ABSTRACT: The aim of every organization is to achieve its set goals and objectives as well as secure competitive advantage over its competitors. However, these cannot be achieved or actualized if staff or workers act independently and do not share ideas. Today and prominent businesses are becoming more aware that the knowledge of their employees is one of their primary assets. Sometimes organizational decisions cannot be effectively made with information alone; there is need for knowledge application. Value of Knowledge for an organization is described in detail. An effective Knowledge Management System can give a company the competitive edge it needs to be successful, and, for that reason, knowledge Management projects should be high priority. This means that for any organization to be competitive in today’s global world there is need for combination or pooling together of ideas by employees in order to achieve teamwork; this is in support of the saying that ‘two good heads are better than one’. In this paper authors have tried to cover different aspects of Knowledge Knowledge Management Systems (KMS) and its role in Multinational Corporations. The relevance of KMS for organizations finds mention in this paper. Key concepts like Knowledge Creation and Knowledge Sharing are also described. This paper has tried to explain the process of knowledge creation with the help of case examples.