The Role of Information Technology in the Advancement of Multinational Corporations’ Intellectual Capital

Abstract

The article provides a systematic multidisciplinary framework that defines the role of Information Communication Technology (ICT) in leveraging Intellectual Capital (IC) across borders and between headquarters and subsidiaries of Multinational Companies (MNCs). In reaching this goal, this article investigates the strategic importance and value of ICT in the management of IC within MNC ecosystem. More importantly, the paper addresses the transubstantiation of MNC into boundaryless Global Knowledge-Based Organization (GKB-MNC) which ultimately propagates into Learning MNC (LMNC). The latter is a proposed MNC type that sustains competitive advantage through systemic adoption of “Knowledge Iterative Supply Network (KISN)” model proposed by the author. Furthermore, the article suggests a new multinational ICT/IC governance strategy that handles the emerging complexities associated with the modern intangible assets reuse, synthesis and synergy. In effect, these complexities originate from the introduction of functionalities such as just-in-time knowledge supply, elicitation of tacit knowledge, and leveraging of the core competencies for the creation and maintenance of geographically distributed value proposition.