Competition for Competence and Inter-Partner Learning within International Strategic Alliances - Essay Example

A Review of "Competition for competence and inter-partner learning within international strategic alliances" (Hamel 1991) Name Instructor Course Institution Submission Date Introduction Hamel, G. 1991. Competition for competence and inter-partner learning within international strategic alliances. Strategic Management Journal, 12: 83-103 This is a business article based on global competition and learning between partners in international alliances. The research was conducted by Gary Hamel with the interest of providing a skill-based view of the firm with closer attention being paid to firms in the international market. A sample size of 74 individuals was selected across 11 companies concerning international alliances. Representatives from each company ranged between two to eleven. The eleven companies were located in different parts of the world, and each derived 30% of its revenue from outside the domestic markets. Four of the eleven companies were located in the United States, three in Japan and the other four were located within the European Community. This selection, therefore, makes the research pertinent to studies within the discipline of international business as it is of global representation and relevance. Prior to this study, it was clear to the author and others that discrepancies in skill endowments existed amongst the firms especially in regards to core competencies and value-creating disciplines. However, the researcher was not concerned with why such discrepancies exist, rather the concern was directed towards the role that international strategic alliances play in as far as effecting a partial redistribution of skills among partners is concerned (84). In this regard, the importance of the research question, "A skill-based view of the firm" (83) that had been posed is proven. The research article, "Competition for competence and inter-partner learning within international strategic alliances", maintains that there are significant asymmetries in the global competition in as far as skill endowments of firms are concerned. However, the article states that the various ways in which strategic alliances either diminish or develop the skills that underlie issues of global competitiveness have only been partially specified. For these reasons, the author set out to conduct this research with the goal being to understand the means through which as well as the extent to which the collaborative process might lead to a reapportionment of skills between the partners within the alliance (84). Further on, the research article argues that through collaboration, partners get a chance to internalize each other's skills and enhance their respective positions in the alliance better. The author goes deeper and provides the various determinants of learning amongst partners in an alliance. This research is compared and contrasted with other researchers and a clear discussion of how it challenges and complements previous works is laid out. In this case, the author discusses the ways in which this research differs or coincides with the findings, assumptions, and ideas of existing research literature. The intended audience of this article is the business partners in competitive or potentially competitive alliances. Individuals pursuing disciplines in International Business are also a relevant target. The purpose of this current paper is to provide a Review of Hamel's "Competition For Competence And Inter-Partner Learning Within International Strategic Alliances" (1991) Method The research design employed was based on the principles of grounded theory development. Interviews of a sample size of 74 individuals across 11 companies were conducted. According to this section, the research objective was theory development, not theory extension. Choice of the research design was controlled by three main parameters. The first parameter was a belief that the existing theoretical perspectives only shed light on a small part of the partnership phenomenon. Secondly, there was a desire to identify the determinants of inter-partner learning and thirdly, there was a desire to identify the consequent need for administratively fine-grained, longitudinal and multi-level observation. These three considerations are the reasons that made it inevitable for the researcher to choose a research design that was based on the principles of grounded theory development. Ground theory development was undertaken in two stages. The first stage's goal was to elucidate the fundamental dimensions of a theory of inter-partner learning and discover the universal theoretical categories or universal concepts. To achieve this target, comparison of data levels of similarity and divergence, as expressed in the data collected from the study sample, was carried out. The goal in the second stage was to provide a clear understanding of the process and mechanisms through which determinants of learning impact the learning outcomes in inter-partner learning. Theoretical sampling, a case-based research was used to accomplish the target. The two stages provided six major propositions in relation to learning in international alliances as discussed in the results section of this paper on page 6. The methodology and choice of the research design employed in the research article under review have its strengths and weakness. To start with the strengths, the research sample was well selected as it involved the managers mandated with the responsibility for strategic alliances from the business unit levels as well as the divisional levels. In addition, 40% of the study interviews were conducted with either functional supervisors or the first-line employees who worked across the collaborative membrane regularly (85). This is a strong point because it means that the concerns raised and data collected can be trusted as it comes from sources who have experience and knowledge regarding the issue under research. In addition, the sequence of methods is clear and pertinent. On the other hand, the research work suffers a number of limitations that are as a result of the choice of research design that the researcher opted to use. Among the limitations of the research, design is that the researcher is forced to de-clutter phenomena following the complexity of modern administrative systems and traditional deductive analytic methodologies. In this case, some of the multidimensionality in causal relationships are assumed away. Secondly Crude proxies are substituted for difficult-to-measure outcomes or determinants. Thirdly, the scope of the research is narrowed thus losing a lot of the research's potential value. This results in an under-developed theory. These limitations undermine the research's objective of "Theory Development" because although it may pass the test of rigor, it covers a narrow scope. Results Six major propositions in relation to learning in international alliances came up. The intent, receptivity, and transparency emerged as the determinants of learning among partners in alliances. In addition, issues of competitive collaboration, learning and bargaining power, and the determinants of sustainable learning were raised in relation to inter-partner learning. The results of the study hold some relevance because they confirm these concerns and anxiety raised by managers over asymmetric learning between partners. Each stage of the grounded theory development has specific results in as far as learning between individual partners or firms in alliances is concerned. The results are relevant and in line with the objectives and all that the research work set out to do. They are therefore used in the creation of a formal model proposing intent, receptivity and transparency as learning determinants in inter-partner alliances. In addition, the findings also indicate that inter-partner alliances are transitional devices. To prove the truth of this allegation, some excerpts from responses of individuals in alliances are provided. This therefore proves the truth and credibility of the reasons that make the researcher arrive at such a conclusion in regards to alliances. The core propositions of the developed Inter-Partner Theory are presented in the first table that provides summarized data in regards to the six propositions of the theory. A second table is also presented in which, relative power of partners in a triadic alliance is presented and ranked in the order of perceived importance as determinants of bargaining power The second table arises from the idea informing the finding that learning and bargaining power are significantly linked as was shown in several cases. In addition to the table presentation, excerpts from individuals' responses and views are provided to strengthen the validity of this finding. With this in mind, the findings can be held to be relevant and in accordance with the set goals and objectives. This is primarily because one of the aims of the research was to find theoretical foundations or concepts that were universal by checking out the concepts that were repeated in many cases. The link between learning and bargaining power emerges to be one of these concepts that the research seeks to find. A third table presents the inherent determinants of inter-partner learning where it gives a comparison of prototypes. In this table, factors associated with positive learning outcomes as well as those associated with negative learning outcomes are provided. In this case, the scientific principle requiring research studies not to be biased is adhered to. Discussion The discussion provided in the article is proper, and further develops the clarity of results. In this case, a clearer interpretation is provided, and it arises logically from the data presented in the research article. The article's discussion also employs and cites various research works that support the interpretation provided. In this regard, the research study clearly considers key studies in the related field. Moreover, the ways in which the research study under review complements or challenges prior research is discussed. However, too much attention has been directed towards the ways in which Hamel's "Competition for competence and inter-partner learning within international strategic alliances" (1991) collaborates with prior research. In this case, I feel that the ways in which the research challenges prior research has not been adequately discussed. More effort could have been put to elaborate to the reader, how this research poses a challenge and questions the existing notions held by other research works in the field Summary The title of the research paper "Competition for competence and inter-partner learning within international strategic alliances", is relevant, precise and in line with the objectives and findings of the study conducted. In addition, the statements and concerns raised and information provided are coherent to the purpose of the study. Hamel used companies from different parts of the world. This is good considering that the article is based on a global view and, therefore, this makes it relevant and increases the credibility of its global representation. In addition, the selected companies generated 30% of their revenues from the international market thus making them viable agents of study in international business aspects. A good research work should in addition to developing or increasing knowledge in a particular field, challenge or complement the existing research conducted by other researchers. It can also take both dimensions whereby, it challenges some research works and complements others. With this in consideration, the research by Gary Hamel therefore passes the test of a good research because it challenges and also complements previous research. In relation to the methodology, grounded theory development being conducted in two stages was a good step taken by the researcher. However, it has its limitations as outlined in the method section on page 4 of this current paper. These limitations may in one way affect the viability and level of which findings can be used to generalize for the larger scope. The results are properly tabulated and clearly illustrated. In the first table, a brief summary of each proposition is given whereas in the second table concerning learning and bargaining power, 'plus' signs are used to indicate the relative power gained by partners from each other within the respective joint ventures. The clarity and precision with which these findings are presented increases the credibility and applicability of this journal article It is therefore in order to conclude from this review that indeed, the research study has managed to comprehensively and academically prove what it was intended to prove. It informs the existing theories and can be used in future development and foundation of theories. All the goals, aims, and objectives have been justified and proven within the article. With all these unfolding and considerations, Competition for competence and inter-partner learning within international strategic alliances (Hamel 1991) improves the reader's knowledge in the Discipline of International Business. The article is thus relevant for individuals in firms or business alliances as well as for academic use and can therefore be used both as an a professional and academic guide. Reference Hamel, G. 1991. Competition for competence and inter-partner learning within international strategic alliances. Strategic Management Journal, 12: 83-103 Read More