2.4 The transfer of knowledge
Knowledge is not a physical entity but is instead intangible and it is largely transmitted during international strategic alliances. Whilst information and knowledge can be easily distorted, often through noise resulting from barriers to communication, the flow of knowledge is often facilitated by a wide range of factors including effective organisational communication, trust, and personal values. This facilitation of knowledge transfer is critical in guiding firm level and subsequent individual level interactions crucial to competitive success. However, in light of looking at knowledge transfers which are often intertwined with a discussion of spillover there is a need to think about the extent to which knowledge transfers and knowledge spillovers are different and therefore need to be treated as different constructs:
'While knowledge transfer involves the cross-party compensation of the value of the knowledge flowing between individuals or organizational units in a market-like transaction, knowledge spillovers relates to knowledge flows that are un- or undercompensated. That is, the recipient of the knowledge spillover is able to access the knowledge without completely paying for the value of the knowledge. Further, knowledge transfer may also (though not always) connote rivalness of use, while knowledge spillovers entails that the knowledge is simultaneously available to both parties' (Agarwal et al, 2008: 272).
Whilst knowledge transfers are often examined within organisations little attention is often directed towards the nature of knowledge transfers in strategic alliances and as a result there is a need to focus on this area for this study. As a result, emphasis must be placed on how a strategic alliance can improve their transfer or knowledge to exploit knowledge in an effective manner. Unexploited knowledge could, in this vein be considered a lost opportunity (Krylova, Vera, Crossan, 2016).
Alliances in themselves can be viewed as a critical source of external knowledge which can be accessed in order to obtain advantage. Alliances arise when an opportunity exists and one signal of opportunity can be underpinned by knowledge transfers and the value they yield. The learning opportunity that results from strategic alliances can then be used to promote an overall focus on dynamic interactions and competitive advantage.
2.5 International Strategic alliances: explore or exploit
Drawing on the knowledge based view of the firm, resources or capabilities may be shared in an alliance in order to reduce costs and associated risks (Qian & Qian, 2013). Across the international business literature, a great deal of attention is directed towards the motive for alliances stemming from this focus on access to resources and access to knowledge. In particular, as noted by Qian and Qian (2011) alliances may be the central strategy used in an attempt to mitigate environmental dynamism. More recently, in the work of Jiang et al (2016) knowledge flows in strategic alliances were examined from a contingency perspective which highlights the importance of knowledge acquisition in both types of alliance: those intended to explore opportunities and those intended to exploit. What runs throughout both is a focus on knowledge and the power of knowledge to facilitate opportunity (Jiang et al, 2016).
Two different motivations for carrying out an alliance are referred to in the international business literature. As noted by Yamakawa, Yang and Lin (2011) whilst strategic alliances are often positively related to firm performance, little is known about the conditions, which in particulate facilitate superior and long-standing competitive performance. In order to deal with increased uncertainty
