The knowledge based view and global strategy: Past impact and future potential

Research Summary The centrality of knowledge to the global arena has allowed scholars in this area to play a leading role in developing the knowledge-based view (KBV) of the firm. We propose that broadening the KBV to take account of the social constructionist approach to knowledge and the multilevel nature of knowledge processes, can build a more serviceable knowledge-based theory of global strategy. Specifically, we urge research in three directions, the exploration of a KBV of economic organization in a global context, which would encompass macro institutions as well as individuals; focus on the foundational construct of knowledge that would integrate human and machine learning in the global arena; and the creation of a comprehensive framework of knowledge types and knowledge processes across space. Managerial Summary Lack of consensus over the nature of knowledge has prevented the KBV from developing into an integrated, stand-alone theory of the MNE, but has not constrained its ability to provide penetrating insights into global strategy and the management of the MNE. Empirical research shows that the processes through which knowledge is generated and applied in the global arena are complex and contextually differentiated. To extend and synthesize our understanding of these complex processes, we propose the development of a knowledge based theory of global strategy. We advocate extending the KBV in three areas, first, consideration of a KBV of organization in a global context that extends beyond the MNE to consider institutions and individuals, second, a focus on knowledge as a key construct to incorporate recent technological advances in artificial intelligence and machine learning, and third, development of a framework of types and processes of knowledge that have implications for management across locations.