As we know Knowledge Management System (KMS) are now becoming part of agenda leading firms. Found that KMS has four distinctive types which are Capability-based – and their characteristics, Content-based, Fragmented and Process-based. These characteristics include both the training and reward systems in place, structure, the staffing and dimension and flow of the knowledge itself to support the KMS. Key external influences include the degree of environmental change and pressures to follow industry norms in technology investment.Multinational corporations’ (MNCs) effective performance depends increasingly on their ability to create new knowledge and also utilize existing knowledge. This has motivated the need for a systematic understanding of how knowledge is been organized inside MNCs. While research pertaining to the dimensions of knowledge is less is known about the impact of mechanisms used by ?rms for accumulating, abundant, creating and sharing. This puts a premium on studies of effective knowledge management (KM) in MNCs. Past a few years ago, many organizations already have developed information technology-based systems designed speci?cally to facilitate the sharing, integration, and utilization of knowledge, referred to as Knowledge Management Systems (KMSs). These systems are often associated with increased organizational ?exibility, quicker responses to changing conditions, greater innovation and improved decision-making But the challenges involved in successfully transferring knowledge across MNC units create an important design problem for MNC top management. Evidence suggests that while many leading MNCs deploy different types of KMS in the pursuit of competitive advantage, in many cases they ?nd it dif?cult to reap the full bene?ts from those systems due to a poor alignment between the way the company is internally structured and organized and the way the external environment functions. As environmental conditions change, MNCs respond by adapting their strategic behaviors to the emerging situation. This typically involves changes to the con?guration of organizational strategy, structure, and process. KMSs are deeply rooted in the strategy-structure-process of organizations and, therefore, if MNCs shift between different types of KMSs, this is usually due either to internal organizational factors or to changes in the company’s external environment or both. Senior managers play a critical role in the successful implementation of and transition between KMS types because they are in a position to in?uence organizational strategies, structures, and processes.