Supporting Innovation in SMEs and MNCs Alliances: A Case Study

Innovation has been recognized as strictly connected to knowledge abilities. Over the years several approaches and models have been developed in order to facilitate knowledge process but most of them recognize a high degree of personal commitment that involves mental models, personal beliefs, values and the process of reinventing oneself. Interestingly enough there seems to be a lack of literature on how to create it. Tools like data mining, brainstorming, problem solving approaches are well known, but how can we be sure that people will use them correctly? Ethical issues, cultural differences and misunderstanding could affect their effectiveness. Considering companies of different dimension like MNCs and SMEs, the differences become even bigger. Extrogen is an alliance between an Italian SME and a MNC, which name has been faked in order to keep it anonymous. A review of the management control system (MCS) has been conducted applying the Simons model which recognizes the role of MCS for creating boundaries, sharing core values, creating a communicative environment and measuring the results reached. This paper represents a case of study and aims to: 1. Analyze literature on KM barriers, especially comparing MNCs and SMEs and MCS literature; 2. Draw a model which combines the role of MCS as a Knowledge Management Tool; 3. Present a case study where MCS has been used for reducing KM barriers among MNCs and SMEs and supporting innovation.