Product Placement in the UK Assignment Example | Topics and Well Written Essays - 500 words

Product Placement in the UK - Assignment Example The move has been approved in recognition of the crisis that the industry is in because of declining ad revenues and to make sure that the British broadcasting networks are not rendered uncompetitive due to unnecessary restrictions. However the government has drawn the line on product exposure in children shows and the exposure of products such as alcohol, tobacco or those food products considered unhealthy.( Campbell Denis ‘TV product placement: Bradshaw bans nasties’) If we look at product placement through the marketing mix (4 P’s) perspective we can clearly see that this is a form of promotion, something that manufacturers might invest in as an alternative to advertising. If we analyze the efficacy of product placement using the tools of brand recognition and recall research indicates that brand recall and recognition was significantly improved with product placement activity. However research has generally been contradictory on whether it affects brand attitude change. These findings indicate that product placement could play a beneficial role on new product launches when achieving brand recognition is a key goal.( Kaijansinkko Riku ‘Product Placement in Integrated marketing communications strategy’) Another interesting analysis of product placement indicates that it maybe more effective then advertising because the consumers are not expecting this kind of stimuli when they are watching television or a film. This ‘Von Restorrf’ effect however maybe affected in the UK by the controversy that product placement has generated which will probably result in consumer’s expecting product placement.( Kaijansinkko Riku ‘Product Placement in Integrated marketing communications strategy’) This issue is now very pertinent for discussion after have being approved very recently on the 9th of February 2010. Although it was being discussed last year it was still far from being approved (which puts a totally different perspective on things)

Contemporary World Economy Essay Example | Topics and Well Written Essays - 750 words - 3

Contemporary World Economy - Essay Example In order to come up with the understanding of the economic changes that happen in the current world, there are different things that determine the way people will conduct their business according to their relations. Evaluation of the different perspectives of the economy makes the issues of economic differentiation very substantial. This will be an evaluation of the different economic systems in the world economy, with a perspective of the old economic relations. The themes that were discussed in class in the past term such like the economic markets liberalism, market systems, modernisms and development of economics, employment, globalization among other and are indicators of the transition that is happening in the world economy today. Some of these themes are reflective of the different economic systems in the world and focus on the difficulties that are predominant when a state or a nation adopt some of them and show the struggle that is in the world to ensure that people are set f ree from the unnecessary restriction. As a result, different scholars have written some materials in support or in criticism of some of these themes so that evaluation of the works of various scholars offers a great academic discourse that exposes the pros and con of different economic systems. In the evaluation, the study of the term, the most repeated themes are the economic systems and globalization which have been influenced by the differences in argument and the evaluation of each of them i.e. socialism, communism, and capitalism. As well, the issue of employment and its impact on the economy is a theme that has been repeated as seen in the discussion of the work of John Maynard Keynes who has elaborated the issue. This has influenced the discussion of the contribution of different people to the economy of a specific place and which have an impact on the development and retrogression of an area (Keynes 13-19). Through evaluation of the various consumption and investment habits of the people, Keynes has based his explanation for development or retrogression of a place in that where if the latter is greater than the former, development is realized (Campbell 212). Francis Fukuyama argues that there are transitions in the economy from the general state of restriction through which different people went so that they become the current liberals.  

Past and Present Economical situation (Macroeconomics) of South Africa Research Paper

Past and Present Economical situation (Macroeconomics) of South Africa - Research Paper Example In the similar context, it has been stated by the scientists that the Late Stone Age people are living in southern part of Africa for a very long period before the blacks or the whites came into being to stay there. Furthermore, it can be stated that according to the evidences provided it can be observed that a sculpture of a rock is created by the Khoisan around 26000 years ago. The introduction of iron changed the African continent completely and it therefore provided a boost in the development of mankind. Agriculture has altered the lifestyle of the African people completely as South Africa largely is an agricultural country. The farming of agricultural lands provided an important aspect in the overall development of African population. Agriculture is a key contributing factor towards the overall economic growth in South Africa (The Early History of South Africa, n.d.). Short History about the Economic Background of South Africa South African economy has been a generally fluctuati ng economy. In the past few decades, it has witnessed a sustained growth in terms of real per capita income. However, in recent decades noticeable fall in real per capita income was observed primarily due to political instability as well as change in the country. According to the observation of World Bank, it can be idealized that in the middle income nations such as South Africa economic regress can occur as rapidly as economic progress. The global economic environment has been a major influence on the pattern of economic development in South Africa over its historical progression (Fedderke & Simkins, 2006). Figure: Real Per Capita GDP as well as Associated Growth Rate, A Historical Trend in South Africa Source: (Fedderke & Simkins, 2006) In the current context, the economy of South Africa is recovering from the earlier setbacks, but it has been weakened due to certain economic slumps. Moreover, with reference to the current trend of advanced economies, it can be recognized that du e to economic setbacks growth has become too low largely due to considerable depression in unemployment. In the related context, it can also be said that according to World Economic Outlook, it can be predicted that there was slump in the economic aspects from the initial part of 2012. Economy in the global context will remain at around 3.3 percent and 3.6 percent in 2012 and 2013 respectively. Productivity is expected to remain sluggish in advanced economies, providing no effect on the emerging markets and developing economies. Moreover, unemployment is likely to stay high in most of the parts in the world, with the financial conditions remaining delicate according to the reports presented by Global Financial Stability Report (GFSR) in October 2012. These factors have an impact on the overall economic scenario in South Africa in the coming years (International Monetary Fund, 2012). Demographics of South Africa Demography is the numerical study of prevailing human populations. It in cludes the study of the structure, size as well as distribution of varied dimensions of a country’s population which also relates to birth, age and death. The analysis can be incorporated in the context of certain societal or group aspects such as education, nationality and ethnicity among others. The demography of South Africa is estimated on the basis of the statistical information gathered

Value of college Education Essay Example | Topics and Well Written Essays - 750 words

Value of college Education - Essay Example In this modern age of business and economy, the demand for higher education has increased tremendously. Anyone who cares for a better future strives to attain a college degree in order to get their dream jobs. The biggest advantage of having a college degree is getting a better job and also to be the best in the competitive job market. Most companies require their employees to have at least a four-year college degree and five years work experience in certain jobs they apply for before they are offered the jobs. College degree prepares a student for the task ahead in the job industries and that is a major reason why most people work extremely hard to attain college degree so that they are able to get the kind of jobs that they desire. I grew up in a very poor family where college is the last thing my parent want to spend money on. Looking at my surrounding, I figured out that the only discrimination in my society is whether you own a college degree or not. I made a promise to myself to step up to the standard of my society by working hard to ensure I have a college degree. It is very important to have a college degree in order to acquire and display necessary employability skills and create a pool of highly skilled labor that most companies are outsourcing from overseas. Most high-skilled jobs like accounting, information technology, and criminal justice among others require quality education that enables one to make the positive impact in the global market and also to continue to compete among the best in the global job market.

Methods for Simply Supported Beams and Columns in Steel Essay

Methods for Simply Supported Beams and Columns in Steel - Essay Example (Lecture 10.6.2: Shear Connection II) To define the total and fractional shear connection, one can simplify as only a simply supported beam by means of 'constant cross-sections' that are deemed to consideration of an evenly dispersed loading or of one concentrated load, but cannot be both. By taking the 'critical length' of a simply supported beam into consideration, the ultimate worth of the overall longitudinal shear force in the length could be calculated by presuming that the plastic resistance moment can be attained within the inner critical cross-section. Therefore the overall longitudinal shear force is equivalent to the less significant plastic axial resistance within either the steel component or the concrete slab within the critical cross-section in question. We can assume that ductile connectors are used for the reason of the design method for a partial shear connection. One should establish the notion of a lessened definitive moment curve and lacking the need to assess the slip along the steel-concrete interface. By assuming that every connector cultivates its design shear resistance, the overall longitudinal shear force within every significant length is equivalent to the total of the shear resistances of the connectors and also to the ultimate compressive force within the concrete slab. A significant choice for the efficient usage of composite beams in buildings is the partial shear connection. Simply supported beams designs depend on the connector ductility and when non-ductile shear connectors are employed the use of an elastic beam theory is used within the simplest design method, assessing the longitudinal shear force per unit length, although when the ductile shear connectors are used, the employment of plastic resistance of cross-sections used within the 'stress block design method'. (Lecture 10.6.2: Shear Connection II) A minimal measure of connectivity depends upon the beam's extent and attention is attracted to the requirements thereof. Through the application of the new (FRP) fibre reinforced polymer bars as extra strengthening within civil engineering constructions, by speedily attaining progress, it may well substitute the conventional steel as it consists of superior matter and of a very good cost-effectiveness. It also adds an advantage of more durability to conventional steel within a problematic atmosphere and surroundings and within areas where conventional steel has the unneeded magnetism or electricity conduction. 172357 3 Another method of column design is within a non-sway bare steel structure. "A semi-rigid design of partially restrained columns in non-sway steel frames." (Journal of Constructional Steel Research 1999) This of which withholds the semi-rigid action of the 'beam to column' connectivity upon the approximation of the efficient length ratio.

Penn Foster Principles of Management Final Exam Essay Example for Free

Penn Foster Principles of Management Final Exam Essay 1. In order to implement an organizations commitment to social responsibility it is necessary to identify what social problem the organization intends to address, develop policies on what the organization plans to do to successfully fulfill its obligation and ensure stakeholder buy-in. The main obstacles an organization faces when implementing socially responsible policies is pressure from stockholders and business analysis who want steady increase in earnings. Without steady increase in profits, it becomes difficult to reinvest money in these areas. The following actions can be taken toward increased social responsibility: 1. Examine expectations and past responses 2. Set objectives and prioritize 3. Plan and implement strategies 4. Set budgets for resources needed for social action 5. Monitor progress 2. Departmentalization is the practice in which grouping or combining jobs that are related to form a specialized area that is distinct from other areas in an organization. Work or functional departmentalization is a method of separating the activities performed within an organization into groups by the nature or function of the work they perform. For example, functional departmentalization would tend to group together staff members that perform a specialized function in an organization, like accounting. Product departmentalization is the grouping of business activities that are necessary to produce a particular product and/or market a product or service line under the direction of one manager. An example of product departmentalization would be a large multiproduct organization like an automotive distributor. Geographic departmentalization is when organizations are physically isolated to geographical regions. An example of geographical departmentalization is a manufacturing company that has locations in Northern and Southern locations that deal with consumers within their region. Customer departmentalization is when an organization is divided into units that handle specific customer needs. Examples of customer departmentalization in a manufacturing plant are: Assembly, shipping, billing, etc. 3. The acronym SWOT stands for an organizations strengths, weaknesses, opportunities and threats. A SWOT analysis is strategic planning method that evaluates the internal and external performance of an organization to see if it’s favorable or unfavorable to achieve whatever objective you are set out to accomplish. Strengths and weaknesses usually arise from the internal aspect of an organization, whereas opportunities and threats evolve from external components. By performing a SWOT analysis it provides information to managers to help formulate a successful strategy to achieve goals. PART B 1. Six Sigma is a management philosophy that sets objectives, collects data and analyzes results as a way to remove wasted expenses from its processes and help reduce the number of defective products produced. Six Sigma uses quality measures to strive for near perfection by eliminating errors and variables. 2. The balance of trade is the point where the difference between exports and imports is favorable for the country. When the country imports more than it exports, it results in a trade deficit and when the country exports more than it imports, the country runs into a trade surplus. The balance of trade for a countries economy is a very fine balance. The economic condition can change and a deficit or surplus may be an ideal situation. 3. In the context of communication, perception is based on the individual that is on the receiving end of the information. Perception is a process in which stimulation of the senses, whether written, verbal or non-verbal, is translated into a meaningf ul experience. Each person perceives the same information differently and they tend to only listens to part of the message before perception distorts the intended message. 4. The term organizational decentralization refers to the increased amount of authority given to lower level management by upper level management. By allowing lower level management to be involved in decision making, it enables actions to happen in a timelier manner and promotes higher employee morale, as well as relieves upper management from time consuming projects. 5. Simon’s theory, principle of bounded rationality as it applies to satisficing can be summarized as a decision making strategy that selects the best alternative rather than continuing to search for the optimal solution to any given situation. 6. In relations to leadership, consideration and initiating structure both contribute positively to staff motivation and satisfaction, as well as, effectiveness. 7. Positive reinforcement is to add a positive outcome as a result of a desired behavior. Negative reinforcement is to give the person the opportunity to avoid a negative consequence by increasing the likelihood that the desired behavior will reoccur. Both are used to increase the frequency of the desired behavior. 8. Planning – The manager sets objectives and decided what needs to be done to meet those goals. Organizing – The manager divides work into manageable activities and selects people to accomplish the task that need to be done. Staffing – The manager determines how many and what kind of staff is needed to meet the organizations goals and then recruits and trains the appropriate people. Leading – The manager motivates and communicates with staff and also directs them towards meeting the organizational goals. Controlling – The manager measures and analyzes the organizations performance, and makes changes if financial standards are not being m et. 9. A manager would use the critical-incident appraisal method for assessing employees’ written record of both satisfactory and unsatisfactory work performances. Performance is documented as it occurs and can aid in preparing performance evaluations to identify strengths and areas that need improvement. 10. Group norm is an informal set of rules a group takes on to regulate group behavior, whereas group cohesiveness is the overall attraction each member has for the group. Group norm example: Employees that work on assembly line #1 at the local factory always sit at the same lunch table and don’t interact with others. Group cohesiveness example: Employees on assembly line #2 have beaten the monthly production record for the 10th month in a row.

Determinants in the Process of Knowledge Transfer

Determinants in the Process of Knowledge Transfer Knowledge was closely investigated by academic researchers for the last few decades. It is nowadays considered as one of the most important strategic assets (Winter, 1987) that contribute to the competitive advantage of the firms (Kogut and Zander, 1992); this perspective is associated with the knowledge-based view (Grant, 1996). Resulting from that numerous studies exist about knowledge. As Winter (1987) suggests, knowledge can be created, stored and transmitted (transferred), exploited and the ability to success in these activities represents the essence of the firm. Different studies consider these various stages. However, the process of transfer is very interesting to reflect on because it is precisely knowledge transfer that has been established by several academics as having a major impact on performance (Cohen and Levinthal, 1990; Osterloh and Frey 2000). Some literature analyzes the process of knowledge transfer itself (ODell and Grayson, 1998; Szulanski, 2000), and its determinants (Grant and Baden- Fuller, 2000), other its boundaries (Szulanski, 1996; Salk, 1996; Hennart et al. 1999; Dyer and Hatch, 2006; Heiman and Nickerson, 2004). Together the authors try to shed light on the stages of knowledge transfer and factors that can positively or negatively contribute to it. Despite the abundance of studies, some researchers like Wagner (2005) call for the investigation of soft issues such as absorptive capacity and culture in successful knowledge sharing. Moreover, different researchers (Inkpen, 2000; Mowery et al. 1996), studied knowledge in the context of a strategic alliance. Some studies convey the idea that this might be the most appropriate form of collaboration in order to share (transfer) knowledge because of several advantages (Grant and Baden-Fuller, 2004). Other academics, as Simonin (1999), define difficulties that alliances face in the process of knowledge transfer. Therefore it might be useful to combine these ideas and see what makes alliances being so unique and how knowledge can be transferred in these structures. This literature review is meant to integrate various studies to make a clear picture of what makes the transfer of knowledge successful in-between partners of strategic alliance by reviewing determinants of knowledge transfer, particularities of alliances and possible strategies to follow in order to achieve the transfer. Problem statement The problem indication brings us to delimitate the following area of research: Successful knowledge transfer in a strategic alliance Research Questions Since knowledge becomes an essential asset, and its manipulation might have strong impact on the wellbeing and performance of the firm, it is interesting to investigate the knowledge transfer. Our inquiry will be done by first looking at what is knowledge and its different kinds. Then the models of knowledge transfer (in general) will be considered to see how knowledge is shared, finishing with the factors that can impact positively or negatively (barriers) on this process, this includes the soft issues sited previously. Research question 1: What are the key determinants in the process of knowledge transfer? Strategic alliances are often used by firms to transfer knowledge. Several studies might convey the idea that alliances is the most appropriate form of cooperation in order to transfer knowledge, that is why in the second research question we are going to discuss characteristics and particularities of alliances that contribute to build a solid ground for knowledge transfer. Research question 2: What characteristics and particularities of the strategic alliance might shape the process of knowledge transfer in this form of cooperation? Perhaps the most practical issue for organizations involved in the process of knowledge transfer within a strategic alliance is the one that deals with practices to implement and strategies to follow for both partners. Therefore the third research question will deal with possible behavior and ways of doing that can facilitate the knowledge transfer within a strategic alliance. Research question3: What strategies and behavior could the parties of the strategic alliance adopt  (implement) to enhance the transfer of knowledge and cope with the difficulties alliance might face? Research methods This is a descriptive research that will be done in the form of literature review. The data sources are the existing academic literature in the field of management, strategy and organization science. The literature includes top journals such as Journal of Management Studies, Strategic Management Journal, Knowledge and Process Management, Academy of Management Journal Structure of the thesis In the second chapter the investigation will be done in order to gain knowledge of what could be the determinants of the knowledge transfer in general (without considering the context of the strategic alliances). To do this, first of all, knowledge and its different kinds have to be defined. Following that the review of the literature about the process of knowledge transfer itself will be made. Chapter 2 will end with the review of possible factors that can affect the process by whether contributing to its success or by creating barriers to it. In the third chapter we are going to take a closer look on the strategic alliances. Following the definition, the discussion will pursue in order to understand why certain researchers think that strategic alliances are the most appropriate form of collaboration between firms for the process of knowledge transfer. Moreover, in this chapter we are going to look if certain characteristics of the alliance can ameliorate the transfer (i.e. firms similarities, orientation, strategy, resources). The last research question will be answered in the fourth chapter by examining the possible strategies and behaviors that companies involved in the alliance could undertake to enable a successful knowledge transfer, while they might face several challenges. At the end, conclusions will summarize this literature review bringing up possible questions for future discussion and useful recommendations about knowledge transfer within a strategic alliance. Chapter 2: The determinants in the process of knowledge transfer 1/ What is knowledge In general knowledge is considered to be gained by observation, study and experiences. It is the mixture of values, context information, expert insight (Davenport and Prusak, 1998) that resides within the person. It can be accumulated and subjected to improvements unlimited number of times. It is difficult to distinguish knowledge in itself from data and from information. Knowledge is neither of these two. Data results from transactions and information is derived from data. Fransman (1998) clearly underlines the fact that knowledge is indeed processed information. In this sense it is also possible to say that knowledge is socially constructed (Pentland 1995): individuals produce knowledge by processing information through their intellect. They act on knowledge by their actions and going through experiences, meanwhile their perspectives and insights change creating the opportunity to proceed differently in new situations, when new sets of information are available (Quinn et al. 1998; Weick 1995). 2/ Types of knowledge Another approach to introduce knowledge would be to state its different kinds: tacit and explicit. The observation of the existence of the explicit knowledge goes back to Polanyi (1966). Later the number of terms used were substantially enlarged to: formal, verbal knowledge (Corsini, 1987), declarative knowledge (Kogut and Zander, 1992), theoretical kind of knowledge (Nonaka and Takeuchi 1995), articulated or articulable knowledge (Hedlund, 1994; Winter, 1987), a know-why knowledge (Sanchez 1997). To Polanyi (1966) explicit knowledge is easily subjected to codification in a formal language (can be stated or written down). Winter (1987, p. 171) agrees on that definition by saying that this type of knowledge can be communicated from its possessor to another person in symbolic form and the recipient of the communication becomes as much in the know as the originator. Sobol and Lei (1994) identified two ways in which one can think about explicit knowledge. The first one in terms of communicability: it is easily written down, encoded, explained, or understood (Sobol and Lei, 1994, p. 170). Its also possible to think about this kind of knowledge in terms of possession: such knowledge is not specific or idiosyncratic to the firm or person possessing it (p. 170). Perhaps for this research the most interesting type of knowledge is the tacit knowledge because it is the one that largely contributes to competitive advantage of the firm. In fact, it was determined by several scholars (Delios and Beamish, 2001; Fang et al., 2007; Pisano, 1994) that tacit (as well as complex and specific) knowledge brings organizations to better-quality performance if its transfer was successfully accomplished. Also it is the type of knowledge that is considered to bring substantial competitive advantage by several academics (Nonaka, 1991; Grant, 1993; Spender, 1993). Polanyi (1966) wrote that tacit knowledge is non-verbalizable, intuitive and unarticulated. Consequently it is hard to replicate and share. Deeper understanding was brought by Nonaka (1994) and (Sternberg, 1994) who both support the fact that tacit knowledge is context-specific: it is a knowledge typically acquired on the job or in the situation where it is used (Sternberg, 1994, p. 28). Nonaka (1994) as other researchers also wrote that tacit knowledge is personal (Sanchez 1997), difficult to articulate, and highly linked with action (Nonaka and Takeuchi 1995). Therefore, on the one hand tacit knowledge is very difficult to transfer but on the other hand this same characteristic makes it being a critical and strategic resource of the firm and its competitive advantage, because competitors can hardly replicate it (Grant,1993; Sobal and Lei, 1994). 3/ Models: How to transmit knowledge Before getting to discussion in which the transfer of knowledge involves strategic alliances, it is useful to look at the process itself. Several models attempt to explain the basics of knowledge transfer. Some of them identify key elements that play a role this process, other present stages and steps, finally some conditions are also acknowledged. In order to understand how knowledge is transferred it is possible to first look at the definitions in cognitive psychology. At the individual level, the transfer was defined as how knowledge acquired in one situation applies (or fails to apply) to another by Singley and Anderson (1989). The transfer of knowledge in the organizational context also involves transfer at the individual level because the evolution of knowledge merely occurs when individuals express the will to share their experiences and insights with others (Davenport and Prusak, 1998; Kim and Mauborgne, 1998). This movement of knowledge through various levels of organization from individual, through group, up to organizational was identified by Nonaka (1994) as the concept of spiral of knowledge creation. The same process as on individual level occurs also at other levels such as group, department, divisionà ¢Ã¢â€š ¬Ã‚ ¦ Here the transfer of knowledge is the process in which knowledge and experience of one unit (company, group or department) affects another. Szulanski (2000, p.10) supports this vision: Knowledge transfer is seen as a process in which an organization recreates and maintains a complex, causally ambiguous set of routines (i.e. knowledge and experiences) in a new setting (i.e. another com pany, department, divisionà ¢Ã¢â€š ¬Ã‚ ¦). Knowledge transfer can be regarded as process which is composed of basic elements. Szulanski (2000) identified them as: source, channel, message, recipient, and context. Obviously, source is the unit from which the message (knowledge) will flow to the recipient by the channel and the whole process will be considered in a particular organizational context which can be fertile (facilitates knowledge transfer) or barren (problems occur with transfer). In the same research he explained several stages of the process of knowledge transfer. The process usually starts by the initiation. Then comes the implementation phase divided into several stages: the initial implementation effort, the ramp-up to satisfactory performance, and subsequent follow-through and evaluation efforts to integrate the practice with other practices of the recipient (Szulanski 2000, p.12) Furthermore, ODell and Grayson (1998) elaborated six steps in the knowledge transfer. Primary the identification of important knowledge is necessary. From this point on it is essential to collect the knowledge systematically and then organize the knowledge. When knowledge has been organized it can be shared (transferred), but before the final stage of usage of knowledge to solve problems, it has to be adapted. A number of conditions of knowledge transfer were presented by Grant and Baden-Fuller (2000). There are three main conditions of knowledge transfer. Firstly, the transmitters knowledge must be capable of being expressed in a communicable form. It is effortlessly done with explicit knowledge, however tacit knowledge has to be made explicit with the help of an expert system or be shared trough process of observation and imitation (p.122). What is more, transferred knowledge must be understandable to the source and the recipient. Therefore both have to use common knowledge which can be expressed in terms of the same language, information technology skills and culture. Finally, the new knowledge transferred from the source to recipient must be capable of aggregation which means that it would be possible to add to already existing knowledge. 4/What factors can influence the transfer of knowledge (positive and negative) Several features may play a substantial role in the process of knowledge transfer. When looking at the literature the most obvious in terms of determinants of knowledge transfer, might be the type of knowledge that is transferred. Explicit knowledge is easy to codify and to transfer. Conversely, a large number of studies, like Grant (1996), report the negative influence of knowledge tacitness on its transfer. In general it is considered that tacit knowledge is very difficult to share because of the complexity of its codification (Reed and DeFillippi, 1990) and organizational embeddedness (Kogut and Zander 1992) and that it contributes to creating ambiguity which can most of the times create barriers to the process of transfer. Simonin (1999, 2004) proposed a model in which knowledge tacitness indirectly influences knowledge transfer through ambiguity; it nevertheless specifies the importance of knowledge tacitness as critical factor which makes knowledge transfer difficult. Academics like Grant (1996), Reed and DeFillippi (1990) and Zander and Kogut (1995) raise the issue of complexity of knowledge. Complexity may appear for example when different kinds of skills and wide range of knowledge (individual, team-based experiences, technologies) have to be shared. The more complex the knowledge, the more difficult it is to share. Reed and DeFillippi (1990) also considered the influence of the specificity on knowledge transfer. The term refers to knowledge which is related only to certain kind of transaction relations. Williamson (1999) defined specificity as the ease with which an asset can be redeployed to alternative uses and by alternative users without loss of productive value. From these studies it is now clear that tacitness, complexity and specificity impedes to knowledge transfer by creating ambiguity. According to Simonin (1999) tacitness has the greatest influence in this relationship, followed by specificity, which is much less significant and finally complexity. It seems that culture and willingness to share, elements often cited as factors that can influence knowledge transfer, are interrelated. Willingness to share is one of the key determinants of knowledge transfer; this means that one must be willing to share and the other one to receive. It is not always easy to let go from knowledge. As Bernstein (2000) suggests that willingness to share is influenced by identity because an individual might have a psychological ownership over the knowledge he possesses. Furthermore, Alavi and Leidner (1999) made a good remark about the fact that it will be difficult for organizations to share knowledge and integrate knowledge-based systems without primary having the information sharing culture (i.e. valuing information sharing). Davenport (1997) describes this as open versus closed culture. Very similar to the concept of willingness to share, Szulanski (1996, p.12) argued that lack of motivation also has to be considered as one of the barriers to the process of knowledge transfer because it may result in procrastination, passivity, feigned acceptance, sabotage, or outright rejection in the implementation and use of new knowledge. Szulanski (1996) also noticed another barrier of knowledge transfer. Absorptive capacity is one of the very well known elements that influence the transfer of knowledge. It is the ability to exploit outside sources of knowledge (Cohen Levinthal, 1990, p. 128) and integrate it by replacing old practices by new ones, which is not always effortless (Glaser, Abelson, Garrison, 1983). Chapter 3: Particularities of strategic alliances shaping the process of knowledge transfer Combining resources is the logical response to the harshness of nowadays competition. Other factors as the increase in customers expectations and the less strict regulatory barriers also led companies to form alliances (Gomes-Casseres 1994; Harrigan 1988; Kogut 1988; Nielsen 1988). However these are not the only possibilities alliances are able to provide. Alliances can be considered as one of the means for knowledge gaining and sharing, besides mergers and acquisitions. According to Inkpen (2000) there exist several possibilities for companies to transfer and gain knowledge: internalization within the firm, market contracts, and relational contracts. He considers individual strategic alliances as relational contracts that permit knowledge acquisition and transfer, suitable in the context where knowledge is complex and hard to codify, whereas market based transfers are considered to be more efficient for product related (embodied) knowledge. Number of other researchers also supported the fact that alliances permit firms to share knowledge and ultimately to learn from the partners (Grant, 1996; Hamel, 1991; Khanna et al., 1998; Kogut, 1998). Inkpen (2000, p.1019) wrote: Through the shared execution of the alliance task, mutual interdependence and problem solving , and observation of alliance activities and outcomes, firms can learn from their partners. 1/ Definition strategic alliance In the literature it is possible to find several key characteristics of an alliance. An alliance is usually created between two or more firms that cooperate together in order to achieve some strategic objective, create value that they would not be able to achieve on their own (Borys and Jemison, 1989) and pursue a set of goals (Harrigan 1988; Yoshino and Rangan 1995). Partners are complementary and contribute with their resources and capabilities (Teece, 1992); they are involved in a range of interdependent activities (Contractor and Lorange 1988>2002) and share benefits and risks of the alliance. Dussauge et al. (2000, p.99) described an alliance between two Knowledge Based Enterprises as: an arrangement between two or more independent companies that choose to carry out a project or operate in a specific business area by co-coordinating the necessary skills and resources jointly rather than either operating alone or merging their operations. Some academics consider alliances to be arrangements in which firms establish exchange relationship without joint ownership being considered as a form of alliance (Dickson Weaver, 1997); others consider equity alliances such as joint ventures, also be a form of alliance (Mowery et al. 1996). In this research all possible forms of alliances are considered: a non-equity alliance (co-operation without creation of new organization or exchange of equity); an equity alliance (unilateral or bilateral equity holding among partners without creation of the a new firm); a joint venture (new firm is created, involving joint resources, where partners share ownership and control) 2/ Why strategic alliance can be considered (by certain researchers) the most appropriate form of collaboration for knowledge transfer? Accordingly, of all approaches to knowledge imitability between a knowledge holder and a knowledge seeker, strategic alliances constitute perhaps the most adequate, but nevertheless challenging vehicle for internalizing the others competency Simonin (1999, 595). There are several forms of interorganizational exchange that enable firms to protect valuable resources including mergers and acquisitions, licensing and alliances (Coff, 1997). There are two kinds of knowledge explicit and tacit (Polanyi, 1966), therefore if two firms share knowledge, it will be explicit explicit, explicit tacit or tacit tacit. Licensing can provide a solution for the first two combinations. Yet, it is very hard to gain competitive advantage with explicit knowledge resources, because they might be sold to other companies. By contrast, competitive advantage occurs when tacit knowledge assets are combined, provided their ambiguity, complexity and inimitability (Barney 1991; Dierickx and Cool 1989). This is done through alliances or mergers and acquisitions. Conventional sale contracts, markets, mergers and acquisitions seem to be less attractive structures for knowledge transfer in comparison with alliances. Coff (1997) found that it is not easy to evaluate the value of knowledge based resources, primary because of their tacitness (Mowery, 1983; Pisano, 1990). Firms that want to acquire new knowledge will have to face uncertainty concerning its characteristics and difficulties to determine its quality and to be certain of the transferability of the knowledge held by another firm. Some researchers raise a concern about the fact that in some cases the firm that will acquire knowledge is not certain to be able to deploy it (Flamholtz and Coff 1994; Haspeslagh and Jemison 1991; Polanyi 1966; Zander and Kogut 1995). In this sense, alliance permits to mitigate risks of bad investments. The indigestibility problem of MA, quite the opposite of alliances, was discussed by several academics (Hennart and Reddy, 1997; Inkpen and Beamish, 1997; Dunning, 1997). Indigestible assets are those who come with valuable assets during the transaction (Nonaka 1994). In fact, for some of these assets (in this case knowledge) the aftermarket may not exist after the acquisition. Within an alliance the company does not have to pay for digestion of non-valuable assets and has access to important knowledge resources held by the partner. Reid, Bussiere, Greenaway 2001 (alliance formation issues) Grant and Baden-Fuller (2004) identified some advantages of alliances related to knowledge like possibility to achieve early-mover advantage and risk spreading. Early-mover advantage signifies recombining knowledge into innovative products in a quickly advancing knowledge environment. More precisely, this means to quickly identify, access, and integrate across new knowledge combinations. In this situation strategic alliances enable company to quickly access knowledge necessary for introduction of new products to market. Grant and Baden-Fuller (2004) wrote: The greater the benefits of early-mover advantage in technologically-dynamic environments, the greater the propensity for firms to establish interfirm collaborative arrangements in order to access new knowledge. A risk exists in terms that sometimes a company might be uncertain about the future knowledge requirements and knowledge acquisition and integration takes time, the investments are risky (Grant and Baden-Fuller, 2004): The greater the uncertainty as to the future knowledge requirements of a firms product range, the greater its propensity to engage in interfirm collaborations as a means of accessing and integrating additional knowledge. Powell (1987) also noticed that alliance formation diminishes the risk that knowledge will dissipate quickly. 3/ Which characteristics and capabilities of alliance partners can ameliorate the transfer of knowledge? Before considering the transfer of knowledge, it is important to underline, that both partners of an alliance are expected to possess valuable knowledge (Eisenhardt and Schoonhoven 1996). Ahuja (2000) considered such knowledge possession as opportunity for linkage-formation. He also identified three categories of valuable knowledge assets that are: technical capital (capability to create new products, technology and processes), commercial capital (supporting resources) and social capital (useful networks). Throughout the literature it is possible to distinguish some capabilities that are important for proper functioning of the knowledge based alliance: absorptive capacity, combinative capability, experience with alliances, suitable design for knowledge exchange, and choice of alliance structure. In numerous studies, absorptive capacity plays an essential role in the process of knowledge transfer and learning within strategic alliances (Lane and Lubatkin, 1998). Van den Bosch et al. (1999) wrote that it combined the evaluation, acquisition integration and commercial utilization of knowledge obtained from sources exogenous to the firm. Absorptive capacity is susceptible to evolve and augment through activity (Barringer and Harrison, 2000) because it is historical and path dependent in nature as was defined by Cohen and Levinthal (1990). Grant (1996) recognized that knowledge absorption capability can be influenced by: the degree to which the expert knowledge held by organizational members is utilized; the width of specialized knowledge required from firm members; the degree to which a capability can access additional knowledge and reconfigure existing knowledge. Defined by Kogut and Zander (1992) combinative capability refers to the ability of the parties of an alliance to extend, interpret, apply, current and acquired knowledge with the goal of generating new applications from existing knowledge base. Collaborative know-how affects firms ability to form a successful partnership and create a solid ground for knowledge transfer. Simonin (1997) refers to it as to ability to institutionalize organizational routines as a result of previous experiences. Pennings et al. (1994) supports that firms tend to reproduce the behavior from their past experiences. When firms have previous experiences of collaboration within alliance, they acquire knowledge that helps them to effectively design future alliances (Lyles, 1988) and develop superior capabilities at managing particular organizational forms such as alliances (Kale et al., 2002, p. 748). This experience permits avoiding various difficulties (Doz, 1996; Powell et al., 1996). Teece (2000) stressed the importance of the design of the firm to enhance performance and knowledge sharing. He identified distinctive characteristics of design in successful firms. Among these, entrepreneurial orientation and flexibility expressed in rapid responses to ephemeral market opportunities flexible boundaries (outsourcing and alliances). They were also characterized by their non-bureaucratic decision making and rapid internal knowledge sharing owing to the not really strict hierarchies. The choice of alliance structure should be determined considering the perspective of gaining valuable resources (knowledge) from a partner without losing its own (Das and Teng, 2000). Different views exist as to effectiveness of equity joint venture form of alliance for successful knowledge transfer. Several researchers find that this form is the most suitable for the transfer of tacit knowledge and complex capabilities (Kogut, 1988, Mowery et al., 1996). However, Das and Teng (2000) think that this structure is too risky for partnership based on knowledge-based contribution, and that it is more suitable for contributing property-based resources. Inkpen (2002) identifies five categories of antecedents of alliance learning: learning partner characteristics; teaching partner characteristics; knowledge characteristics; relationship factors; and alliance form. Two key characteristics of the learning partner, identified by Nielsen and Nielsen (2009), are important, namely collaborative know-how (same as previous experience of alliances) and knowledge protectiveness (Simonin, 1997, 1999). Protectiveness matches the concept of openness and the degree to which partners are protective of their knowledge. How well do the support the risk of knowledge leakage or spillover (Inkpen, 2000). Chapter 4: potential strategies and behavior that parties of the strategic alliance might adopt to enhance the transfer of knowledge and to cope with difficulties alliances might face Strategic alliances might face a number of difficulties. The first thing that comes out from the numerous literature on strategic alliance and knowledge sharing, is the fear of knowledge spillovers, that are assumed to be inevitable consequence of alliance involvement, despite the efforts companies make in order to protect their valuable knowledge assets (Inkpen, 2000). Therefore, it immediately comes to the issue of trust. In the late 90 a discussion was raised about the possibility that some firms use strategic alliance as a Trojan Horse in order to steal knowledge from its partners. This was especially thought about Japanese partners. However empirical studies do not find support for this hypothesis (Hennart et al. 1999; Mowery 1996). The literature elaborates on so called learning races (Khanna et al. 1998) when one partner (acts opportunistically) tries to gain more knowledge in the alliance exchange, than he shares. Hamel (1991, 86) described alliances as transitional devices where the primary objective was the internalization of partner skills. This creates a significant challenge for strategic alliance. To deal with with this issue, norms and systems can be designed; functional rules can be developed to structure partner engagement (QuÃÆ' ©lin, 1997). When little trust is involved, this may lead to knowledge protectiveness from one or both of the partners. Nielsen and Nielsen (2009) wrote that protectiveness not only may lead to uncertainty and conflict but it also reduces the amount of information exchanged. Determinants in the Process of Knowledge Transfer Determinants in the Process of Knowledge Transfer Knowledge was closely investigated by academic researchers for the last few decades. It is nowadays considered as one of the most important strategic assets (Winter, 1987) that contribute to the competitive advantage of the firms (Kogut and Zander, 1992); this perspective is associated with the knowledge-based view (Grant, 1996). Resulting from that numerous studies exist about knowledge. As Winter (1987) suggests, knowledge can be created, stored and transmitted (transferred), exploited and the ability to success in these activities represents the essence of the firm. Different studies consider these various stages. However, the process of transfer is very interesting to reflect on because it is precisely knowledge transfer that has been established by several academics as having a major impact on performance (Cohen and Levinthal, 1990; Osterloh and Frey 2000). Some literature analyzes the process of knowledge transfer itself (ODell and Grayson, 1998; Szulanski, 2000), and its determinants (Grant and Baden- Fuller, 2000), other its boundaries (Szulanski, 1996; Salk, 1996; Hennart et al. 1999; Dyer and Hatch, 2006; Heiman and Nickerson, 2004). Together the authors try to shed light on the stages of knowledge transfer and factors that can positively or negatively contribute to it. Despite the abundance of studies, some researchers like Wagner (2005) call for the investigation of soft issues such as absorptive capacity and culture in successful knowledge sharing. Moreover, different researchers (Inkpen, 2000; Mowery et al. 1996), studied knowledge in the context of a strategic alliance. Some studies convey the idea that this might be the most appropriate form of collaboration in order to share (transfer) knowledge because of several advantages (Grant and Baden-Fuller, 2004). Other academics, as Simonin (1999), define difficulties that alliances face in the process of knowledge transfer. Therefore it might be useful to combine these ideas and see what makes alliances being so unique and how knowledge can be transferred in these structures. This literature review is meant to integrate various studies to make a clear picture of what makes the transfer of knowledge successful in-between partners of strategic alliance by reviewing determinants of knowledge transfer, particularities of alliances and possible strategies to follow in order to achieve the transfer. Problem statement The problem indication brings us to delimitate the following area of research: Successful knowledge transfer in a strategic alliance Research Questions Since knowledge becomes an essential asset, and its manipulation might have strong impact on the wellbeing and performance of the firm, it is interesting to investigate the knowledge transfer. Our inquiry will be done by first looking at what is knowledge and its different kinds. Then the models of knowledge transfer (in general) will be considered to see how knowledge is shared, finishing with the factors that can impact positively or negatively (barriers) on this process, this includes the soft issues sited previously. Research question 1: What are the key determinants in the process of knowledge transfer? Strategic alliances are often used by firms to transfer knowledge. Several studies might convey the idea that alliances is the most appropriate form of cooperation in order to transfer knowledge, that is why in the second research question we are going to discuss characteristics and particularities of alliances that contribute to build a solid ground for knowledge transfer. Research question 2: What characteristics and particularities of the strategic alliance might shape the process of knowledge transfer in this form of cooperation? Perhaps the most practical issue for organizations involved in the process of knowledge transfer within a strategic alliance is the one that deals with practices to implement and strategies to follow for both partners. Therefore the third research question will deal with possible behavior and ways of doing that can facilitate the knowledge transfer within a strategic alliance. Research question3: What strategies and behavior could the parties of the strategic alliance adopt  (implement) to enhance the transfer of knowledge and cope with the difficulties alliance might face? Research methods This is a descriptive research that will be done in the form of literature review. The data sources are the existing academic literature in the field of management, strategy and organization science. The literature includes top journals such as Journal of Management Studies, Strategic Management Journal, Knowledge and Process Management, Academy of Management Journal Structure of the thesis In the second chapter the investigation will be done in order to gain knowledge of what could be the determinants of the knowledge transfer in general (without considering the context of the strategic alliances). To do this, first of all, knowledge and its different kinds have to be defined. Following that the review of the literature about the process of knowledge transfer itself will be made. Chapter 2 will end with the review of possible factors that can affect the process by whether contributing to its success or by creating barriers to it. In the third chapter we are going to take a closer look on the strategic alliances. Following the definition, the discussion will pursue in order to understand why certain researchers think that strategic alliances are the most appropriate form of collaboration between firms for the process of knowledge transfer. Moreover, in this chapter we are going to look if certain characteristics of the alliance can ameliorate the transfer (i.e. firms similarities, orientation, strategy, resources). The last research question will be answered in the fourth chapter by examining the possible strategies and behaviors that companies involved in the alliance could undertake to enable a successful knowledge transfer, while they might face several challenges. At the end, conclusions will summarize this literature review bringing up possible questions for future discussion and useful recommendations about knowledge transfer within a strategic alliance. Chapter 2: The determinants in the process of knowledge transfer 1/ What is knowledge In general knowledge is considered to be gained by observation, study and experiences. It is the mixture of values, context information, expert insight (Davenport and Prusak, 1998) that resides within the person. It can be accumulated and subjected to improvements unlimited number of times. It is difficult to distinguish knowledge in itself from data and from information. Knowledge is neither of these two. Data results from transactions and information is derived from data. Fransman (1998) clearly underlines the fact that knowledge is indeed processed information. In this sense it is also possible to say that knowledge is socially constructed (Pentland 1995): individuals produce knowledge by processing information through their intellect. They act on knowledge by their actions and going through experiences, meanwhile their perspectives and insights change creating the opportunity to proceed differently in new situations, when new sets of information are available (Quinn et al. 1998; Weick 1995). 2/ Types of knowledge Another approach to introduce knowledge would be to state its different kinds: tacit and explicit. The observation of the existence of the explicit knowledge goes back to Polanyi (1966). Later the number of terms used were substantially enlarged to: formal, verbal knowledge (Corsini, 1987), declarative knowledge (Kogut and Zander, 1992), theoretical kind of knowledge (Nonaka and Takeuchi 1995), articulated or articulable knowledge (Hedlund, 1994; Winter, 1987), a know-why knowledge (Sanchez 1997). To Polanyi (1966) explicit knowledge is easily subjected to codification in a formal language (can be stated or written down). Winter (1987, p. 171) agrees on that definition by saying that this type of knowledge can be communicated from its possessor to another person in symbolic form and the recipient of the communication becomes as much in the know as the originator. Sobol and Lei (1994) identified two ways in which one can think about explicit knowledge. The first one in terms of communicability: it is easily written down, encoded, explained, or understood (Sobol and Lei, 1994, p. 170). Its also possible to think about this kind of knowledge in terms of possession: such knowledge is not specific or idiosyncratic to the firm or person possessing it (p. 170). Perhaps for this research the most interesting type of knowledge is the tacit knowledge because it is the one that largely contributes to competitive advantage of the firm. In fact, it was determined by several scholars (Delios and Beamish, 2001; Fang et al., 2007; Pisano, 1994) that tacit (as well as complex and specific) knowledge brings organizations to better-quality performance if its transfer was successfully accomplished. Also it is the type of knowledge that is considered to bring substantial competitive advantage by several academics (Nonaka, 1991; Grant, 1993; Spender, 1993). Polanyi (1966) wrote that tacit knowledge is non-verbalizable, intuitive and unarticulated. Consequently it is hard to replicate and share. Deeper understanding was brought by Nonaka (1994) and (Sternberg, 1994) who both support the fact that tacit knowledge is context-specific: it is a knowledge typically acquired on the job or in the situation where it is used (Sternberg, 1994, p. 28). Nonaka (1994) as other researchers also wrote that tacit knowledge is personal (Sanchez 1997), difficult to articulate, and highly linked with action (Nonaka and Takeuchi 1995). Therefore, on the one hand tacit knowledge is very difficult to transfer but on the other hand this same characteristic makes it being a critical and strategic resource of the firm and its competitive advantage, because competitors can hardly replicate it (Grant,1993; Sobal and Lei, 1994). 3/ Models: How to transmit knowledge Before getting to discussion in which the transfer of knowledge involves strategic alliances, it is useful to look at the process itself. Several models attempt to explain the basics of knowledge transfer. Some of them identify key elements that play a role this process, other present stages and steps, finally some conditions are also acknowledged. In order to understand how knowledge is transferred it is possible to first look at the definitions in cognitive psychology. At the individual level, the transfer was defined as how knowledge acquired in one situation applies (or fails to apply) to another by Singley and Anderson (1989). The transfer of knowledge in the organizational context also involves transfer at the individual level because the evolution of knowledge merely occurs when individuals express the will to share their experiences and insights with others (Davenport and Prusak, 1998; Kim and Mauborgne, 1998). This movement of knowledge through various levels of organization from individual, through group, up to organizational was identified by Nonaka (1994) as the concept of spiral of knowledge creation. The same process as on individual level occurs also at other levels such as group, department, divisionà ¢Ã¢â€š ¬Ã‚ ¦ Here the transfer of knowledge is the process in which knowledge and experience of one unit (company, group or department) affects another. Szulanski (2000, p.10) supports this vision: Knowledge transfer is seen as a process in which an organization recreates and maintains a complex, causally ambiguous set of routines (i.e. knowledge and experiences) in a new setting (i.e. another com pany, department, divisionà ¢Ã¢â€š ¬Ã‚ ¦). Knowledge transfer can be regarded as process which is composed of basic elements. Szulanski (2000) identified them as: source, channel, message, recipient, and context. Obviously, source is the unit from which the message (knowledge) will flow to the recipient by the channel and the whole process will be considered in a particular organizational context which can be fertile (facilitates knowledge transfer) or barren (problems occur with transfer). In the same research he explained several stages of the process of knowledge transfer. The process usually starts by the initiation. Then comes the implementation phase divided into several stages: the initial implementation effort, the ramp-up to satisfactory performance, and subsequent follow-through and evaluation efforts to integrate the practice with other practices of the recipient (Szulanski 2000, p.12) Furthermore, ODell and Grayson (1998) elaborated six steps in the knowledge transfer. Primary the identification of important knowledge is necessary. From this point on it is essential to collect the knowledge systematically and then organize the knowledge. When knowledge has been organized it can be shared (transferred), but before the final stage of usage of knowledge to solve problems, it has to be adapted. A number of conditions of knowledge transfer were presented by Grant and Baden-Fuller (2000). There are three main conditions of knowledge transfer. Firstly, the transmitters knowledge must be capable of being expressed in a communicable form. It is effortlessly done with explicit knowledge, however tacit knowledge has to be made explicit with the help of an expert system or be shared trough process of observation and imitation (p.122). What is more, transferred knowledge must be understandable to the source and the recipient. Therefore both have to use common knowledge which can be expressed in terms of the same language, information technology skills and culture. Finally, the new knowledge transferred from the source to recipient must be capable of aggregation which means that it would be possible to add to already existing knowledge. 4/What factors can influence the transfer of knowledge (positive and negative) Several features may play a substantial role in the process of knowledge transfer. When looking at the literature the most obvious in terms of determinants of knowledge transfer, might be the type of knowledge that is transferred. Explicit knowledge is easy to codify and to transfer. Conversely, a large number of studies, like Grant (1996), report the negative influence of knowledge tacitness on its transfer. In general it is considered that tacit knowledge is very difficult to share because of the complexity of its codification (Reed and DeFillippi, 1990) and organizational embeddedness (Kogut and Zander 1992) and that it contributes to creating ambiguity which can most of the times create barriers to the process of transfer. Simonin (1999, 2004) proposed a model in which knowledge tacitness indirectly influences knowledge transfer through ambiguity; it nevertheless specifies the importance of knowledge tacitness as critical factor which makes knowledge transfer difficult. Academics like Grant (1996), Reed and DeFillippi (1990) and Zander and Kogut (1995) raise the issue of complexity of knowledge. Complexity may appear for example when different kinds of skills and wide range of knowledge (individual, team-based experiences, technologies) have to be shared. The more complex the knowledge, the more difficult it is to share. Reed and DeFillippi (1990) also considered the influence of the specificity on knowledge transfer. The term refers to knowledge which is related only to certain kind of transaction relations. Williamson (1999) defined specificity as the ease with which an asset can be redeployed to alternative uses and by alternative users without loss of productive value. From these studies it is now clear that tacitness, complexity and specificity impedes to knowledge transfer by creating ambiguity. According to Simonin (1999) tacitness has the greatest influence in this relationship, followed by specificity, which is much less significant and finally complexity. It seems that culture and willingness to share, elements often cited as factors that can influence knowledge transfer, are interrelated. Willingness to share is one of the key determinants of knowledge transfer; this means that one must be willing to share and the other one to receive. It is not always easy to let go from knowledge. As Bernstein (2000) suggests that willingness to share is influenced by identity because an individual might have a psychological ownership over the knowledge he possesses. Furthermore, Alavi and Leidner (1999) made a good remark about the fact that it will be difficult for organizations to share knowledge and integrate knowledge-based systems without primary having the information sharing culture (i.e. valuing information sharing). Davenport (1997) describes this as open versus closed culture. Very similar to the concept of willingness to share, Szulanski (1996, p.12) argued that lack of motivation also has to be considered as one of the barriers to the process of knowledge transfer because it may result in procrastination, passivity, feigned acceptance, sabotage, or outright rejection in the implementation and use of new knowledge. Szulanski (1996) also noticed another barrier of knowledge transfer. Absorptive capacity is one of the very well known elements that influence the transfer of knowledge. It is the ability to exploit outside sources of knowledge (Cohen Levinthal, 1990, p. 128) and integrate it by replacing old practices by new ones, which is not always effortless (Glaser, Abelson, Garrison, 1983). Chapter 3: Particularities of strategic alliances shaping the process of knowledge transfer Combining resources is the logical response to the harshness of nowadays competition. Other factors as the increase in customers expectations and the less strict regulatory barriers also led companies to form alliances (Gomes-Casseres 1994; Harrigan 1988; Kogut 1988; Nielsen 1988). However these are not the only possibilities alliances are able to provide. Alliances can be considered as one of the means for knowledge gaining and sharing, besides mergers and acquisitions. According to Inkpen (2000) there exist several possibilities for companies to transfer and gain knowledge: internalization within the firm, market contracts, and relational contracts. He considers individual strategic alliances as relational contracts that permit knowledge acquisition and transfer, suitable in the context where knowledge is complex and hard to codify, whereas market based transfers are considered to be more efficient for product related (embodied) knowledge. Number of other researchers also supported the fact that alliances permit firms to share knowledge and ultimately to learn from the partners (Grant, 1996; Hamel, 1991; Khanna et al., 1998; Kogut, 1998). Inkpen (2000, p.1019) wrote: Through the shared execution of the alliance task, mutual interdependence and problem solving , and observation of alliance activities and outcomes, firms can learn from their partners. 1/ Definition strategic alliance In the literature it is possible to find several key characteristics of an alliance. An alliance is usually created between two or more firms that cooperate together in order to achieve some strategic objective, create value that they would not be able to achieve on their own (Borys and Jemison, 1989) and pursue a set of goals (Harrigan 1988; Yoshino and Rangan 1995). Partners are complementary and contribute with their resources and capabilities (Teece, 1992); they are involved in a range of interdependent activities (Contractor and Lorange 1988>2002) and share benefits and risks of the alliance. Dussauge et al. (2000, p.99) described an alliance between two Knowledge Based Enterprises as: an arrangement between two or more independent companies that choose to carry out a project or operate in a specific business area by co-coordinating the necessary skills and resources jointly rather than either operating alone or merging their operations. Some academics consider alliances to be arrangements in which firms establish exchange relationship without joint ownership being considered as a form of alliance (Dickson Weaver, 1997); others consider equity alliances such as joint ventures, also be a form of alliance (Mowery et al. 1996). In this research all possible forms of alliances are considered: a non-equity alliance (co-operation without creation of new organization or exchange of equity); an equity alliance (unilateral or bilateral equity holding among partners without creation of the a new firm); a joint venture (new firm is created, involving joint resources, where partners share ownership and control) 2/ Why strategic alliance can be considered (by certain researchers) the most appropriate form of collaboration for knowledge transfer? Accordingly, of all approaches to knowledge imitability between a knowledge holder and a knowledge seeker, strategic alliances constitute perhaps the most adequate, but nevertheless challenging vehicle for internalizing the others competency Simonin (1999, 595). There are several forms of interorganizational exchange that enable firms to protect valuable resources including mergers and acquisitions, licensing and alliances (Coff, 1997). There are two kinds of knowledge explicit and tacit (Polanyi, 1966), therefore if two firms share knowledge, it will be explicit explicit, explicit tacit or tacit tacit. Licensing can provide a solution for the first two combinations. Yet, it is very hard to gain competitive advantage with explicit knowledge resources, because they might be sold to other companies. By contrast, competitive advantage occurs when tacit knowledge assets are combined, provided their ambiguity, complexity and inimitability (Barney 1991; Dierickx and Cool 1989). This is done through alliances or mergers and acquisitions. Conventional sale contracts, markets, mergers and acquisitions seem to be less attractive structures for knowledge transfer in comparison with alliances. Coff (1997) found that it is not easy to evaluate the value of knowledge based resources, primary because of their tacitness (Mowery, 1983; Pisano, 1990). Firms that want to acquire new knowledge will have to face uncertainty concerning its characteristics and difficulties to determine its quality and to be certain of the transferability of the knowledge held by another firm. Some researchers raise a concern about the fact that in some cases the firm that will acquire knowledge is not certain to be able to deploy it (Flamholtz and Coff 1994; Haspeslagh and Jemison 1991; Polanyi 1966; Zander and Kogut 1995). In this sense, alliance permits to mitigate risks of bad investments. The indigestibility problem of MA, quite the opposite of alliances, was discussed by several academics (Hennart and Reddy, 1997; Inkpen and Beamish, 1997; Dunning, 1997). Indigestible assets are those who come with valuable assets during the transaction (Nonaka 1994). In fact, for some of these assets (in this case knowledge) the aftermarket may not exist after the acquisition. Within an alliance the company does not have to pay for digestion of non-valuable assets and has access to important knowledge resources held by the partner. Reid, Bussiere, Greenaway 2001 (alliance formation issues) Grant and Baden-Fuller (2004) identified some advantages of alliances related to knowledge like possibility to achieve early-mover advantage and risk spreading. Early-mover advantage signifies recombining knowledge into innovative products in a quickly advancing knowledge environment. More precisely, this means to quickly identify, access, and integrate across new knowledge combinations. In this situation strategic alliances enable company to quickly access knowledge necessary for introduction of new products to market. Grant and Baden-Fuller (2004) wrote: The greater the benefits of early-mover advantage in technologically-dynamic environments, the greater the propensity for firms to establish interfirm collaborative arrangements in order to access new knowledge. A risk exists in terms that sometimes a company might be uncertain about the future knowledge requirements and knowledge acquisition and integration takes time, the investments are risky (Grant and Baden-Fuller, 2004): The greater the uncertainty as to the future knowledge requirements of a firms product range, the greater its propensity to engage in interfirm collaborations as a means of accessing and integrating additional knowledge. Powell (1987) also noticed that alliance formation diminishes the risk that knowledge will dissipate quickly. 3/ Which characteristics and capabilities of alliance partners can ameliorate the transfer of knowledge? Before considering the transfer of knowledge, it is important to underline, that both partners of an alliance are expected to possess valuable knowledge (Eisenhardt and Schoonhoven 1996). Ahuja (2000) considered such knowledge possession as opportunity for linkage-formation. He also identified three categories of valuable knowledge assets that are: technical capital (capability to create new products, technology and processes), commercial capital (supporting resources) and social capital (useful networks). Throughout the literature it is possible to distinguish some capabilities that are important for proper functioning of the knowledge based alliance: absorptive capacity, combinative capability, experience with alliances, suitable design for knowledge exchange, and choice of alliance structure. In numerous studies, absorptive capacity plays an essential role in the process of knowledge transfer and learning within strategic alliances (Lane and Lubatkin, 1998). Van den Bosch et al. (1999) wrote that it combined the evaluation, acquisition integration and commercial utilization of knowledge obtained from sources exogenous to the firm. Absorptive capacity is susceptible to evolve and augment through activity (Barringer and Harrison, 2000) because it is historical and path dependent in nature as was defined by Cohen and Levinthal (1990). Grant (1996) recognized that knowledge absorption capability can be influenced by: the degree to which the expert knowledge held by organizational members is utilized; the width of specialized knowledge required from firm members; the degree to which a capability can access additional knowledge and reconfigure existing knowledge. Defined by Kogut and Zander (1992) combinative capability refers to the ability of the parties of an alliance to extend, interpret, apply, current and acquired knowledge with the goal of generating new applications from existing knowledge base. Collaborative know-how affects firms ability to form a successful partnership and create a solid ground for knowledge transfer. Simonin (1997) refers to it as to ability to institutionalize organizational routines as a result of previous experiences. Pennings et al. (1994) supports that firms tend to reproduce the behavior from their past experiences. When firms have previous experiences of collaboration within alliance, they acquire knowledge that helps them to effectively design future alliances (Lyles, 1988) and develop superior capabilities at managing particular organizational forms such as alliances (Kale et al., 2002, p. 748). This experience permits avoiding various difficulties (Doz, 1996; Powell et al., 1996). Teece (2000) stressed the importance of the design of the firm to enhance performance and knowledge sharing. He identified distinctive characteristics of design in successful firms. Among these, entrepreneurial orientation and flexibility expressed in rapid responses to ephemeral market opportunities flexible boundaries (outsourcing and alliances). They were also characterized by their non-bureaucratic decision making and rapid internal knowledge sharing owing to the not really strict hierarchies. The choice of alliance structure should be determined considering the perspective of gaining valuable resources (knowledge) from a partner without losing its own (Das and Teng, 2000). Different views exist as to effectiveness of equity joint venture form of alliance for successful knowledge transfer. Several researchers find that this form is the most suitable for the transfer of tacit knowledge and complex capabilities (Kogut, 1988, Mowery et al., 1996). However, Das and Teng (2000) think that this structure is too risky for partnership based on knowledge-based contribution, and that it is more suitable for contributing property-based resources. Inkpen (2002) identifies five categories of antecedents of alliance learning: learning partner characteristics; teaching partner characteristics; knowledge characteristics; relationship factors; and alliance form. Two key characteristics of the learning partner, identified by Nielsen and Nielsen (2009), are important, namely collaborative know-how (same as previous experience of alliances) and knowledge protectiveness (Simonin, 1997, 1999). Protectiveness matches the concept of openness and the degree to which partners are protective of their knowledge. How well do the support the risk of knowledge leakage or spillover (Inkpen, 2000). Chapter 4: potential strategies and behavior that parties of the strategic alliance might adopt to enhance the transfer of knowledge and to cope with difficulties alliances might face Strategic alliances might face a number of difficulties. The first thing that comes out from the numerous literature on strategic alliance and knowledge sharing, is the fear of knowledge spillovers, that are assumed to be inevitable consequence of alliance involvement, despite the efforts companies make in order to protect their valuable knowledge assets (Inkpen, 2000). Therefore, it immediately comes to the issue of trust. In the late 90 a discussion was raised about the possibility that some firms use strategic alliance as a Trojan Horse in order to steal knowledge from its partners. This was especially thought about Japanese partners. However empirical studies do not find support for this hypothesis (Hennart et al. 1999; Mowery 1996). The literature elaborates on so called learning races (Khanna et al. 1998) when one partner (acts opportunistically) tries to gain more knowledge in the alliance exchange, than he shares. Hamel (1991, 86) described alliances as transitional devices where the primary objective was the internalization of partner skills. This creates a significant challenge for strategic alliance. To deal with with this issue, norms and systems can be designed; functional rules can be developed to structure partner engagement (QuÃÆ' ©lin, 1997). When little trust is involved, this may lead to knowledge protectiveness from one or both of the partners. Nielsen and Nielsen (2009) wrote that protectiveness not only may lead to uncertainty and conflict but it also reduces the amount of information exchanged.