Management innovation and the multinational corporation

This paper relates management innovation to multinational corporations (MNCs). We argue that MNCs play two key roles in implementing management innovations. First, they can engage in management innovating by inventing and implementing new management practices. We show that while MNCs have been involved in management innovating, few of their management innovations are specifically international in nature. Second, they can be involved in the diffusion of management innovations, including the transfer of new management practices to other countries. There is more evidence for this role. We propose that international business research should attempt to incorporate management innovation into its body of research themes.