Knowledge Management: Standardization vs. Adaptation in MNCs

Abstract: It is necessary for multinational corporations (MNCs) to manage their knowledge flows effectively in order to gain or maintain competitive advantage. The knowledge management (KM) process needs to be cost effective, which can be achieved through a standardized “one-size fits all” strategy. Some scholars argue that a standardized KM strategy is not possible in international KM, since countries are different and cultural differences makes it necessary to adapt the KM strategy with regard to different cultures. It becomes a question about standardization versus adaptation of KM. This study aims on describing the factors affecting international KM and thereby whether it is appropriate to standardize or adapt international KM. The empirical findings in this study derive from qualitative interviews with internationally experienced managers at three MNCs with subsidiaries spread over the world. By studying different factors that affect KM, it is shown that the MNCs mainly benefit from standardized KM strategies.