THE STRATEGIC IMPORTANCE OF KNOWLEDGE MANAGEMENT FOR MULTINATIONAL CORPORATIONS

Abstract

In today’s globalized economy, knowledge management (KM) has emerged as a strategic asset for multinational corporations (MNCs), enabling them to achieve competitive advantage through innovation, efficiency, and organizational learning. Given the complexities of operating across diverse geographical, cultural, and regulatory environments, MNCs require robust mechanisms to capture, store, share, and apply knowledge effectively. This paper explores the strategic importance of KM for MNCs by examining its role in decision-making, innovation capacity, and operational efficiency. It argues that effective KM fosters collaboration across borders, reduces duplication of effort, enhances adaptability to dynamic environments, and supports long-term competitiveness. Using theoretical insights and comparative case illustrations, the study demonstrates how KM systems allow MNCs to leverage global talent, manage tacit and explicit knowledge, and mitigate knowledge loss from employee turnover. The findings underscore that KM is not merely a support function but a core strategic tool that aligns organizational knowledge assets with corporate objectives. The study concludes with recommendations for embedding KM into corporate strategy, emphasizing the use of digital platforms, cross-cultural collaboration, and leadership support for fostering a knowledge-driven culture..