Unlocking Global Success: MNCs Harness Local Knowledge for Competitive Edge
Multinational corporations set up overseas branches to gain knowledge from local markets. By sharing this information with headquarters, they improve their competitive edge. The study shows that the ability of these branches to transfer local information back to the main company is influenced by their knowledge transfer capacity. The study found that the branches' knowledge transfer capacity is crucial in transmitting local market information to the main company. Additionally, the branches' capability to develop knowledge, willingness to share information, and autonomy all help in transferring new information effectively.