Micro-Foundational Dimensions Of Firm Internationalisation As Determinants Of Knowledge Management Strategy: A Case For Global Strategic Partnerships

Innovation is a critical source of competitive advantage in an increasingly changing and globalising environment, thus, knowledge management lies at the core of a firm's global business strategy. This paper investigates the relationship between micro-foundational dimensions of firm internationalisation and its knowledge management strategy in the emerging economies, which have been found more efficient in converting technology into socioeconomic impact. We specifically look at the technology acquisition modes which are operationalised into three categories: internal development, global strategic partnership, and outsourcing. Results from the analysis of World Bank data collected from manufacturing firms operating in emerging economies show that specific micro-foundational dimensions such as the share of foreign employees, level of foreign input and foreign sales have a significant impact on the choice of technology acquisition mode by a firm; whereas the level of foreign ownership does not have such an effect.