Knowledge management and involvement in innovations in MNC subsidiaries

Abstract

■ 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 acco..