The relationship of knowledge management and innovation in a multinational context

[German title: Der Zusammenhang zwischen Wissensmanagement und Innovation im multinationalen Kontext]

Knowledge management and involvement in innovations in MNC subsidiaries  281-302
Stewart Johnston und Angela Paladino
Management International Review, Volume 47, Number 2 / März 2007

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. 

Key Words:  Edith Penrose – Knowledge Management – MNCs – Australian Subsidiaries – Innovation

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.

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© Gabler Verlag

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