The impact of strategic knowledge management on MNCs and their subsidiaries’ performance

Abstract

The impact of strategic knowledge management on MNCs and their subsidiaries’ performance is significant. By understanding and managing the flow of knowledge between an organization and its subsidiaries, MNCs can optimize performance and create a competitive advantage. In today's global economy, the ability to quickly access and share knowledge are critical to success. MNCs that have adopted a strategic approach to knowledge management is better able to identify and transfer best practices across their subsidiaries. This can lead to increased efficiency and effectiveness as well as improved decision-making. In addition, MNCs that proactively manage knowledge are better able to respond to changes in the external environment and adapt their strategies accordingly. While the benefits of strategic knowledge management are clear, implementation can be challenging. MNCs must carefully consider how to best share knowledge between subsidiaries without compromising confidentiality or competitive advantage. Additionally, cultural differences between subsidiaries can make knowledge transfer difficult. Despite these challenges, the benefits of strategic knowledge management make it a worthwhile endeavor for MNCs. By taking a proactive approach to managing knowledge, MNCs can improve performance, gain a competitive edge, and better respond to the ever-changing global economy. There are many benefits that can be gained from implementing KM within an MNC, such as improved performance of subsidiaries, increased competitiveness, and better decision-making. Additionally, KM can help to create a more cohesive and aligned organization, which is essential for an MNC that operates in multiple countries. The benefits of KM have been extensively studied and there is a wealth of evidence to support its impact on organizational performance. However, there is still much room for improvement in how KM is implemented within MNCs. In particular, more research is needed on how best to transfer knowledge between subsidiaries, as well as how to overcome cultural barriers to knowledge sharing. Overall, the evidence suggests that KM can have a positive impact on the performance of MNCs. With the right policies and procedures in place, KM can help MNCs to better compete in today’s global marketplaces