Harnessing tacit knowledge for innovation creation in multinational enterprises: an internal social network approach

Abstract

This paper presents a propositional framework for an updated understanding of the relationship between the internal social networks of a multinational enterprise (MNE), harnessing of tacit knowledge within these networks, the role that culture plays in tacit knowledge exchange, and the ultimate creation of innovation. Thus, we examine theories of tacit knowledge creation and exchange, social networking theory, cultural influences and propose an integrated understanding of MNE innovation creation through internal social networks. The contribution of this paper is in the formulation of propositions that encapsulate the functional relationships between internal social networks, tacit knowledge, cultural considerations and innovation creation in MNEs. Managerial and research implications are then drawn.