Knowledge and Strategy Creation in Multinational Companies

Patrick Regnér () and Udo Zander
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Patrick Regnér: Stockholm School of Economics
Udo Zander: Ragnar Söderberg Professor of Business Administration, Stockholm School of Economics

Management International Review, 2011, vol. 51, issue 6, No 5, 850 pages

Abstract: Abstract While a great deal of research on international business and management has fruitfully focused on knowledge transfer, this paper investigates knowledge creation; the process by which multinational companies (MNCs) continuously combine and recombine knowledge in order to generate a competitive advantage. By integrating contemporary strategic management research into the field of international business, we have developed a new perspective on strategy and knowledge creation in MNCs, by elaborating on and extending the knowledge-based view and other views of MNC strategy making. We suggest that the agglomeration of a multitude of diverse social-identity frames, nested inside a corporate centripetal frame, creates an arena in which exploitable new knowledge can be created. We propose that while a common corporate social-identity frame promotes knowledge transfer, the diversity of various subgroups’ social-identity frames, in combination, with interaction and temporary tension between them, advances knowledge creation. Although this partly involves a serendipitous process, it promotes a systemic advantage for MNCs compared to local firms, as regards knowledge exploration, (re-)combination, and integration. This competitive advantage is firmly rooted in hard-to-imitate complex social processes and may therefore be sustainable.

Keywords: Multinational companies; Strategy; Knowledge creation; Social identity frames (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (20)

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DOI: 10.1007/s11575-011-0110-3

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