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Strategies for Effective Knowledge Management in Multinational Corporations

This overview explores knowledge management (KM) strategies relevant for multinational corporations, addressing key questions and issues. It distinguishes between codification and tacitness strategies, highlighting their respective advantages and disadvantages. The document outlines how to effectively manage knowledge, particularly in software companies, by analyzing focused and unfocused KM strategies. Real-life examples are included to enrich the discussion on how various approaches impact organizational performance. Key insights aim to support businesses in formulating effective KM guidelines for enhanced operational efficiency.

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Strategies for Effective Knowledge Management in Multinational Corporations

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

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

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

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

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

  6. 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

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

  8. 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)

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

  10. 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.

  11. Focused and unfocused KM strategies

  12. Outline • Why multinational corporations • Advantages / disadvantages • Issues regardingknowledge management • Knowledge management strategies • For eachstrategy: • Advantages / disadvantages • Real-lifeexamples • Formulating a strategyguideline • Conclusion

  13. Issues & questions • What type of strategy would be best for a software company? • In which situation is an unfocused knowledge management strategy preferred over a focused one?

  14. Discussion

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

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

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