Cognitive & Relational Distance in Alliance Networks: Evidence on the Knowledge Value Chain in the European ICT Sector
AbstractThis paper deals with the firms’ motives for entering into knowledge partnerships. We start by showing that networking strategies are designed to access external knowledge whilst maintaining at the same time a sufficient level of knowledge appropriation and tradability. The ICT sector (and interplaying ones) is particularly concerned by this accessibility/appropriation trade-off. The questions of modularity, complementarity, compatibility and standardisation are critical in the formation of corporate strategic and technological partnerships. Considering that knowledge in this sector is complex and systemic, we construct a theoretical typology of knowledge partnerships by crossing the levels of cognitive and relational proximity with the knowledge phases of exploration, examination and exploitation. This typology is then tested on empirical data through the use of a classification algorithm. The dataset is based on a sample of strategic alliances in the European ICT sector extracted from SDC Platinum. We show that strategic alliances are clustered in relation to the knowledge phases (exploration, examination, exploitation), and that the alliance categories are characterised by levels of relational and cognitive distance which actually are in keeping with the theoretical predictions.
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Bibliographic InfoPaper provided by Groupement de Recherches Economiques et Sociales in its series Cahiers du GRES with number 2007-18.
Date of creation: 2007
Date of revision:
knowledge networks; knowledge phases; proximities; strategic alliances; ICT sector;
Find related papers by JEL classification:
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
- L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-09-16 (All new papers)
- NEP-CBE-2007-09-16 (Cognitive & Behavioural Economics)
- NEP-CSE-2007-09-16 (Economics of Strategic Management)
- NEP-ICT-2007-09-16 (Information & Communication Technologies)
- NEP-INO-2007-09-16 (Innovation)
- NEP-IPR-2007-09-16 (Intellectual Property Rights)
- NEP-KNM-2007-09-16 (Knowledge Management & Knowledge Economy)
- NEP-NET-2007-09-16 (Network Economics)
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- Pierre-Alexandre Balland & Ron Boschma & Koen Frenken, 2013. "Proximity and Innovation: From Statics to Dynamics," Papers in Evolutionary Economic Geography (PEEG) 1314, Utrecht University, Section of Economic Geography, revised Aug 2013.
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