A state-market interplay framework for strategic knowledge management in Chinese MNEs

Abstract

The internationalization of Chinese multinational enterprises (MNEs) has triggered a rapid rise in research on their knowledge management practices. However, this literature lacks a coherent theory to explain variation in Chinese MNEs’ knowledge management strategies in and over time. In particular, we still lack an understanding of how firms navigate the unique tension between a home-country state-as-strategist and the market-led logic of global competition. To address this theoretical gap, this paper draws on a systematic review of 150 articles to develop a state-market interplay framework for the strategic knowledge management of Chinese MNEs. Our framework explains how the relationship between state-led and market-led logics generates three distinct strategic modes, each with a corresponding dominant knowledge management strategy: (1) Subordinated Interplay emphasizing knowledge acquisition; (2) Conflicting Interplay focused on knowledge transfer; and (3) Integrated Interplay concentrating on global knowledge creation. We also identify firm-level capabilities and external and internal catalysts that influence transitions between modes. The study contributes to International Business theory and the knowledge-based view by offering a typology of state–market interplay in state-capitalist economies and by explaining the institutional contingencies of firms’ knowledge strategies. We conclude by outlining avenues for future research.