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September 2004, Volume 35, Number 5, Pages 371-384

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Article

A formal analysis of knowledge combination in multinational enterprises

Peter J Buckley1 and Martin J Carter2

1Centre for International Business University of Leeds, Leeds University Business School, UK

2Leeds University Business School, UK

Correspondence to: PJ Buckley, Centre for International Business, University of Leeds (CIBUL), Leeds University Business School, University of Leeds, Leeds LS2 9JT, UK. Tel: +44 113 343 4646; Fax: +44 113 343 4465; E-mail: pjb@lubs.leeds.ac.uk

Abstract

This paper outlines a model of process organisation for the combination of different types of knowledge from spatially separated sources in the multinational enterprise. The model envisages an initiator-entrepreneur as the motor of the process, and identifies regularities in the types of knowledge combination within the firm that provide additional value. Knowledge losses, decision losses and coordination losses are imperfections in the process, and result in barriers to the effective combination of knowledge. Strategies of combination are of three types - additive, sequential and complex - implying different types of control outcomes.

Journal of International Business Studies (2004) 35, 371-384. doi:10.1057/palgrave.jibs.8400095
Published online 22 July 2004

Keywords

knowledge management; multinational enterprises; process model

Received: 4 February 2003; revised: 19 November 2003; accepted: 17 February 2004


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