Knowledge exchange in improving strategic flexibility in an inter-organisational strategic alliance

Abstract

The financial environment within which organisations compete has fast become uncertain and dynamic due to rapid technological and operational changes. The challenges that organisations face today, and in the future, require them to pursue strategic initiatives by equipping themselves with the necessary knowledge to compete. Organisations have entered into inter-organisational strategic alliances to compete in this dynamic uncertain environment but more importantly they need to practice strategic flexibility to respond swiftly to environment changes and opportunities. This study explores how knowledge exchange can be used to improve strategic flexibility within an inter-organisational strategic alliances. A qualitative research was conducted based on 9 semi-structured interviews with senior leaders and executives in the financial environment of South Africa that are currently in an inter-organisational strategic alliance. The deductive approach applied NonakaÕs knowledge management model which is commonly adopted to improve knowledge exchange within an organisation. NonakaÕs Model has seldom been applied within the inter-organisational context and especially in the attempt to improve strategic flexibility. NonakaÕs Model explores the four different modes of knowledge exchange being socialisation, externalisation, combination and internalisation. These modes are conceptual in nature and therefore the gap of conceptual versus practical was explored in this study by attempting to identify underlying factors affecting knowledge exchange and further by suggesting improvements. The findings of the study highlighted trust, coordination, governance, interorganisational relationships and ease of business as the major themes influencing knowledge exchange impacting strategic flexibility within a strategic alliance. From a practical view, the Nonaka model was found to be an effective theory based tool to identify factors within these themes influencing knowledge exchange between partners within a strategic alliance and facilitate the attempt to improve them through the utilisation of the modelÕs four modes to increase strategic flexibility.