Which statement best describes the goal of knowledge management in MNEs?

The essence of knowledge management in multinational enterprises (MNEs) revolves around the effective use of knowledge to enhance decision-making capabilities across the organization. This approach recognizes that knowledge is a vital asset that can significantly influence the strategic and operational effectiveness of the company. By facilitating the sharing and application of knowledge, MNEs can leverage insights, best practices, and innovations from diverse regions and departments, ultimately leading to improved competitiveness and responsiveness to market changes.

The focus on decision-making is pivotal, as better-informed decisions can lead to increased efficiency, improved risk management, and enhanced strategic planning. Knowledge management systems aim to break down silos within the organization, fostering collaboration and cross-functional integration, which is essential for navigating the complexities of international business.

In contrast, maintaining knowledge solely within individual teams would hinder the collaborative environment necessary for innovation. Documenting all organizational processes, while beneficial for standardization, does not inherently improve decision-making capabilities. Limiting knowledge to product divisions would restrict the flow of information and insights that are crucial for holistic decision-making across the entire enterprise.