Knowledge Management and Performance: An Empirical Study of Top Multinationals from Emerging Markets

Abstract:

This study examines knowledge management trend of top Fortune Global multinational enterprises from emerging markets and it’s relation to business performance. Drawing on the resource-based and knowledge-based strategic management theories, it is argued that firms that best manage their intangible resources such as knowledge are more likely to have a competitive advantage. Data of top thirty Fortune Global multinational enterprises from emerging markets show a trend toward spending more on research and development, registering more new patents, and better usage of assets from 2002 to 2007. A positive correlation was identified between changes in new patent registration and return on assets. Implication for managers is that they can achieve better business performance through efficient and effective management of assets, intangible assets in particular, and investment in research and development.