Micro-Foundational Dimensions of Firm Internationalisation as Determinants of Knowledge Management Strategy: A Case for Global Strategic Partnerships

Innovation is a critical source of competitive advantage in an increasingly changing and globalising environment and, thus, knowledge management lies at the core of a firm’s global business strategy. This paper investigates the relationship between micro-foundational dimensions of firm internationalisation and its knowledge management strategy in the emerging economies, which have been found more efficient in converting technology into socio-economic impact. We specifically look at the technology acquisition modes which are operationalised into three categories: internal development, global strategic partnership, and outsourcing. Results from the analysis of World Bank data collected from manufacturing firms operating in emerging economies show that specific micro-foundational dimensions such as the share of foreign employees, level of foreign input and foreign sales have a significant impact on the choice of technology acquisition mode by a firm; whereas the level of foreign ownership does not have such an effect.