This study intends to figure out some factors that may influence the knowledge creation of overseas subsidiaries. On the basis of local data collected from CEO of 143 overseas subsidiaries of Korean firms operating in 37 countries, we employed multiple regression analysis to test hypotheses. We found that the higher level of organizational decentralization(1), local embeddedness(2), efficiency of communication channel with fellow subsidiaries(3) has positive effect on knowledge creation of overseas subsidiaries. But the moderating effect of headquarters’s control between each factor and knowledge creation was not found.