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Globally distributed knowledge

This overview examines the complexities of knowledge management (KM) strategies within multinational corporations (MNCs). It presents the advantages and disadvantages of codification and tacitness strategies, discussing how effective knowledge management can enhance performance and innovation. The document further highlights real-life examples and formulates strategic guidelines tailored for MNCs, addressing issues and questions pertinent to managing knowledge across diverse global markets. It emphasizes the balance between structured (focused) and organic (unfocused) approaches for optimal organizational knowledge flow.

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Globally distributed knowledge

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  1. Globally distributed knowledge Frans van den Heuvel Niek Den Teuling Esther Verhoef

  2. Overview • Problem statement • Multinational corporation • Knowledge management strategies • Outline • Issues & questions • Discussion 1 • Discussion 2

  3. Problem statement • What type of knowledge management strategy is best used for a multinational company?

  4. Multinational corporation • Advantages • Sell far more than other types of companies • Avoid transport costs • Take advantage of different wage levels in different countries • Economies of scale • Less chance of going bankrupt • More research and development

  5. Multinational corporation • Disadvantages • Trade restrictions at government-level • Import taxes • Import quota • Managing a large, global organization • Managing knowledge

  6. Knowledge management strategies • How to manage knowledge? • Codification strategy • Tacitness strategy • Focused and unfocused knowledge management strategies

  7. Codification strategy • Intranets • Shared databases • Expert systems • E-mail

  8. Codification strategy • Advantages • Facilitation of flows • Fast and reliable access • Tend to be more efficient and appropriate than earlier forms of codification • Better able to quickly identify and exploit new business opportunities

  9. Codified strategy • Disadvantages • Information overload • Large directories, unread e-mail, junk mail • Costs may be too high (when underlying knowledge becomes old, system maintenance)

  10. Tacitness strategy • Advantages • Keeping knowledge in a ‘fluid state’ • Creativity and original forms of response and coordination • Not easy for competitors to imitate (unlike codified knowledge)

  11. Tacitness strategy • Disadvantages • Problem when key personnel leaves(solution: Cross-specification and team building) • Immobility of organizational knowledge

  12. Focused and unfocused KM strategies • Focused KM • Specializes on specific forms of codification for each type of knowledge. • Unfocused KM • The way knowledge is codified is not the result of a deliberate decision, but a by-product of other decisions.

  13. Focused and unfocused KM strategies

  14. Outline • Why multinational corporations • Advantages / disadvantages • Issues regarding knowledge management • Knowledge management strategies • For each strategy: • Advantages / disadvantages • Real-life examples • Formulating a strategy guideline • Conclusion

  15. Issues & questions

  16. Discussion 1 • Subunits with high levels of codification of knowledge experience stronger performance than subunits with low level of codification

  17. Discussion 2 • Subunits with high levels of tacitness of knowledge experience stronger performance than subunits with low levels of tacitness

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