Agile Going Global – Can You Manage The Kowledge? Agile Methodologies Influence On MNCs’ Knowledge Management

Abstract

Previous research has emphasized the role of multinational corporations’ (MNCs’) knowledge management as a way to trigger the dynamic capabilities. As a means to respond to change, agile methodologies allowing for flexibility have been widely adopted among software firms. Since the intersection of MNCs’ knowledge management and agile methodologies has received little attention in the literature, this study addresses this deficiency by investigating how agile methodologies influence the knowledge management of an MNC. This is done through a single case study of an MNC located in Sweden, China and the United States. The findings reveal that agile methodologies building on social capital and tacit knowledge, combined with the globally dispersed nature of MNCs that comes with cultural-cognitive pressures and difficulties in interacting face-to-face, increase the challenges on the MNCs’ knowledge management. The combination of fields increases the need for structure and a strong organizational culture in order for the knowledge management to be efficient. By renewing social settings, creating mutual dependencies and building trust, organizational learning is improved, and the dynamic capabilities triggered. Lastly, the authors suggest some practical solutions of how to manage knowledge within an agile MNC, providing a valuable contribution as the intersection of the two fields are likely to become further interconnected in the future.