**Abstract**

The aim of this chapter is to identify those individual skills and organizational factors (OF) that facilitate knowledge generation in firms operating in Mexico. The innovative capacity of organizations depends on how successful they are in the generation of knowledge and how organizational culture, management support, motivation, and personal skills support this process. To validate this phenomenon, a quantitative explanatory study was designed. Data collection was carried out through a questionnaire applied to 211 collaborators who work for firms located in Mexico. Concerning external knowledge acquisition (EKA), for Mexican and foreign firms, only individual skills such as professional qualification, personal motivation, and opportunity to learn are significant compared to internal knowledge creation (IKC) in which organizational factors such as organizational culture, management style, and commitment to learn are predominant. In addition, for knowledge creation in Mexican firms, individual skills are relevant but not for foreign ones. This result could assume that foreign firms in Mexico create their own knowledge based on headquarters' institutionalized processes.

**Keywords:** knowledge generation, external knowledge acquisition, internal knowledge creation, innovativeness, organizational factors, human capital skills
