Strategy's effect on knowledge sharing in host country networks

This study investigates how knowledge strategy affects multinational firms' knowledge sharing in host country networks. Network interactions are a source of learning and knowledge acquisition for firms to fill their knowledge gaps. The research presents a quantitative study of organizational-level learning with structural equation modeling on Asian and European telecommunications multinational firms operating in Pakistan. The results suggest that a clearly outlined knowledge strategy positively affects firm's knowledge sharing in host country networks. The acquired knowledge leads to effective market intelligence and improvement in firm's process innovation and consequently in its performance. The knowledge sharing positively affects research and development integration of past projects; however, research and development integration of past projects has no significant effects on firm performance. The implication for managers is to accept failures and remove barriers to knowledge sharing that prevent employees from using their expertise, and to encourage and engage them in solution finding.