This chapter examines how strategic alliances absorb, store and assimilate knowledge from their partner firms as well as how they update their own knowledge from the market where the strategic alliance operates. Organizational learning involves channels of knowledge acquisition through the management of an international strategic alliance. The formation of an international strategic alliance offers a novel learning experience that can provide a broad learning platform to allow access to knowledge about partner firms’ resources, knowledge and capabilities. In transition economies such as China, foreign firms normally invest in those items of technology and organization know-how that are perceived as vital resources and useful knowledge for operation of an international strategic alliance. It is important to assess the learning activities that must be conducted in an international strategic alliance, as this will enable a partner firm to decide ‘where’ and ‘how’ it delivers its resources, knowledge and capabilities to maximize the benefits in foreign trade, international investment and international production that it will receive from its investment.
KeywordsCorporate Governance Organizational Learning Foreign Firm Strategic Alliance Strategic Objective
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