Management Essay: Multi-National Corporation (MNC) Sourcing Knowledge to a Distant Country

Innovation and Sustainability
Author’s Name
The Institutional Affiliation
Course Number and Name
Instructor Name
Assignment Due Date
Innovation and Sustainability
Multi-National Corporation (MNC) Sourcing Knowledge to a Distant Country
It is beneficial for the Multi-National Corporation (MNC) to go to a distant country to source knowledge as it reduces their operational and computational costs. Also, with the sourcing of knowledge, innovative ideas and creativity are promoted in the organizational processes (Curran et al., 2017). Besides, the product development is more efficient, fast and reliable as the people who are working on the technology possess specialized skills. The knowledge outflows by a Multinational Corporation (MNC) contribute to adding value to the potential customers.
Moreover, the quality of services improves to a significant level as only the professionals and experts in their respective areas work on the project. The MNC’s can use open innovation as their primary strategy for establishing innovation hubs across different regions of the world for achieving sustainability in its business processes (Monteiro & Garcia, 2019). The company can meet customer demands as the organization can deploy more workforce in completing the tasks. With an efficient and professional team, the organization’s management can maintain the highest quality in its services (Hurtado-Torres et al., 2018). The knowledge transfer and technology transfer in the energy sector is directly related to or linked with the performance of the subsidiary organization. The overall efficiency of the subsidiary company improves with knowledge transfer.
Due to these benefits, MNCs sources knowledge and technology from distant regions even though cultural distance may harms MNC’s performance. With cultural distance, the transfer of knowledge to the subsidiary is moderate. The sourced knowledge can be beneficial for the MNC in achieving its target goals and objectives. All the factors need to be considered by the organization in taking the final decision.
For example, The Enel Group, which is also regarded as the top power utility organization globally, has adopted sustainability and innovation for expanding its business operations. The company’s senior leadership has been open to sharing their knowledge with other business models because they aim to make the environment free from carbon emissions (Monteiro & Garcia, 2019).). The experts of the organization are providing support to suppliers, researchers, universities and small and medium-sized enterprises for promoting open innovation in different regions. Sustainability and innovation are the major components involved in promoting the production of renewable energy.
Open Innovation in the Energy Sector
The open innovation in the energy sector contributes towards providing an environmentally friendly and cost-effective solution. The energy industry needs to go under massive transformation with the adaptation of open innovation for addressing the issues faced by the energy sector. The companies are facing issues in meeting the demands of the consumers as there is a dearth of available resources (Alam & Ansari, 2020). The adaptation ...