How do Chinese firms use the knowledge obtained from international strategic alliances to strengthen their competitive position?
Summary and Structure
This chapter has introduced the concepts aligned to the research objectives and the specific research context within which this research exists: the challenging yet growing Chinese market. The next chapter presents a detailed and systematic examination of the literature drawing on the core theoretical and empirical foundations of the research: knowledge transfers, challenges and international strategic alliances in China. Relevant studies are critically analysed and used to guide and direct the empirical study. Reflecting upon the research context within which this study exists, emphasis is placed on studies from China where possible to further discuss the specific nature of strategic alliances in China and the potential challenges associated with this environment. Chapter three then moves on to present the methodology of the research collect empirical data using a mixed methods methodology. The justification and the details of the methodology employed are presented and discussed in detail. Chapter four then presents the data presentation and the analysis of the data and provides a series of descriptive statistics alongside a more thematic analysis approach. The final chapter then presents the conclusions, recommendations and areas of future research drawing out the central importance of the research presented.
2.0 Literature Review
2.1 Introduction
This chapter presents the theoretical basis for the research aligned to the research objectives presented in chapter one. This chapter introduces the key theoretical concepts and empirical studies that underpin the arena within which this research sits.
2.2 The meaning of knowledge
The crux of this exploratory research seeks to understand the extent to which knowledge transfers exist in strategic alliances and the extent to which these underpin competitive success. For this to be examined, the meaning of knowledge and the nature of knowledge transfers must first be understood. At a basic level, knowledge transfers refer to some exchange of knowledge, which may be either explicit or tacit which is used to enhance learning within the firm. Such knowledge transfers are increasingly positioned as being valuable as a result of their treatment as a capability allowing an organisation to achieve superiority if such a capability is achieved and then focused upon (Calvo-Mora et al, 2016; Suarez, Calvo-Mora & Roldan, 2016). Interpretations of knowledge are often generalised and thus can be interpreted as being ambiguous in tone. As a result discussions of knowledge tend to be coupled with terms such as understanding, experience, and intuition which although useful fail to appreciate the importance of context. Knowledge can take both implicit (also called tacit) forms which may be innate or based on the experience of an individual or it may take a more explicit form where information is depicted and translated easily. For knowledge transfers to promote a superiority and competitive advantage, tacit, implicit information is valuable, and this fundamentally resides within the individual (Rubenstein-Montano et al, 2001). As a result, a strategic alliance must be able to effectively capture tacit knowledge in order to maximise the benefits of the strategic decision.
An alliance is a 'partnership between two or more relatively independent organisations that are united to pursue some on-going activity or process' (Williamson, 1985: 14). Alliances are commonly used as a method of drawing out the value of interfirm cooperation in a manner that supports growth in particularly dynamic and changing markets. Once a firm forms an alliance, it may then be able to benefit from a range of opportunities which may not have been achievable on their own. Entrepreneurial opportunities, innovation and learning within an organisation all require a
