation, creative climate and learning culture. The study also found no significant differences in the mean scores (P>0.05) among the small, medium, large and very large organizational population sizes in the members' perceptions on innovation, creative climate and learning culture.

The study involved a sample of 18 private organizations selected at random from a list of 165 organizations across various core businesses. The instrument used for innovation is developed by the researcher, validated by post hoc factor analysis involving 259 respondents.

Entrepreneurial learning has recently become a topic of significant interest, with academics and economists alike recognising that the success of any new business venture is closely linked to the learning and knowledge of the entrepreneur. To date, research into entrepreneurial learning and the specific ways in which entrepreneurs learn is severally limited. By way of extending research in this area, this study examines the role of multinational companies (MNCs) as an important source of learning for entrepreneurs, and as a catalyst for new business creation and growth. Based on a small‐scale qualitative study of a group of indigenous entrepreneurs in the information technology sector in Ireland, this paper presents evidence consistent with the argument that multinational enterprises provide an important source of learning for mall to medium‐sized enterprise entrepreneurs. The evidence suggests that MNCs have a positive impact at the firm level, both at the formation and growth stage of development.