This paper reviews the literature on knowledge, transfer of knowledge and strategic alliances. Nowadays knowledge transfer within the firms becomes very important. It is crucial to understand what contributes to a successful knowledge transfer between companies as it directly affects the competitive advantage of the firms and their performance. This paper tries to analyze a knowledge transfer in the context of strategic alliances. The essence of this research is to find out how the knowledge can be transferred between the partners in the strategic alliances with the maximum effectiveness. In order to achieve this goal the determinants (including barriers) of knowledge transfer, specific features of alliances and behaviors enhancing knowledge transfer are determined.

Chapter 1: Introduction

1.1 Problem Indication

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 (O’Dell 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.

1.2. Problem statement

The problem indication brings us to delimitate the following area of research:

Successful knowledge transfer in a strategic alliance

1.3. 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?

1.4. 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, etc.

1.5. Thesis Structure

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. firm’s 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

2.1. 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).

2.2. Types of knowledge

Another approach to in