Scandinavian Working Papers in Business Administration

Working Papers,
Copenhagen Business School, Department of International Economics and Management

No 7-2001: The Role of Knowledge Embeddedness in the Process of Creation of Synergies in International Strategic Alliances

Bo Bernhard Nielsen
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Bo Bernhard Nielsen: Department of International Economics and Management, Copenhagen Business School, Postal: Department of International Economics and Management, Copenhagen Business School, Howitzvej 60, 2nd floor , DK-2200 Copenhagen N, Denmark

Abstract: This paper develops a conceptual model, based on a structural equation approach, for empirically investigating the role played by relational embeddedness in the process of creation of synergies of knowledge related capabilities in international strategic alliances. The theoretical model identifies an underlying latent construct; knowledge embeddedness and its antecedents: complementarity, compatibility, tacitness, trust, protectiveness, coordination, and cultural distance, which needs to be explicitly recognized and integrated in the theory of creation of synergies in international strategic alliances. While the individual importance of most of these variables has long been recognized in both strategic alliance and social exchange literature, their simultaneous effects have thus far been ignored. Embeddedness is hypothesized to be a full mediator of these effects on creation of synergies. Furthermore, alliance longevity, absorptive capacity, network capacity, and collaborative know-how are proposed to moderate these effects.

Keywords: Knowledge Management; Synergy; Strategic Alliances; Embeddedness

34 pages, June 11, 2001

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