Population Problems in Bangladesh

[pic] Assignment On Population Problems in bangladesh Submitted To: Halimur R. khan, Ph. D. Professor FBA Eastern University Submitted By: Name |ID | |Dewan Abdullah |101200205 | |Jannatul Ferdaous |101200214 | |Tanzila Afrin | 101200004 | |Shahina Akter |101200211 | Faculty of Business Administration Submission: 11/05/2011 Terms of Reference May 11, 2011 Halimur R. khan,Ph. D. , Professor Faculty of Business Administration, Eastern University Sir, The report at your hand is on â€Å"population problem in Bangladesh†. You assign us to prepare this report as a part of the Business Communication (BUS-201) course requirement. While preparing this report, we have tried to follow your instructions given in the class.We believe our report contains information help us to make a clear recognize about â€Å"population problem in Bangladesh†. We really enjoyed doing such a challenging report. If you have further queries regarding this paper, we gladly remain stand by whenev er you ask for it. Finally, we are grateful to you for giving us a nice opportunity to work on this report, which we have considered as a great chance for us to develop our analytical skills. Sincerely yours, Dewan Abdullah Jannatul Ferdaous Tanzila Afrin Shahina Akter [pic] 1. Introduction: Today more than a billion people live in the areas richest in species diversity and the most threatened by human activities. The world’s population is now more than 6. billion and continues to grow by 83 million people per year. During the last half-century, the world’s population more than doubled. Between 1960 and 2010, the world population rose from 3 billion to 6. 8 billion. In other words, there has been more growth in population in the last fifty years than the previous 2 million years that humans have existed. Currently the rate of population increase is 1. 2% per year, which means the planet’s human population is on a trajectory to double again in 58 years. The plane t's major renewable natural resources—its fresh water, fisheries and forests—are already strained, and our atmosphere has been dramatically alter.Based on these trends, it is clear that the 21st century will witness even greater pressures on natural resources—with the poorest among us often paying the greatest price. Thomas Malthus believed that natural rates of human reproduction, when unchecked, would lead to geometric increases in population: population would grow in a ratio of 2, 4, 8, 16, 32, 64 and so on. However, he believed that food production increased only in arithmetic progression: 2, 4, 6, 8, 10. It seemed obvious to him that something had to keep the population in check to prevent wholesale starvation. He said that there were two general kinds of checks that limited population growth: preventative checks and positive checks. Preventative checks reduced the birth rate; positive checks increased the death rate.Despite sustained domestic and internati onal efforts to improve economic and demographic prospects, Bangladesh remains a developing nation, in part due to its large population. Its per capita income in 2006 was US$2300, compared to the world average of $10,200. Recent (2005–2007) estimates of Bangladesh's population range from 142 to 159 million, making it the 8th most populous nation in the world. With a land area of 143,998 square kilometers (55,600 square miles, ranked 94th), the population density is remarkable. A striking comparison is offered by the fact that Russia's population is only slightly smaller. Bangladesh boasts the highest population density in the world, excluding a handful of microstates.Bangladesh's population growth was among the highest in the world in the 1960s and 1970s, when the country grew from 50 to 90 million people, but with the promotion of birth control in the 1980s, the growth rate slowed. The total fertility rate is now 3. 1 children per woman, compared with 6. 2 three decades ago. The population is relatively young, with the 0–25 age group comprising 60%, while 3% are 65 or older. Bangladesh remains among the poorest nations in the world. Many people are landless and forced to live on and cultivate flood-prone land. Nearly half of the population lives on less than 1 US$ per day. BANGLADESH had one of the highest rates of population growth in the world. Bangladesh is among the poorest Asian countries. GNP per capita, now at $170, has grown very little since 1970 and is still among the lowest in the world.Rural people–90 percent of the population–have seen increasing landlessness and economic dislocation. Underemployment remains high. The overall literacy rate is 30 percent; for women, it is only 22 percent. The social status of the vast majority of women, bound by the restrictions of a patriarchal, traditional society, has changed little since Independence. Top 10 countries, based on population†¦Ã¢â‚¬ ¦ [pic] 2. State of the problems : It is alarming news. People in Bangladesh should now understand the reality of the problem. Population is growing, land for cultivation is sinking, climate change will create havoc for the country, there is excess in government expenditure for foreign trips and hosts of other problems are coming up.I heard the Prime Minister saying that she send the Bangladeshis abroad to solve the population problem. That sounded hollow to me. The government should have a viable policy of limiting population growth. This is a serious problem for Bangladesh. [pic] 2. 1 Environmental Issues: Many people are landless and forced to live on and cultivate flood-prone land; water-borne diseases prevalent in surface water; water pollution, especially of fishing areas, results from the use of commercial pesticides; ground water contaminated by naturally occurring arsenic; intermittent water shortages because of falling water tables in the northern and central parts of the country; soil degradation and er osion; deforestation; severe overpopulation. 2. Overpopulation Creates Traffic Jam: Traffic Jam is one of the most irritating problems in Bangladesh. Everyone feels it but none seems to think over this unhappy situation as prevails in Bangladesh. Communication is an important aspect of our day-to-day life. And as such, the bad effect of traffic jam can better be understood than described. So that, movements on the roads and streets must strictly be regulated by certain rules, which we call, traffic rules. Vehicles must keep to the left, obey speed limits and should avoid overtaking and follow the traffic signals. If these rules are followed strictly, the vehicles can go on smoothly without causing any traffic jam.But most often than not, there is glaring carelessness about these rules. As a result, the common people pay very dearly for it. People lose their time on their way for nothing. Sometimes we feel inclined to think that our government and the people at the helm of these affa irs are very indifferent to such vital problems. Something positive must be done to relieve the people from such problems. T[pic] The main reasons of traffic jam is overpopulation. 2. 3 Overpopulation Creates Load Shedding Load shedding occurs when generation of power is less than the demand and it creates problems of far reaching consequences in the economic and social development of the country.Mills and factories become idle, industrial production declines, workers are retrenched. Social order suffers a great damage. Students suffer in their study, straining their eyes in dim candle lights. The housewife gropes in the darkness in the kitchen. the shops have to close down. Men in the cinema halls spend hours in stuffy suffocation for failure of the supply of current. People return home after a day's hard work only to enter a dark den. The entire life-domestic and industrial comes to a standstill. Load shedding occurs when generation of power is less than the demand and it creates problems of far reaching consequences in the economic and social development of the country.Mills and factories become idle, industrial production declines, workers are retrenched. Social order suffers a great damage. Students suffer in their study, straining their eyes in dim candlelight. The housewife gropes in the darkness in the kitchen. The shops have to close down. Men in the cinema halls spend hours in stuffy suffocation for failure of the supply of current. People return home after a day's hard work only to enter a dark den. The entire life-domestic and industrial comes to a standstill. So that it says, demand of electricity is increase when population is rapidly increased day to day. 2. 4 Housing Problem Housing means providing our dwelling place.It is a problem because very little attention is paid to it. That housing is a problem must first be considered a great problem by the government as well as the conscious citizens. The employer must be compelled to provide proper a ccommodation facilities for their employees. The government may also impose suitable taxes on profit and utilize this income for the purpose of building accommodation for workers. The government should also make it a point to make the people in general conscious of the danger of unhygienic living. The picture shows that overpopulation creates both environment pollution & housing problem [pic] 2. 5 Educational problems Population problem creates educational problems too.It is an extraordinary job to get admission in schools, colleges and university. For twenty seats, there may be two thousand candidates. 6. Unemployment In the field of employment this condition is dangerous. For one single vacant post there will be thousand candidates. Thousands and thousands of people are out of work in the country. 2. 7 Sound pollution Among the many-side environmental pollutions, sound pollution is one of the serious problems. It has reached an alarming stage now-a-days. The quietness of our life has totally vanished. Even within our homes sound has been very common. Many are the causes of this problem of sound pollution. Microphones blare out day in and day out.Film songs are played on cassette recorders at top volume even from the wayside betel shops. There are the aggressive bullying horns of automobiles. During religious festivals crackers are burst in discriminately and as a result the lives of the children and the aged person become miserable. Shouting of slogans also contributes not a little to sound pollution. One can even come across slogan shouting in hospitals. The extent of sound pollution has already crossed the normal limits of human endurance. We have to pass strict laws to take effective steps against the misuse of microphones. So that, population problems creates sound pollution that is chasing us in almost every step of our life. 2. 8 Green House EffectThere are many causes of green house effect. The destruction and cutting down of tropical rain forests. Ve hicles that clog up city streets and rapid growth of population are the most effective causes of green house effect. All this reports provide strong evidence that world temperatures are increasing day by day; growth of population is the most effective causes of Green house effect. 2. 9 Overpopulation Can Increasing Air Pollution The city of Dhaka is the capital of Bangladesh. It faces a number of problems for overpopulation. Increasing air population is one of them. It is creating serious threat to health for the millions of the city dwellers.The root cause of this air-pollution in this city is the rise of population, unplanned industrial activities and growth motorizes vehicles. Then there are the auto-rickshaws, tempos, buses, mini bus and trucks. These vehicles discharge excessive amount of carbon in the air. It has been reported that at present 80 thousand cars, 40 thousand auto-rickshaws, 16 thousand trucks, 1500 buses and 22,500 other vehicles are operating in the Dhaka Metrop olitan area. Then there are also a good number of vehicles coming in and going out from the city every day. In the context of this situation, necessary measures for control of air-pollution should situation. Necessary measures for control of air-pollution should be taken jointly by the government and the city dwellers. 2. 0 Food problem Population in Bangladesh is increasing by geometrical progression. But the agricultural production is increasing by arithmetical progression. The production of food cannot keep pace with our increasing people. So there is the shortage of food in our country. Every year a large quantity of food is to be imported from abroad. 2. 11 Health problem â€Å"Health is wealth†, but our people are suffering from many diseases. Many children of our country are blind because they do not get enough nutrition. Our children often suffer in diarrhea. 2. 12 Medical and medicine problem The large number of population creates the treatment problems too.There is only one qualified doctor for every 25,000 village people on the average. They also do not get proper and sufficient medicine. 2. 13 Shelter Problems The area of Bangladesh is too small to arrange shelter for the large number of population. In our country some people sleep under the porn sky, under the large tree, at railway station. This cause creates only for the population problems. 2. 14 Poverty Overpopulation is a cause of poverty. The increasing population of our country is creating pressure to our wealth. Our wealth is limited. So day by day we become poor. In this picture the little poor boy is working to earn money for food. Overpopulation increases food problem & poverty [pic] 3.Reasons of population problems in Bangladesh: Population growth is not the only threat facing humanity, but it will be a major contributor to the crises that await us and the planet in the coming century. Overpopulating the planet puts us all at risk of extreme environmental and social consequences that we are beginning to witness today. Beyond the dour environmental implications of current and future global population growth, there is a human tragedy in process as well. When we look forward to the next 40 years, the most significant population increases will take place in the areas of our world where natural resources and the infrastructure of modernity are already the scarcest.Ninety-five percent of human population growth is occurring in countries already struggling with poverty, illiteracy and civil unrest. In fact, developing countries are in need of approximately $1 trillion per year in new infrastructure (school rooms, for example) to accommodate the dramatic increases to their populations. This figure is effectively impossible to meet, which means the continued expansion of human population will result in an increase in the number of people living in poverty, unemployment and with inadequate health care. 3. 1 Hypothesis: †¢ Lack of awareness: Lack of awareness is the burning issue of increasing population. It is the root of all problems.Gender discrimination: There is a traditional view of having a male child. Parents thought that if they have a male child they will support them economically when they are able to earn. Parents specially take care of a male child than female one. So they try to have more and more male child. This practice is increasing the member of the family as well as the whole country. This situation is mostly seen in rural villages and in slum areas. †¢ Early marriage: Another main reason of population problem is early marriage of girls who are under 18. Poor parents are mainly interested in early marriage. Having daughter is a burden to them so they try to get them married early. Lack of education: The quality of education in remote rural areas was far worse than in urban areas, largely due to a scarcity of English teachers and the predominance of religious schools (‘madrasas') where English is not taught, t he study said. Our kids are falling behind in many areas of intellectual achievement. The whimsical decision of the government not to promote teachers without certain qualifications is further worsening in this situation. Sixty-nine percent of students who had completed five years of primary school were unable to read news headlines in Bangla newspapers properly, while 87 percent of pupils failed to do simple mathematical calculations, the study, entitled National Assessment of Pupils of Grades Three and Five – 2006, said.Conducted by the Second Primary Education Development Programmer (PEDP-II) – a donor-assisted programmer to ensure quality primary education for all children – the study reported that 72 percent of children were unable to write a short composition in Bangla – the mother tongue of over 95 percent of the population. 2. Some other reasons are given below: †¢ There is not enough food to feed a growing population. †¢ There is not a stable enough economy to give jobs or a decent standard of living to the current population, much less a growing one. †¢ Consumption of Resources for the current population already out weights the planet's capacity. †¢ Pollution by the current population is heavy, and would be worsened by a greater population. †¢ Education is best given individually, and the system is stressed when more students are added. 4.Solutions to the population problems in Bangladesh: We should all come forward to control the population. The government of Bangladesh is trying to control it. To remove this problem we should following arrangement: †¢ Using contraception: There are many choices to make about whether or not to use contraception and what method to use if you want to avoid a pregnancy. Contraceptive methods include the use of hormones, intrauterine devices (IUDs), and barrier and natural methods. People choose to use contraceptives (birth control) for a variety of reasons. Choo sing the birth control that is right for you is a personal decision and should be an informed one. You may have decided that you don’t wish to have children or would love them – just at a later point in your life. ? You may choose to use birth control to help space the timing of the births of your children. ? You may be feeling like your family is complete, so you wish to guard against the possibility of becoming pregnant again. Because we are all individuals and have our own unique needs, so too, we may prefer a particular contraceptive method over another – depending on our sexual, moral, or reproductive needs. †¢ Birth control: Birth control is an umbrella term for several techniques and methods used to prevent fertilization or to interrupt pregnancy at various stages.Birth control techniques and methods include contraception (the prevention of fertilization), contraception (preventing the implantation of the blast cyst) and abortion (the removal or expu lsion of a fetus or embryo from the uterus). Contraception includes barrier methods, such as condoms or diaphragm, hormonal contraception, also known as oral contraception, and inject able contraceptives. [1] Contraceptives, also known as post-coital birth control, include intrauterine devices and what is known as the morning after pill. †¢ Mass education: There is a famous saying in Bangladesh: â€Å"Lekha pora kore Je Gari Gora chore se† (Those who are educated will succeed).This traditional thinking of education as the ticket to the good life emerges in different ways and degrees in Bangladesh. Education is seen as something that is received rather than achieved and it has increasingly become dependent on certificates. †¢ Stop early marriage: Education is the most important key to helping end the practice of forced child marriages. Many believe that education may prove to be more successful in preventing child marriages than banning child marriages. Education of the parents is just as important as education of the children. Education will broaden their horizons and will help convince parents of the benefits in having their children educated. It is important to provide education involving more than reading, writing, and math.Teaching these young girls life skills, including reproduction and contraception information, how to have fun and how to play in sports, is proving to be a positive way to change the lives and futures of these adolescent girls. †¢ Stop early pregnancy: Early marriage is mostly seen in village. This problem is increasing rapidly because those people don’t have awareness. To solve this problem the mother have to wait at least 18 years old before trying to have children improves maternal and child health. Also, if additional children are desired after a child is born; it is healthier for the mother and the child to wait at least 2 years after the previous birth before attempting to conceive but not more than 5 y ears. 5. Conclusion: Population pyramids, or age-sex pyramids, graphically depict the distribution of a country’s population based on age and gender.A top-heavy pyramid represents a country with an aging population that is failing to replace itself. Contrarily, a bottom-heavy pyramid represents a country with a rapid growth rate. Furthermore, indentations and spikes represent natural, environmental, and human phenomena that have affected population growth over time. Causes of these reductions and booms in population are natural disasters, famine, wars, postwar eras, increase in level of healthcare, and baby boom eras. The population is a great malady for Bangladesh. But this can be solved if the government and the people are firmly determined to control birth rate and grow more food at the same time. No improvement is possible unless this problem to solve†¦. [pic][pic][pic]

Employment Relations Essay

Introduction: This essay will discuss the two different management approaches towards to the recent industrial action taken against Lend Lease and identify what differentiate the two approaches. The second part of the essay will provide an argument of how applying these approaches from the upper management could potentially change the outcome of the industrial action against Lend Lease. Body: Pluralist approach: The characteristic of pluralist approach is to satisfy various interests and aspirations within their employees. The organization power was diffused among the main negotiating groups within the company in such a way that no any party will dominate others. Pluralism approach is open about employment relationships as it allows the creation of a potential structural opposition to be raised, as well as allows the workplace to generate certain conflicts with the organization. By doing so, it will prevent public interest conflict as well as to suppress the inappropriate use of power from the upper management. However, the weakness of pluralist approach is that it relies on the negotiation and bargaining process when there are disputes incurred between the management and the workforce, if in the event of the dispute cannot be resolved it will resorts to the use of law. Management in pluralist approach should not prohibit any ideas or expectations of blind obedience from the employees. Their goal is to reconcile conflicting views and keep the conflict within an acceptable range, so the conflict does not destroy the organization. Unitarist approach: The characteristic of unitarist approach are regarded that the whole organization shares a common purpose and are united in the achievement of common goal. The role of management in unitarist approach has the ability to provide leadership and expected to have good communications, while employees should be loyal to the organization and to carry out the work organised by management as directed. Worker Unions are considered competitive and is believed to destroy the loyalty and the commitments of the employees hence it is not welcomed by the managements. However, the weakness of unitarist approach is that it fails to recognise the needs of different interests between employees, and assumed that decisions made by managements are rational and contain within the interest of all employees. Unitarist approach believes that conflicts in the workplace is not inherent, in fact, it is a communication failure between the organization and the employees. For example, on the 24th July, the workers for Lend Lease has decided to walk off the site and start the 48 hours strike after the breakdown in the negosiation of better pay and condition. This shows that the employees are not accepting how the management’s lack of awareness of their needs. On the 25th July, ACTU published a media release stating the issues between Lend Lease and its employees, and suggested that Lend Lease should consider a fair working environment and pay for its contractors and sub-contractors, given that Lend Lease has made almost half a million worth of profits last year but failed to provide a fair working condition to its workers. This media release shows that the Union are trying to attract social awareness by publishing public release and in the hope of forcing Lend Lease to re-negotiate their terms. On the 27th July, CFMEU has escalated the issue to a national level and the Union has set up a picket at the Barangaroo construction site. This action has caused Lend lease sites in lockdown across the country, as stated by one of the employee Brain Parker â€Å"The company is not currently bargaining in good faith† The above event shows that if Lend Lease has followed the pluralist approach, the action may be able to be under control as Lend Lease will act by considering the words and the issues rose between the management and the employees and can act accordingly to the issue. However, according to the examples shown, Lend Lease seems to have been following the unitarist approach which has in fact, escalated the conflicts between the management and their employees as shown in the article published by green Left. The article mentioned that Lend Lease did not made a sincere approach to the negotiation and offered something that the Union consider as â€Å"a joke† which did not loosen the tension but added more stress on top of it. Identify which one of the approaches provides the better explanation. Explain your reasoning. Based on the industrial action that has been taken against Lend Lease, it shows that Lend Lease was first using the Unitarist approach to their employees by not willing to negotiate with their new proposal. This has than created an enormous negative impact on both the social and the company as the projects were likely being delayed due to the industrial actions. Conclusion: In conclusion, Lend Lease would have been able to avoid the industrial actions by having a dynamic management approach on their worker base on different situation. This essay shows how in appropriate management style could create such impact on both the social media and the company itself.

Louis Riel Essay (Canadian History) Essay

In my opinion Louis Riel was a hero because he fought for the rights of everyone who lived in the northwest, he was rebelling against a government, not a country and he was against acts of violence and loss of life. Furthermore Louis’s acts might be considered crazy by today’s standards but in the 1890’s it was not uncommon or insane. Louis lived in the Red River settlement and wanted to protect their rights but he also fought for the rights of the white settlers in the area and for the natives. Louis was a patriot, he was proud to be Canadian, he just didn’t agree with the government at the time. Louis Riel was a freedom fighter, not a rebel against his country. He was rebelling against the men in government who suppressed his people. â€Å"The entire process which saw the spread of the Canadian Governments imperialistic authority over the west, ignored the people who were there long before England decided to give it to a new country. Riel was a freedom fighter for the west and should be recognized as such. He faced and fought a central Canadian government, ignorant of the west, long before Preston Manning was born.† (Richard Brown, Alberta, July 7th, 1999 http://www.metisresourcecentre.mb.ca/quotes/). If Louis hadn’t stood up for the Meti people, the government would have let them starve and their culture would be lost. Likewise if any minority was treated like that now, they could only be so fortunate to have someone like Louis Riel to stand up for them. Louis was against violence unless it was absolutely necessary. He only wanted to ensure that the people of the Northwest would retain their rights and traditions after the Canadian government took control of the area. When he and his Mati people used violence it was because they had no other options. â€Å"John A MacDonald breaks the law of the time by inducing rebellion.† (Sir Wilfred Laurier http://www.metisresourcecentre.mb.ca/quotes/). Two examples of Riel using non-violent solutions first are when he sent Meti to confront the land surveyors instead of sending them to kill the surveyors. And when he seized fort Garry and its munitions, instead of burning it down or shooting the people inside. His method of not being vicious helped him be victorious in many situations. â€Å"You can be sure that we would have beaten  them had it not been for Louis Riel who always counseled us not to spill their blood† Gabriel Dumont. Today, if someone came up to you and said they were chosen by god to lead their people to freedom would you believe them or laugh and call them insane? Chances are most modern people would do the laughing. But in the 1880’s things were different, people were more religious and it was less than impossible to voice your opinions to the government. Riel lived in a time when the country was still being shaped, new provinces were being formed, and he was not out of line to demand that his people be included. Today we have a responsible government, for example when native people in BC felt cheated out of their ancestors land, our government gave some of the land back and took steps to see that that doesn’t happen again. Ironically this is the same land the post-confederation government took away! When you look at all the facts and consider the time period, Riel doesn’t seem like such a bad guy. He did what any patriotic, freedom loving Canadian would have done in his shoes. Sure some of his beliefs and ideas may have been a little deranged, but when you compare it to all the exemplary things he accomplished, it dosent seam like a big deal. â€Å"I am more convinced everyday that without a single exception I did right†¦ and I have always believed that, as I have acted honestly, the time will come when the people of Canada will see and acknowledge it.† (Louis Riel http://www.metisresourcecentre.mb.ca/quotes/) Maybe it wouldn’t be so bad if some of our modern politicians were a little more like Louis Riel.

Bioinformatics Lab Report Example | Topics and Well Written Essays - 250 words

Bioinformatics - Lab Report Example After conducting a blast p search, I chose the following proteins EFR29682.1 a hypothetical protein from Anopheles darlingi it had an E value of 10. This protein is not in any way related to Down syndrome. This is a protein from mosquito saliva and matches by chance. This E value is high; its significance is low in relation to Down syndrome (Pevsner 7). Protein 2 is EGW12244.1 known as Down syndrome critical region protein 3–like from Chinese hamster (Cricetulus griseus). This protein has an E value of 1 and is related to Down syndrome since the E value is very low. The hamster genome is similar to the human genome (Pevsner 15). Protein 3 was XP_002122877 with an E value of 0.4 it is a protein predicted to be similar to Down syndrome critical region protein 3 (Down syndrome critical region protein A). It is a protein from Ciona intestinalis, an invertebrate that is closest to humans and shares 80 % of the genome. It has very high significance in the study of Down

Organizational behavior (research analysis) Assignment - 2

Organizational behavior (research analysis) - Assignment Example To ensure that all the employees are up to date with the company values, I would organize annual events whereby the employees will be reminded on the core company values. Internal conflict resolution has been found to be more effective as compared to external methods such as courts. To come up with a good conflict resolution strategy, I would seek the opinion of the employees on workplace conflict guidelines. Conflict resolution should begin at the departmental level so that small disputes are handled before they blow up (Taylor, Rebekah, and Pamela 24). Every department should have a conflict mediator who will be trained on conflict mediation. Although training would be expensive in the short-term as compared to hiring mediators, it will be worth the cost since no new wages will be incurred in the future. Department managers will be trained as conflict mediators. Integration of management skills and conflict mediation will help solve conflicts wisely. Ineffective communication problems are bound to cause havoc in a working environment. As the new manager, I will ensure that communication channels are effective so as to avoid misunderstanding. The structure of the organization will be altered so that communication will be easier. Every department head will communicate directly to a central manager whose main function will be coordinating the different departments. The central manager will pass information from department to department and hence no cases of departmental misunderstanding will arise. According to Taylor, improper communication in departments is the root cause of conflicts in organizations (Taylor, Rebekah, and Pamela 56). He argues that a central communication point helps solve communication problems. Fair evaluation is defined as the process of determining an individual’s job-related actions without favoring or discriminating them. Fair evaluation also means that the employee’s

Global operation and competition study of GlaxoSmithKline plc 181 Essay

Global operation and competition study of GlaxoSmithKline plc 181 - Essay Example Having over 99,000 employees, one unique feature of GSK is that fact that it came into existence only in 2000 through the measure of Glaxo Wellcome, SmithKline Beecham plc and SmithKline Beckman Corporation (quote). The table below outlines GSK’s key financials since 2009. There are a number of reasons that the pharmaceutical industry and GlaxoSmithKline were selected very specifically. In the first place, the selection of the pharmaceutical is based on the very favourable growth projections that have been made for the industry from now till 2018. MarketLine (2013) forecasted that by 2018, the industry will have a value of  £646.8699 billion, which is an increase of 26.8% since 2013 (see the figure below). This is an important projection that means that the pharmaceutical industry will be a major drive in global economic expansion. The rationale for selection is therefore based on the global economic hope that this unique industry gives. GlaxoSmithKline plc was on the other hand selected as a leader in the UK pharmaceutical industry to know how prepared the UK industry is to compete to be part of the global growth. Compared to its major competitors, GlaxoSmithKline has not been able to command a leading market capital for the past five years. This is regardless of the fact that compared to key competitors GlaxoSmithKline has a very large employee size. As showed in the table below also, GlaxoSmithKline has a very good gross margin but with the lowest revenue quarterly growth (quote). All these information shows that there are some fundamental causes to the company’s competitive position other than most of the internal factor that come from the everyday management of the organization. The aim of the research is therefore to understand how the external environment of the company impacts on its global operation and competition. The project shall be approached as a qualitative correlational study where GSK shall be compared to its major competitors to find

Social Engineering and the Law Essay Example | Topics and Well Written Essays - 750 words

Social Engineering and the Law - Essay Example But for every good example there are likely to be bad ones. In Canada, the government used to take away Native children from their families and educate them in residential schools. The idea was to try to acculturate the children by teaching them better English and making it easier for them to be absorbed into the White population. Instead of working, this example of social engineering created a lot of unhappiness and misery. The government has since apologized for its policy which is widely seen as a failure. Part of the problem is that a law is a very broad thing and it is hard to account for individual differences when you plan to change people’s behavior. It is a bit like trying to perform surgery with a sledge hammer. Nevertheless politicians continue to push for social engineering because the idea is often popular at first blush. Currently one of Nancy Pelosi and Harry Reid’s big ideas is to introduce a Fairness Doctrine as law.1 This would make it legally necessary for radio stations to have an equal amount of political time for each side of the political spectrum—instead of just putting on shows that people or the market want. If this law comes into effect it may make people more left-wing (as a lot of talk radio is now conservative). This might be a smart political move: socially engineering more Democratic voters would result in larger majorities in the House and Senate! Usually politics is at the heart of plans to change people’s behavior en masse. Although I do not generally like the idea of social engineering, as you may observe from my above statements, if I were told I could socially engineer anything I would think long and hard. One of the ways many politicians try to alter behavior is by changing the tax rates. If I could do anything I would implement a law creating a flat tax. The current tax system is called a â€Å"progressive† system. The more money that you make the more tax you must pay. On the face of it

Meat Industry in Kenya Research Paper Example | Topics and Well Written Essays - 1500 words

Meat Industry in Kenya - Research Paper Example The livestock marketing council found in Kenya is a private entity that plays the role of advocating for the rights of livestock traders and assists them in marketing of their products. The banks found in Kenya provide individuals and organizations with agricultural loans to boost their agricultural undertakings including livestock keeping and trading in livestock. The government of Kenya runs the management of the public body that has monopolized the meat processing sector in Kenya. This includes provision of financial support for this corporation. Most of the privately owned firms dealing with livestock and livestock products are privately run. The management of such firms supports them financially and ensure that they are run in the desired way (Ngugi 2001pp52-63). Social and cultural factors affecting the meat industry in Kenya Most of the societies living in Kenya place no restrictions to consumption of meat with the very insignificant exemption of the Indians living in this country. This therefore means that the meat industry sells most of its products to the Kenyan local community. Most of the Kenyan communities value red meat and incorporates its consumption in many of their cultural ceremonies including weddings, initiation and even burial ceremonies. This has a positive impact to the meat industry due to the large public meat consumption during the ceremonies. Kenyan communities are further divided into subcultures which hold a number of social gatherings to deliberate on issues affecting them. Most of these subcultures normally take the red meat as the main diet served during such gatherings. An infamous group that dotes on red meat when holding its social gatherings is the 'Mungiki'. Technological factors affecting meat... The paper describes the determinants of demand for meat in Kenya. The price at which meat is sold determines the demand for it. When the price of meat goes up, fewer individuals will be willing to buy it. They feel like buying the meat at a higher price takes most of the money at their disposal away. Locals prefer to buy foods that can be supplemented with meat like beans or lentils for the provision of proteins in the body. This idea is mostly influenced by an increase in the price of the meat, which makes them reluctant to buy the expensive meat and prefer cheap protein supplements. When meat substitutes cost less than the meat itself, the local demand for meat shifts to the ‘more affordable’ substitutes. The Kenyan locals for example prefer to take fish or animal organs like the intestines, kidney or liver which costs less than the meat itself. The income levels also determine meat consumption within the local Kenyan setting. With most of the households leading a poor life, meat is commonly viewed as a luxury for the rich. Hence, the humble households consume meat less while the rich ones consume meat very frequently. The above characterizes the consumption of meat within social, geographical or even cultural levels. Since meat costs much higher than most other sources of income, those people living in areas where income is high will buy more meat than those areas where income is low. Thus, the Kenyan suburbs records high meat intake, than the slums.

Water Desalination using Vacuum Membrane Distillation Essay

Water Desalination using Vacuum Membrane Distillation - Essay Example Of course, it can also be used for water desalination [5]. Vapor migrates from the membrane surface to the permeate side. How this process occurs varies with the different configurations, depending on the feed solution which is treated [3, 11, 16]. All the configurations have advantages and disadvantages, depending on their applications. In Direct Contact Membrane Distillation, for instance, the membrane is in direct contact with the water only during liquid phases. According to classical heat transfer theory, a thermal boundary is formed when liquid is in direct contact with a solid surface when their temperatures differ. This thermal boundary stays next to the solid surface, where the liquid exhibits its temperature fluctuations. The process of heat and mass transfer illustrates the membrane distillation process, wherein a microporous membrane separates two fluids of differing temperatures (membrane thickness of). The feed temperature decreases from at its bulk to at the membrane’s surface. Accordingly, the permeate temperature increases from at its bulk to at the membrane’s surface. Two thermal boundary layers appear at the feed side (with the thickness of) and the permeate side (with the thickness of) of the membrane respectively, as shown in Fig. 3. where is the mass transfer flux through the membrane and is the latent heat of the volatile component. Here, is only a small part of the energy transferred through the membrane in the form of latent heat. The temperature difference between the two sides of the membrane also conducts heat through the membrane and the gas that fills the pores with flux, written as The equation illustrates the temperature difference between the two sides of the hydrophobic membrane. Accounting for the vapor pressure difference is illustrated by, which is the driving force for mass transfer through the membrane. Three mechanisms regulate the mass transfer through the membrane: The mass transfer mechanism

Statistics - P-Values versus Critical Values Essay

Statistics - P-Values versus Critical Values - Essay Example However, if the calculated value is less than the critical value, the null hypothesis is accepted and the alternative hypothesis is rejected. The advantage of this method is that it helps define the rejection region in terms of the sample mean and therefore if the same experiment is repeated many times in the field, one can draw the conclusion of the hypothesis test right then without having to make any other calculations (Statistics Glossary, para 22). The disadvantage of this method is that one is stuck with a fixed level for the test. The probability value or p-value method is a measure of how likely the sample results are, assuming the null hypothesis is true. Small p-values suggest that the null hypothesis is unlikely to be true. The smaller the p-value, the more convincing is the rejection of the null hypothesis. The advantage of this method is that, by reporting the p-value one allows the reader to decide if the result is significant or not (Statistics Glossary, para 26). For e.g., one might think that the 5% level of significance is good while the reader may prefer 2% level of significance. Therefore, the p-value allows the reader to draw their own conclusions. The disadvantage of this method is that one can’t make quick conclusions based on just the sample values as can be done in the critical value method.

Business Strategy and Decision Making Essay Example | Topics and Well Written Essays - 2000 words

Business Strategy and Decision Making - Essay Example The practice of an effective strategic management approach helps to conserve continuous refurbishment and expansion of the organisations to proactively deal with a number of potential challenges. Moreover, it also provides adequate support to the leaders to enhance their potentials in decision making process and improve organisations’ credibility within a competitive business market (Hill & Jones, 2011). Emphasising the emerging trend of strategic management processes, the study intends to focus on critically discussing different competitive strategic approaches that enable the organisations to maintain long-term sustainability. In this regard, the discussion of this study represents widely accepted strategic approaches of the modern organisations along with their roles and significance towards helping the leaders to improve their decision making processes. Moreover, the discussion would also incorporate real-world examples of major organisations from different business industry perspectives. In relation to the unconventional trends currently witnessed in the business environment, it has been observed that modern organisations commonly seek to develop advanced strategies and focus on the effective adoption of rational and integrated business steps with the intention to remain sustainable in their respective field of operations for a long-term period. With regard to the changing scenario along with fierce competitive trend currently witnessed in today’s global business environment, the notion of intended and emergent business strategies has evolved as a commonly debated issue (Mintzberg & Waters, 1985). According to the modern phenomenon of the global business environment, there are a number of strategic management approaches that are highly practiced by the organisations to gain competitive advantage over their rivals. In

Economic and Financial Committee Essay Example for Free

Economic and Financial Committee Essay This letter is to address the widening gap between the rich and poor in developing nations, and how globalization policies create a situation that lessens that gap. In many developing countries there is simply a poor class and a rich class. Developed nations are characterized by the presence of a middle class. The middle class bridges the gap between rich and poor, and when developing nations can create a fully functioning middle class within their societies, the contrasts between rich and poor seem to deplete. In a viewpoint essay edited by Debra Miller (2008) entitled â€Å"Globalization Promotes Democracy Both Directly and Indirectly† this concept is demonstrated. The premise of the article is that globalization efforts create an economic and entrepreneurial middle class who then demand and facilitate democratization in developing countries. As a matter of policy, economic reform, through globalization, should precede democratization. For example glasnost in Russia, or democracy and freedom before economic reform, proved to be unsuccessful. While in China economic reform before political change has proven to be an effective policy. The conclusions of Jagdish Bhagwati, Columbia University economics professor and U. N. advisor, demonstrate the process of bridging the economic and class gap. A small farmer in India used the internet to take his crops to both local and international markets. This tool of globalization gave him the freedom to control prices, as well as supply and demand. This increased economic independence and experience of personal control often translates into political aspirations that eventually lead to policies that bridge the economic gap in such countries. The internet is just one tool of globalization. As your committee examines the conditions and policies of other developing nations, it is imperative that you consider the process of globalization that leads to economic reform that leads to democracy. Policies and initiatives must focus on supplying developing nations with the tools of globalization, particularly access to international trade opportunities, that have a direct impact on the individual’s economic and financial situations. As these individuals transform into an economic middle class, they will take action in the social and political affairs in their nations that will, in turn, create a more democratic society that will provide better economic opportunities for all citizens. Reference Globalization Promotes Democracy Both Directly and Indirectly. (2007). In Debra Miller Current Controversies: Globalization(). Detroit: Greenhaven Press. 5 May 2008, Opposing Viewpoints Resource Center via Gale: http://find. galegroup. com/ips/start. do? prodId=IPS Respectfully Submitted,

Determinants in the Process of Knowledge Transfer

Determinants in the Process of Knowledge Transfer Knowledge was closely investigated by academic researchers for the last few decades. It is nowadays considered as one of the most important strategic assets (Winter, 1987) that contribute to the competitive advantage of the firms (Kogut and Zander, 1992); this perspective is associated with the knowledge-based view (Grant, 1996). Resulting from that numerous studies exist about knowledge. As Winter (1987) suggests, knowledge can be created, stored and transmitted (transferred), exploited and the ability to success in these activities represents the essence of the firm. Different studies consider these various stages. However, the process of transfer is very interesting to reflect on because it is precisely knowledge transfer that has been established by several academics as having a major impact on performance (Cohen and Levinthal, 1990; Osterloh and Frey 2000). Some literature analyzes the process of knowledge transfer itself (ODell and Grayson, 1998; Szulanski, 2000), and its determinants (Grant and Baden- Fuller, 2000), other its boundaries (Szulanski, 1996; Salk, 1996; Hennart et al. 1999; Dyer and Hatch, 2006; Heiman and Nickerson, 2004). Together the authors try to shed light on the stages of knowledge transfer and factors that can positively or negatively contribute to it. Despite the abundance of studies, some researchers like Wagner (2005) call for the investigation of soft issues such as absorptive capacity and culture in successful knowledge sharing. Moreover, different researchers (Inkpen, 2000; Mowery et al. 1996), studied knowledge in the context of a strategic alliance. Some studies convey the idea that this might be the most appropriate form of collaboration in order to share (transfer) knowledge because of several advantages (Grant and Baden-Fuller, 2004). Other academics, as Simonin (1999), define difficulties that alliances face in the process of knowledge transfer. Therefore it might be useful to combine these ideas and see what makes alliances being so unique and how knowledge can be transferred in these structures. This literature review is meant to integrate various studies to make a clear picture of what makes the transfer of knowledge successful in-between partners of strategic alliance by reviewing determinants of knowledge transfer, particularities of alliances and possible strategies to follow in order to achieve the transfer. Problem statement The problem indication brings us to delimitate the following area of research: Successful knowledge transfer in a strategic alliance Research Questions Since knowledge becomes an essential asset, and its manipulation might have strong impact on the wellbeing and performance of the firm, it is interesting to investigate the knowledge transfer. Our inquiry will be done by first looking at what is knowledge and its different kinds. Then the models of knowledge transfer (in general) will be considered to see how knowledge is shared, finishing with the factors that can impact positively or negatively (barriers) on this process, this includes the soft issues sited previously. Research question 1: What are the key determinants in the process of knowledge transfer? Strategic alliances are often used by firms to transfer knowledge. Several studies might convey the idea that alliances is the most appropriate form of cooperation in order to transfer knowledge, that is why in the second research question we are going to discuss characteristics and particularities of alliances that contribute to build a solid ground for knowledge transfer. Research question 2: What characteristics and particularities of the strategic alliance might shape the process of knowledge transfer in this form of cooperation? Perhaps the most practical issue for organizations involved in the process of knowledge transfer within a strategic alliance is the one that deals with practices to implement and strategies to follow for both partners. Therefore the third research question will deal with possible behavior and ways of doing that can facilitate the knowledge transfer within a strategic alliance. Research question3: What strategies and behavior could the parties of the strategic alliance adopt  (implement) to enhance the transfer of knowledge and cope with the difficulties alliance might face? Research methods This is a descriptive research that will be done in the form of literature review. The data sources are the existing academic literature in the field of management, strategy and organization science. The literature includes top journals such as Journal of Management Studies, Strategic Management Journal, Knowledge and Process Management, Academy of Management Journal Structure of the thesis In the second chapter the investigation will be done in order to gain knowledge of what could be the determinants of the knowledge transfer in general (without considering the context of the strategic alliances). To do this, first of all, knowledge and its different kinds have to be defined. Following that the review of the literature about the process of knowledge transfer itself will be made. Chapter 2 will end with the review of possible factors that can affect the process by whether contributing to its success or by creating barriers to it. In the third chapter we are going to take a closer look on the strategic alliances. Following the definition, the discussion will pursue in order to understand why certain researchers think that strategic alliances are the most appropriate form of collaboration between firms for the process of knowledge transfer. Moreover, in this chapter we are going to look if certain characteristics of the alliance can ameliorate the transfer (i.e. firms similarities, orientation, strategy, resources). The last research question will be answered in the fourth chapter by examining the possible strategies and behaviors that companies involved in the alliance could undertake to enable a successful knowledge transfer, while they might face several challenges. At the end, conclusions will summarize this literature review bringing up possible questions for future discussion and useful recommendations about knowledge transfer within a strategic alliance. Chapter 2: The determinants in the process of knowledge transfer 1/ What is knowledge In general knowledge is considered to be gained by observation, study and experiences. It is the mixture of values, context information, expert insight (Davenport and Prusak, 1998) that resides within the person. It can be accumulated and subjected to improvements unlimited number of times. It is difficult to distinguish knowledge in itself from data and from information. Knowledge is neither of these two. Data results from transactions and information is derived from data. Fransman (1998) clearly underlines the fact that knowledge is indeed processed information. In this sense it is also possible to say that knowledge is socially constructed (Pentland 1995): individuals produce knowledge by processing information through their intellect. They act on knowledge by their actions and going through experiences, meanwhile their perspectives and insights change creating the opportunity to proceed differently in new situations, when new sets of information are available (Quinn et al. 1998; Weick 1995). 2/ Types of knowledge Another approach to introduce knowledge would be to state its different kinds: tacit and explicit. The observation of the existence of the explicit knowledge goes back to Polanyi (1966). Later the number of terms used were substantially enlarged to: formal, verbal knowledge (Corsini, 1987), declarative knowledge (Kogut and Zander, 1992), theoretical kind of knowledge (Nonaka and Takeuchi 1995), articulated or articulable knowledge (Hedlund, 1994; Winter, 1987), a know-why knowledge (Sanchez 1997). To Polanyi (1966) explicit knowledge is easily subjected to codification in a formal language (can be stated or written down). Winter (1987, p. 171) agrees on that definition by saying that this type of knowledge can be communicated from its possessor to another person in symbolic form and the recipient of the communication becomes as much in the know as the originator. Sobol and Lei (1994) identified two ways in which one can think about explicit knowledge. The first one in terms of communicability: it is easily written down, encoded, explained, or understood (Sobol and Lei, 1994, p. 170). Its also possible to think about this kind of knowledge in terms of possession: such knowledge is not specific or idiosyncratic to the firm or person possessing it (p. 170). Perhaps for this research the most interesting type of knowledge is the tacit knowledge because it is the one that largely contributes to competitive advantage of the firm. In fact, it was determined by several scholars (Delios and Beamish, 2001; Fang et al., 2007; Pisano, 1994) that tacit (as well as complex and specific) knowledge brings organizations to better-quality performance if its transfer was successfully accomplished. Also it is the type of knowledge that is considered to bring substantial competitive advantage by several academics (Nonaka, 1991; Grant, 1993; Spender, 1993). Polanyi (1966) wrote that tacit knowledge is non-verbalizable, intuitive and unarticulated. Consequently it is hard to replicate and share. Deeper understanding was brought by Nonaka (1994) and (Sternberg, 1994) who both support the fact that tacit knowledge is context-specific: it is a knowledge typically acquired on the job or in the situation where it is used (Sternberg, 1994, p. 28). Nonaka (1994) as other researchers also wrote that tacit knowledge is personal (Sanchez 1997), difficult to articulate, and highly linked with action (Nonaka and Takeuchi 1995). Therefore, on the one hand tacit knowledge is very difficult to transfer but on the other hand this same characteristic makes it being a critical and strategic resource of the firm and its competitive advantage, because competitors can hardly replicate it (Grant,1993; Sobal and Lei, 1994). 3/ Models: How to transmit knowledge Before getting to discussion in which the transfer of knowledge involves strategic alliances, it is useful to look at the process itself. Several models attempt to explain the basics of knowledge transfer. Some of them identify key elements that play a role this process, other present stages and steps, finally some conditions are also acknowledged. In order to understand how knowledge is transferred it is possible to first look at the definitions in cognitive psychology. At the individual level, the transfer was defined as how knowledge acquired in one situation applies (or fails to apply) to another by Singley and Anderson (1989). The transfer of knowledge in the organizational context also involves transfer at the individual level because the evolution of knowledge merely occurs when individuals express the will to share their experiences and insights with others (Davenport and Prusak, 1998; Kim and Mauborgne, 1998). This movement of knowledge through various levels of organization from individual, through group, up to organizational was identified by Nonaka (1994) as the concept of spiral of knowledge creation. The same process as on individual level occurs also at other levels such as group, department, divisionà ¢Ã¢â€š ¬Ã‚ ¦ Here the transfer of knowledge is the process in which knowledge and experience of one unit (company, group or department) affects another. Szulanski (2000, p.10) supports this vision: Knowledge transfer is seen as a process in which an organization recreates and maintains a complex, causally ambiguous set of routines (i.e. knowledge and experiences) in a new setting (i.e. another com pany, department, divisionà ¢Ã¢â€š ¬Ã‚ ¦). Knowledge transfer can be regarded as process which is composed of basic elements. Szulanski (2000) identified them as: source, channel, message, recipient, and context. Obviously, source is the unit from which the message (knowledge) will flow to the recipient by the channel and the whole process will be considered in a particular organizational context which can be fertile (facilitates knowledge transfer) or barren (problems occur with transfer). In the same research he explained several stages of the process of knowledge transfer. The process usually starts by the initiation. Then comes the implementation phase divided into several stages: the initial implementation effort, the ramp-up to satisfactory performance, and subsequent follow-through and evaluation efforts to integrate the practice with other practices of the recipient (Szulanski 2000, p.12) Furthermore, ODell and Grayson (1998) elaborated six steps in the knowledge transfer. Primary the identification of important knowledge is necessary. From this point on it is essential to collect the knowledge systematically and then organize the knowledge. When knowledge has been organized it can be shared (transferred), but before the final stage of usage of knowledge to solve problems, it has to be adapted. A number of conditions of knowledge transfer were presented by Grant and Baden-Fuller (2000). There are three main conditions of knowledge transfer. Firstly, the transmitters knowledge must be capable of being expressed in a communicable form. It is effortlessly done with explicit knowledge, however tacit knowledge has to be made explicit with the help of an expert system or be shared trough process of observation and imitation (p.122). What is more, transferred knowledge must be understandable to the source and the recipient. Therefore both have to use common knowledge which can be expressed in terms of the same language, information technology skills and culture. Finally, the new knowledge transferred from the source to recipient must be capable of aggregation which means that it would be possible to add to already existing knowledge. 4/What factors can influence the transfer of knowledge (positive and negative) Several features may play a substantial role in the process of knowledge transfer. When looking at the literature the most obvious in terms of determinants of knowledge transfer, might be the type of knowledge that is transferred. Explicit knowledge is easy to codify and to transfer. Conversely, a large number of studies, like Grant (1996), report the negative influence of knowledge tacitness on its transfer. In general it is considered that tacit knowledge is very difficult to share because of the complexity of its codification (Reed and DeFillippi, 1990) and organizational embeddedness (Kogut and Zander 1992) and that it contributes to creating ambiguity which can most of the times create barriers to the process of transfer. Simonin (1999, 2004) proposed a model in which knowledge tacitness indirectly influences knowledge transfer through ambiguity; it nevertheless specifies the importance of knowledge tacitness as critical factor which makes knowledge transfer difficult. Academics like Grant (1996), Reed and DeFillippi (1990) and Zander and Kogut (1995) raise the issue of complexity of knowledge. Complexity may appear for example when different kinds of skills and wide range of knowledge (individual, team-based experiences, technologies) have to be shared. The more complex the knowledge, the more difficult it is to share. Reed and DeFillippi (1990) also considered the influence of the specificity on knowledge transfer. The term refers to knowledge which is related only to certain kind of transaction relations. Williamson (1999) defined specificity as the ease with which an asset can be redeployed to alternative uses and by alternative users without loss of productive value. From these studies it is now clear that tacitness, complexity and specificity impedes to knowledge transfer by creating ambiguity. According to Simonin (1999) tacitness has the greatest influence in this relationship, followed by specificity, which is much less significant and finally complexity. It seems that culture and willingness to share, elements often cited as factors that can influence knowledge transfer, are interrelated. Willingness to share is one of the key determinants of knowledge transfer; this means that one must be willing to share and the other one to receive. It is not always easy to let go from knowledge. As Bernstein (2000) suggests that willingness to share is influenced by identity because an individual might have a psychological ownership over the knowledge he possesses. Furthermore, Alavi and Leidner (1999) made a good remark about the fact that it will be difficult for organizations to share knowledge and integrate knowledge-based systems without primary having the information sharing culture (i.e. valuing information sharing). Davenport (1997) describes this as open versus closed culture. Very similar to the concept of willingness to share, Szulanski (1996, p.12) argued that lack of motivation also has to be considered as one of the barriers to the process of knowledge transfer because it may result in procrastination, passivity, feigned acceptance, sabotage, or outright rejection in the implementation and use of new knowledge. Szulanski (1996) also noticed another barrier of knowledge transfer. Absorptive capacity is one of the very well known elements that influence the transfer of knowledge. It is the ability to exploit outside sources of knowledge (Cohen Levinthal, 1990, p. 128) and integrate it by replacing old practices by new ones, which is not always effortless (Glaser, Abelson, Garrison, 1983). Chapter 3: Particularities of strategic alliances shaping the process of knowledge transfer Combining resources is the logical response to the harshness of nowadays competition. Other factors as the increase in customers expectations and the less strict regulatory barriers also led companies to form alliances (Gomes-Casseres 1994; Harrigan 1988; Kogut 1988; Nielsen 1988). However these are not the only possibilities alliances are able to provide. Alliances can be considered as one of the means for knowledge gaining and sharing, besides mergers and acquisitions. According to Inkpen (2000) there exist several possibilities for companies to transfer and gain knowledge: internalization within the firm, market contracts, and relational contracts. He considers individual strategic alliances as relational contracts that permit knowledge acquisition and transfer, suitable in the context where knowledge is complex and hard to codify, whereas market based transfers are considered to be more efficient for product related (embodied) knowledge. Number of other researchers also supported the fact that alliances permit firms to share knowledge and ultimately to learn from the partners (Grant, 1996; Hamel, 1991; Khanna et al., 1998; Kogut, 1998). Inkpen (2000, p.1019) wrote: Through the shared execution of the alliance task, mutual interdependence and problem solving , and observation of alliance activities and outcomes, firms can learn from their partners. 1/ Definition strategic alliance In the literature it is possible to find several key characteristics of an alliance. An alliance is usually created between two or more firms that cooperate together in order to achieve some strategic objective, create value that they would not be able to achieve on their own (Borys and Jemison, 1989) and pursue a set of goals (Harrigan 1988; Yoshino and Rangan 1995). Partners are complementary and contribute with their resources and capabilities (Teece, 1992); they are involved in a range of interdependent activities (Contractor and Lorange 1988>2002) and share benefits and risks of the alliance. Dussauge et al. (2000, p.99) described an alliance between two Knowledge Based Enterprises as: an arrangement between two or more independent companies that choose to carry out a project or operate in a specific business area by co-coordinating the necessary skills and resources jointly rather than either operating alone or merging their operations. Some academics consider alliances to be arrangements in which firms establish exchange relationship without joint ownership being considered as a form of alliance (Dickson Weaver, 1997); others consider equity alliances such as joint ventures, also be a form of alliance (Mowery et al. 1996). In this research all possible forms of alliances are considered: a non-equity alliance (co-operation without creation of new organization or exchange of equity); an equity alliance (unilateral or bilateral equity holding among partners without creation of the a new firm); a joint venture (new firm is created, involving joint resources, where partners share ownership and control) 2/ Why strategic alliance can be considered (by certain researchers) the most appropriate form of collaboration for knowledge transfer? Accordingly, of all approaches to knowledge imitability between a knowledge holder and a knowledge seeker, strategic alliances constitute perhaps the most adequate, but nevertheless challenging vehicle for internalizing the others competency Simonin (1999, 595). There are several forms of interorganizational exchange that enable firms to protect valuable resources including mergers and acquisitions, licensing and alliances (Coff, 1997). There are two kinds of knowledge explicit and tacit (Polanyi, 1966), therefore if two firms share knowledge, it will be explicit explicit, explicit tacit or tacit tacit. Licensing can provide a solution for the first two combinations. Yet, it is very hard to gain competitive advantage with explicit knowledge resources, because they might be sold to other companies. By contrast, competitive advantage occurs when tacit knowledge assets are combined, provided their ambiguity, complexity and inimitability (Barney 1991; Dierickx and Cool 1989). This is done through alliances or mergers and acquisitions. Conventional sale contracts, markets, mergers and acquisitions seem to be less attractive structures for knowledge transfer in comparison with alliances. Coff (1997) found that it is not easy to evaluate the value of knowledge based resources, primary because of their tacitness (Mowery, 1983; Pisano, 1990). Firms that want to acquire new knowledge will have to face uncertainty concerning its characteristics and difficulties to determine its quality and to be certain of the transferability of the knowledge held by another firm. Some researchers raise a concern about the fact that in some cases the firm that will acquire knowledge is not certain to be able to deploy it (Flamholtz and Coff 1994; Haspeslagh and Jemison 1991; Polanyi 1966; Zander and Kogut 1995). In this sense, alliance permits to mitigate risks of bad investments. The indigestibility problem of MA, quite the opposite of alliances, was discussed by several academics (Hennart and Reddy, 1997; Inkpen and Beamish, 1997; Dunning, 1997). Indigestible assets are those who come with valuable assets during the transaction (Nonaka 1994). In fact, for some of these assets (in this case knowledge) the aftermarket may not exist after the acquisition. Within an alliance the company does not have to pay for digestion of non-valuable assets and has access to important knowledge resources held by the partner. Reid, Bussiere, Greenaway 2001 (alliance formation issues) Grant and Baden-Fuller (2004) identified some advantages of alliances related to knowledge like possibility to achieve early-mover advantage and risk spreading. Early-mover advantage signifies recombining knowledge into innovative products in a quickly advancing knowledge environment. More precisely, this means to quickly identify, access, and integrate across new knowledge combinations. In this situation strategic alliances enable company to quickly access knowledge necessary for introduction of new products to market. Grant and Baden-Fuller (2004) wrote: The greater the benefits of early-mover advantage in technologically-dynamic environments, the greater the propensity for firms to establish interfirm collaborative arrangements in order to access new knowledge. A risk exists in terms that sometimes a company might be uncertain about the future knowledge requirements and knowledge acquisition and integration takes time, the investments are risky (Grant and Baden-Fuller, 2004): The greater the uncertainty as to the future knowledge requirements of a firms product range, the greater its propensity to engage in interfirm collaborations as a means of accessing and integrating additional knowledge. Powell (1987) also noticed that alliance formation diminishes the risk that knowledge will dissipate quickly. 3/ Which characteristics and capabilities of alliance partners can ameliorate the transfer of knowledge? Before considering the transfer of knowledge, it is important to underline, that both partners of an alliance are expected to possess valuable knowledge (Eisenhardt and Schoonhoven 1996). Ahuja (2000) considered such knowledge possession as opportunity for linkage-formation. He also identified three categories of valuable knowledge assets that are: technical capital (capability to create new products, technology and processes), commercial capital (supporting resources) and social capital (useful networks). Throughout the literature it is possible to distinguish some capabilities that are important for proper functioning of the knowledge based alliance: absorptive capacity, combinative capability, experience with alliances, suitable design for knowledge exchange, and choice of alliance structure. In numerous studies, absorptive capacity plays an essential role in the process of knowledge transfer and learning within strategic alliances (Lane and Lubatkin, 1998). Van den Bosch et al. (1999) wrote that it combined the evaluation, acquisition integration and commercial utilization of knowledge obtained from sources exogenous to the firm. Absorptive capacity is susceptible to evolve and augment through activity (Barringer and Harrison, 2000) because it is historical and path dependent in nature as was defined by Cohen and Levinthal (1990). Grant (1996) recognized that knowledge absorption capability can be influenced by: the degree to which the expert knowledge held by organizational members is utilized; the width of specialized knowledge required from firm members; the degree to which a capability can access additional knowledge and reconfigure existing knowledge. Defined by Kogut and Zander (1992) combinative capability refers to the ability of the parties of an alliance to extend, interpret, apply, current and acquired knowledge with the goal of generating new applications from existing knowledge base. Collaborative know-how affects firms ability to form a successful partnership and create a solid ground for knowledge transfer. Simonin (1997) refers to it as to ability to institutionalize organizational routines as a result of previous experiences. Pennings et al. (1994) supports that firms tend to reproduce the behavior from their past experiences. When firms have previous experiences of collaboration within alliance, they acquire knowledge that helps them to effectively design future alliances (Lyles, 1988) and develop superior capabilities at managing particular organizational forms such as alliances (Kale et al., 2002, p. 748). This experience permits avoiding various difficulties (Doz, 1996; Powell et al., 1996). Teece (2000) stressed the importance of the design of the firm to enhance performance and knowledge sharing. He identified distinctive characteristics of design in successful firms. Among these, entrepreneurial orientation and flexibility expressed in rapid responses to ephemeral market opportunities flexible boundaries (outsourcing and alliances). They were also characterized by their non-bureaucratic decision making and rapid internal knowledge sharing owing to the not really strict hierarchies. The choice of alliance structure should be determined considering the perspective of gaining valuable resources (knowledge) from a partner without losing its own (Das and Teng, 2000). Different views exist as to effectiveness of equity joint venture form of alliance for successful knowledge transfer. Several researchers find that this form is the most suitable for the transfer of tacit knowledge and complex capabilities (Kogut, 1988, Mowery et al., 1996). However, Das and Teng (2000) think that this structure is too risky for partnership based on knowledge-based contribution, and that it is more suitable for contributing property-based resources. Inkpen (2002) identifies five categories of antecedents of alliance learning: learning partner characteristics; teaching partner characteristics; knowledge characteristics; relationship factors; and alliance form. Two key characteristics of the learning partner, identified by Nielsen and Nielsen (2009), are important, namely collaborative know-how (same as previous experience of alliances) and knowledge protectiveness (Simonin, 1997, 1999). Protectiveness matches the concept of openness and the degree to which partners are protective of their knowledge. How well do the support the risk of knowledge leakage or spillover (Inkpen, 2000). Chapter 4: potential strategies and behavior that parties of the strategic alliance might adopt to enhance the transfer of knowledge and to cope with difficulties alliances might face Strategic alliances might face a number of difficulties. The first thing that comes out from the numerous literature on strategic alliance and knowledge sharing, is the fear of knowledge spillovers, that are assumed to be inevitable consequence of alliance involvement, despite the efforts companies make in order to protect their valuable knowledge assets (Inkpen, 2000). Therefore, it immediately comes to the issue of trust. In the late 90 a discussion was raised about the possibility that some firms use strategic alliance as a Trojan Horse in order to steal knowledge from its partners. This was especially thought about Japanese partners. However empirical studies do not find support for this hypothesis (Hennart et al. 1999; Mowery 1996). The literature elaborates on so called learning races (Khanna et al. 1998) when one partner (acts opportunistically) tries to gain more knowledge in the alliance exchange, than he shares. Hamel (1991, 86) described alliances as transitional devices where the primary objective was the internalization of partner skills. This creates a significant challenge for strategic alliance. To deal with with this issue, norms and systems can be designed; functional rules can be developed to structure partner engagement (QuÃÆ' ©lin, 1997). When little trust is involved, this may lead to knowledge protectiveness from one or both of the partners. Nielsen and Nielsen (2009) wrote that protectiveness not only may lead to uncertainty and conflict but it also reduces the amount of information exchanged. Determinants in the Process of Knowledge Transfer Determinants in the Process of Knowledge Transfer Knowledge was closely investigated by academic researchers for the last few decades. It is nowadays considered as one of the most important strategic assets (Winter, 1987) that contribute to the competitive advantage of the firms (Kogut and Zander, 1992); this perspective is associated with the knowledge-based view (Grant, 1996). Resulting from that numerous studies exist about knowledge. As Winter (1987) suggests, knowledge can be created, stored and transmitted (transferred), exploited and the ability to success in these activities represents the essence of the firm. Different studies consider these various stages. However, the process of transfer is very interesting to reflect on because it is precisely knowledge transfer that has been established by several academics as having a major impact on performance (Cohen and Levinthal, 1990; Osterloh and Frey 2000). Some literature analyzes the process of knowledge transfer itself (ODell and Grayson, 1998; Szulanski, 2000), and its determinants (Grant and Baden- Fuller, 2000), other its boundaries (Szulanski, 1996; Salk, 1996; Hennart et al. 1999; Dyer and Hatch, 2006; Heiman and Nickerson, 2004). Together the authors try to shed light on the stages of knowledge transfer and factors that can positively or negatively contribute to it. Despite the abundance of studies, some researchers like Wagner (2005) call for the investigation of soft issues such as absorptive capacity and culture in successful knowledge sharing. Moreover, different researchers (Inkpen, 2000; Mowery et al. 1996), studied knowledge in the context of a strategic alliance. Some studies convey the idea that this might be the most appropriate form of collaboration in order to share (transfer) knowledge because of several advantages (Grant and Baden-Fuller, 2004). Other academics, as Simonin (1999), define difficulties that alliances face in the process of knowledge transfer. Therefore it might be useful to combine these ideas and see what makes alliances being so unique and how knowledge can be transferred in these structures. This literature review is meant to integrate various studies to make a clear picture of what makes the transfer of knowledge successful in-between partners of strategic alliance by reviewing determinants of knowledge transfer, particularities of alliances and possible strategies to follow in order to achieve the transfer. Problem statement The problem indication brings us to delimitate the following area of research: Successful knowledge transfer in a strategic alliance Research Questions Since knowledge becomes an essential asset, and its manipulation might have strong impact on the wellbeing and performance of the firm, it is interesting to investigate the knowledge transfer. Our inquiry will be done by first looking at what is knowledge and its different kinds. Then the models of knowledge transfer (in general) will be considered to see how knowledge is shared, finishing with the factors that can impact positively or negatively (barriers) on this process, this includes the soft issues sited previously. Research question 1: What are the key determinants in the process of knowledge transfer? Strategic alliances are often used by firms to transfer knowledge. Several studies might convey the idea that alliances is the most appropriate form of cooperation in order to transfer knowledge, that is why in the second research question we are going to discuss characteristics and particularities of alliances that contribute to build a solid ground for knowledge transfer. Research question 2: What characteristics and particularities of the strategic alliance might shape the process of knowledge transfer in this form of cooperation? Perhaps the most practical issue for organizations involved in the process of knowledge transfer within a strategic alliance is the one that deals with practices to implement and strategies to follow for both partners. Therefore the third research question will deal with possible behavior and ways of doing that can facilitate the knowledge transfer within a strategic alliance. Research question3: What strategies and behavior could the parties of the strategic alliance adopt  (implement) to enhance the transfer of knowledge and cope with the difficulties alliance might face? Research methods This is a descriptive research that will be done in the form of literature review. The data sources are the existing academic literature in the field of management, strategy and organization science. The literature includes top journals such as Journal of Management Studies, Strategic Management Journal, Knowledge and Process Management, Academy of Management Journal Structure of the thesis In the second chapter the investigation will be done in order to gain knowledge of what could be the determinants of the knowledge transfer in general (without considering the context of the strategic alliances). To do this, first of all, knowledge and its different kinds have to be defined. Following that the review of the literature about the process of knowledge transfer itself will be made. Chapter 2 will end with the review of possible factors that can affect the process by whether contributing to its success or by creating barriers to it. In the third chapter we are going to take a closer look on the strategic alliances. Following the definition, the discussion will pursue in order to understand why certain researchers think that strategic alliances are the most appropriate form of collaboration between firms for the process of knowledge transfer. Moreover, in this chapter we are going to look if certain characteristics of the alliance can ameliorate the transfer (i.e. firms similarities, orientation, strategy, resources). The last research question will be answered in the fourth chapter by examining the possible strategies and behaviors that companies involved in the alliance could undertake to enable a successful knowledge transfer, while they might face several challenges. At the end, conclusions will summarize this literature review bringing up possible questions for future discussion and useful recommendations about knowledge transfer within a strategic alliance. Chapter 2: The determinants in the process of knowledge transfer 1/ What is knowledge In general knowledge is considered to be gained by observation, study and experiences. It is the mixture of values, context information, expert insight (Davenport and Prusak, 1998) that resides within the person. It can be accumulated and subjected to improvements unlimited number of times. It is difficult to distinguish knowledge in itself from data and from information. Knowledge is neither of these two. Data results from transactions and information is derived from data. Fransman (1998) clearly underlines the fact that knowledge is indeed processed information. In this sense it is also possible to say that knowledge is socially constructed (Pentland 1995): individuals produce knowledge by processing information through their intellect. They act on knowledge by their actions and going through experiences, meanwhile their perspectives and insights change creating the opportunity to proceed differently in new situations, when new sets of information are available (Quinn et al. 1998; Weick 1995). 2/ Types of knowledge Another approach to introduce knowledge would be to state its different kinds: tacit and explicit. The observation of the existence of the explicit knowledge goes back to Polanyi (1966). Later the number of terms used were substantially enlarged to: formal, verbal knowledge (Corsini, 1987), declarative knowledge (Kogut and Zander, 1992), theoretical kind of knowledge (Nonaka and Takeuchi 1995), articulated or articulable knowledge (Hedlund, 1994; Winter, 1987), a know-why knowledge (Sanchez 1997). To Polanyi (1966) explicit knowledge is easily subjected to codification in a formal language (can be stated or written down). Winter (1987, p. 171) agrees on that definition by saying that this type of knowledge can be communicated from its possessor to another person in symbolic form and the recipient of the communication becomes as much in the know as the originator. Sobol and Lei (1994) identified two ways in which one can think about explicit knowledge. The first one in terms of communicability: it is easily written down, encoded, explained, or understood (Sobol and Lei, 1994, p. 170). Its also possible to think about this kind of knowledge in terms of possession: such knowledge is not specific or idiosyncratic to the firm or person possessing it (p. 170). Perhaps for this research the most interesting type of knowledge is the tacit knowledge because it is the one that largely contributes to competitive advantage of the firm. In fact, it was determined by several scholars (Delios and Beamish, 2001; Fang et al., 2007; Pisano, 1994) that tacit (as well as complex and specific) knowledge brings organizations to better-quality performance if its transfer was successfully accomplished. Also it is the type of knowledge that is considered to bring substantial competitive advantage by several academics (Nonaka, 1991; Grant, 1993; Spender, 1993). Polanyi (1966) wrote that tacit knowledge is non-verbalizable, intuitive and unarticulated. Consequently it is hard to replicate and share. Deeper understanding was brought by Nonaka (1994) and (Sternberg, 1994) who both support the fact that tacit knowledge is context-specific: it is a knowledge typically acquired on the job or in the situation where it is used (Sternberg, 1994, p. 28). Nonaka (1994) as other researchers also wrote that tacit knowledge is personal (Sanchez 1997), difficult to articulate, and highly linked with action (Nonaka and Takeuchi 1995). Therefore, on the one hand tacit knowledge is very difficult to transfer but on the other hand this same characteristic makes it being a critical and strategic resource of the firm and its competitive advantage, because competitors can hardly replicate it (Grant,1993; Sobal and Lei, 1994). 3/ Models: How to transmit knowledge Before getting to discussion in which the transfer of knowledge involves strategic alliances, it is useful to look at the process itself. Several models attempt to explain the basics of knowledge transfer. Some of them identify key elements that play a role this process, other present stages and steps, finally some conditions are also acknowledged. In order to understand how knowledge is transferred it is possible to first look at the definitions in cognitive psychology. At the individual level, the transfer was defined as how knowledge acquired in one situation applies (or fails to apply) to another by Singley and Anderson (1989). The transfer of knowledge in the organizational context also involves transfer at the individual level because the evolution of knowledge merely occurs when individuals express the will to share their experiences and insights with others (Davenport and Prusak, 1998; Kim and Mauborgne, 1998). This movement of knowledge through various levels of organization from individual, through group, up to organizational was identified by Nonaka (1994) as the concept of spiral of knowledge creation. The same process as on individual level occurs also at other levels such as group, department, divisionà ¢Ã¢â€š ¬Ã‚ ¦ Here the transfer of knowledge is the process in which knowledge and experience of one unit (company, group or department) affects another. Szulanski (2000, p.10) supports this vision: Knowledge transfer is seen as a process in which an organization recreates and maintains a complex, causally ambiguous set of routines (i.e. knowledge and experiences) in a new setting (i.e. another com pany, department, divisionà ¢Ã¢â€š ¬Ã‚ ¦). Knowledge transfer can be regarded as process which is composed of basic elements. Szulanski (2000) identified them as: source, channel, message, recipient, and context. Obviously, source is the unit from which the message (knowledge) will flow to the recipient by the channel and the whole process will be considered in a particular organizational context which can be fertile (facilitates knowledge transfer) or barren (problems occur with transfer). In the same research he explained several stages of the process of knowledge transfer. The process usually starts by the initiation. Then comes the implementation phase divided into several stages: the initial implementation effort, the ramp-up to satisfactory performance, and subsequent follow-through and evaluation efforts to integrate the practice with other practices of the recipient (Szulanski 2000, p.12) Furthermore, ODell and Grayson (1998) elaborated six steps in the knowledge transfer. Primary the identification of important knowledge is necessary. From this point on it is essential to collect the knowledge systematically and then organize the knowledge. When knowledge has been organized it can be shared (transferred), but before the final stage of usage of knowledge to solve problems, it has to be adapted. A number of conditions of knowledge transfer were presented by Grant and Baden-Fuller (2000). There are three main conditions of knowledge transfer. Firstly, the transmitters knowledge must be capable of being expressed in a communicable form. It is effortlessly done with explicit knowledge, however tacit knowledge has to be made explicit with the help of an expert system or be shared trough process of observation and imitation (p.122). What is more, transferred knowledge must be understandable to the source and the recipient. Therefore both have to use common knowledge which can be expressed in terms of the same language, information technology skills and culture. Finally, the new knowledge transferred from the source to recipient must be capable of aggregation which means that it would be possible to add to already existing knowledge. 4/What factors can influence the transfer of knowledge (positive and negative) Several features may play a substantial role in the process of knowledge transfer. When looking at the literature the most obvious in terms of determinants of knowledge transfer, might be the type of knowledge that is transferred. Explicit knowledge is easy to codify and to transfer. Conversely, a large number of studies, like Grant (1996), report the negative influence of knowledge tacitness on its transfer. In general it is considered that tacit knowledge is very difficult to share because of the complexity of its codification (Reed and DeFillippi, 1990) and organizational embeddedness (Kogut and Zander 1992) and that it contributes to creating ambiguity which can most of the times create barriers to the process of transfer. Simonin (1999, 2004) proposed a model in which knowledge tacitness indirectly influences knowledge transfer through ambiguity; it nevertheless specifies the importance of knowledge tacitness as critical factor which makes knowledge transfer difficult. Academics like Grant (1996), Reed and DeFillippi (1990) and Zander and Kogut (1995) raise the issue of complexity of knowledge. Complexity may appear for example when different kinds of skills and wide range of knowledge (individual, team-based experiences, technologies) have to be shared. The more complex the knowledge, the more difficult it is to share. Reed and DeFillippi (1990) also considered the influence of the specificity on knowledge transfer. The term refers to knowledge which is related only to certain kind of transaction relations. Williamson (1999) defined specificity as the ease with which an asset can be redeployed to alternative uses and by alternative users without loss of productive value. From these studies it is now clear that tacitness, complexity and specificity impedes to knowledge transfer by creating ambiguity. According to Simonin (1999) tacitness has the greatest influence in this relationship, followed by specificity, which is much less significant and finally complexity. It seems that culture and willingness to share, elements often cited as factors that can influence knowledge transfer, are interrelated. Willingness to share is one of the key determinants of knowledge transfer; this means that one must be willing to share and the other one to receive. It is not always easy to let go from knowledge. As Bernstein (2000) suggests that willingness to share is influenced by identity because an individual might have a psychological ownership over the knowledge he possesses. Furthermore, Alavi and Leidner (1999) made a good remark about the fact that it will be difficult for organizations to share knowledge and integrate knowledge-based systems without primary having the information sharing culture (i.e. valuing information sharing). Davenport (1997) describes this as open versus closed culture. Very similar to the concept of willingness to share, Szulanski (1996, p.12) argued that lack of motivation also has to be considered as one of the barriers to the process of knowledge transfer because it may result in procrastination, passivity, feigned acceptance, sabotage, or outright rejection in the implementation and use of new knowledge. Szulanski (1996) also noticed another barrier of knowledge transfer. Absorptive capacity is one of the very well known elements that influence the transfer of knowledge. It is the ability to exploit outside sources of knowledge (Cohen Levinthal, 1990, p. 128) and integrate it by replacing old practices by new ones, which is not always effortless (Glaser, Abelson, Garrison, 1983). Chapter 3: Particularities of strategic alliances shaping the process of knowledge transfer Combining resources is the logical response to the harshness of nowadays competition. Other factors as the increase in customers expectations and the less strict regulatory barriers also led companies to form alliances (Gomes-Casseres 1994; Harrigan 1988; Kogut 1988; Nielsen 1988). However these are not the only possibilities alliances are able to provide. Alliances can be considered as one of the means for knowledge gaining and sharing, besides mergers and acquisitions. According to Inkpen (2000) there exist several possibilities for companies to transfer and gain knowledge: internalization within the firm, market contracts, and relational contracts. He considers individual strategic alliances as relational contracts that permit knowledge acquisition and transfer, suitable in the context where knowledge is complex and hard to codify, whereas market based transfers are considered to be more efficient for product related (embodied) knowledge. Number of other researchers also supported the fact that alliances permit firms to share knowledge and ultimately to learn from the partners (Grant, 1996; Hamel, 1991; Khanna et al., 1998; Kogut, 1998). Inkpen (2000, p.1019) wrote: Through the shared execution of the alliance task, mutual interdependence and problem solving , and observation of alliance activities and outcomes, firms can learn from their partners. 1/ Definition strategic alliance In the literature it is possible to find several key characteristics of an alliance. An alliance is usually created between two or more firms that cooperate together in order to achieve some strategic objective, create value that they would not be able to achieve on their own (Borys and Jemison, 1989) and pursue a set of goals (Harrigan 1988; Yoshino and Rangan 1995). Partners are complementary and contribute with their resources and capabilities (Teece, 1992); they are involved in a range of interdependent activities (Contractor and Lorange 1988>2002) and share benefits and risks of the alliance. Dussauge et al. (2000, p.99) described an alliance between two Knowledge Based Enterprises as: an arrangement between two or more independent companies that choose to carry out a project or operate in a specific business area by co-coordinating the necessary skills and resources jointly rather than either operating alone or merging their operations. Some academics consider alliances to be arrangements in which firms establish exchange relationship without joint ownership being considered as a form of alliance (Dickson Weaver, 1997); others consider equity alliances such as joint ventures, also be a form of alliance (Mowery et al. 1996). In this research all possible forms of alliances are considered: a non-equity alliance (co-operation without creation of new organization or exchange of equity); an equity alliance (unilateral or bilateral equity holding among partners without creation of the a new firm); a joint venture (new firm is created, involving joint resources, where partners share ownership and control) 2/ Why strategic alliance can be considered (by certain researchers) the most appropriate form of collaboration for knowledge transfer? Accordingly, of all approaches to knowledge imitability between a knowledge holder and a knowledge seeker, strategic alliances constitute perhaps the most adequate, but nevertheless challenging vehicle for internalizing the others competency Simonin (1999, 595). There are several forms of interorganizational exchange that enable firms to protect valuable resources including mergers and acquisitions, licensing and alliances (Coff, 1997). There are two kinds of knowledge explicit and tacit (Polanyi, 1966), therefore if two firms share knowledge, it will be explicit explicit, explicit tacit or tacit tacit. Licensing can provide a solution for the first two combinations. Yet, it is very hard to gain competitive advantage with explicit knowledge resources, because they might be sold to other companies. By contrast, competitive advantage occurs when tacit knowledge assets are combined, provided their ambiguity, complexity and inimitability (Barney 1991; Dierickx and Cool 1989). This is done through alliances or mergers and acquisitions. Conventional sale contracts, markets, mergers and acquisitions seem to be less attractive structures for knowledge transfer in comparison with alliances. Coff (1997) found that it is not easy to evaluate the value of knowledge based resources, primary because of their tacitness (Mowery, 1983; Pisano, 1990). Firms that want to acquire new knowledge will have to face uncertainty concerning its characteristics and difficulties to determine its quality and to be certain of the transferability of the knowledge held by another firm. Some researchers raise a concern about the fact that in some cases the firm that will acquire knowledge is not certain to be able to deploy it (Flamholtz and Coff 1994; Haspeslagh and Jemison 1991; Polanyi 1966; Zander and Kogut 1995). In this sense, alliance permits to mitigate risks of bad investments. The indigestibility problem of MA, quite the opposite of alliances, was discussed by several academics (Hennart and Reddy, 1997; Inkpen and Beamish, 1997; Dunning, 1997). Indigestible assets are those who come with valuable assets during the transaction (Nonaka 1994). In fact, for some of these assets (in this case knowledge) the aftermarket may not exist after the acquisition. Within an alliance the company does not have to pay for digestion of non-valuable assets and has access to important knowledge resources held by the partner. Reid, Bussiere, Greenaway 2001 (alliance formation issues) Grant and Baden-Fuller (2004) identified some advantages of alliances related to knowledge like possibility to achieve early-mover advantage and risk spreading. Early-mover advantage signifies recombining knowledge into innovative products in a quickly advancing knowledge environment. More precisely, this means to quickly identify, access, and integrate across new knowledge combinations. In this situation strategic alliances enable company to quickly access knowledge necessary for introduction of new products to market. Grant and Baden-Fuller (2004) wrote: The greater the benefits of early-mover advantage in technologically-dynamic environments, the greater the propensity for firms to establish interfirm collaborative arrangements in order to access new knowledge. A risk exists in terms that sometimes a company might be uncertain about the future knowledge requirements and knowledge acquisition and integration takes time, the investments are risky (Grant and Baden-Fuller, 2004): The greater the uncertainty as to the future knowledge requirements of a firms product range, the greater its propensity to engage in interfirm collaborations as a means of accessing and integrating additional knowledge. Powell (1987) also noticed that alliance formation diminishes the risk that knowledge will dissipate quickly. 3/ Which characteristics and capabilities of alliance partners can ameliorate the transfer of knowledge? Before considering the transfer of knowledge, it is important to underline, that both partners of an alliance are expected to possess valuable knowledge (Eisenhardt and Schoonhoven 1996). Ahuja (2000) considered such knowledge possession as opportunity for linkage-formation. He also identified three categories of valuable knowledge assets that are: technical capital (capability to create new products, technology and processes), commercial capital (supporting resources) and social capital (useful networks). Throughout the literature it is possible to distinguish some capabilities that are important for proper functioning of the knowledge based alliance: absorptive capacity, combinative capability, experience with alliances, suitable design for knowledge exchange, and choice of alliance structure. In numerous studies, absorptive capacity plays an essential role in the process of knowledge transfer and learning within strategic alliances (Lane and Lubatkin, 1998). Van den Bosch et al. (1999) wrote that it combined the evaluation, acquisition integration and commercial utilization of knowledge obtained from sources exogenous to the firm. Absorptive capacity is susceptible to evolve and augment through activity (Barringer and Harrison, 2000) because it is historical and path dependent in nature as was defined by Cohen and Levinthal (1990). Grant (1996) recognized that knowledge absorption capability can be influenced by: the degree to which the expert knowledge held by organizational members is utilized; the width of specialized knowledge required from firm members; the degree to which a capability can access additional knowledge and reconfigure existing knowledge. Defined by Kogut and Zander (1992) combinative capability refers to the ability of the parties of an alliance to extend, interpret, apply, current and acquired knowledge with the goal of generating new applications from existing knowledge base. Collaborative know-how affects firms ability to form a successful partnership and create a solid ground for knowledge transfer. Simonin (1997) refers to it as to ability to institutionalize organizational routines as a result of previous experiences. Pennings et al. (1994) supports that firms tend to reproduce the behavior from their past experiences. When firms have previous experiences of collaboration within alliance, they acquire knowledge that helps them to effectively design future alliances (Lyles, 1988) and develop superior capabilities at managing particular organizational forms such as alliances (Kale et al., 2002, p. 748). This experience permits avoiding various difficulties (Doz, 1996; Powell et al., 1996). Teece (2000) stressed the importance of the design of the firm to enhance performance and knowledge sharing. He identified distinctive characteristics of design in successful firms. Among these, entrepreneurial orientation and flexibility expressed in rapid responses to ephemeral market opportunities flexible boundaries (outsourcing and alliances). They were also characterized by their non-bureaucratic decision making and rapid internal knowledge sharing owing to the not really strict hierarchies. The choice of alliance structure should be determined considering the perspective of gaining valuable resources (knowledge) from a partner without losing its own (Das and Teng, 2000). Different views exist as to effectiveness of equity joint venture form of alliance for successful knowledge transfer. Several researchers find that this form is the most suitable for the transfer of tacit knowledge and complex capabilities (Kogut, 1988, Mowery et al., 1996). However, Das and Teng (2000) think that this structure is too risky for partnership based on knowledge-based contribution, and that it is more suitable for contributing property-based resources. Inkpen (2002) identifies five categories of antecedents of alliance learning: learning partner characteristics; teaching partner characteristics; knowledge characteristics; relationship factors; and alliance form. Two key characteristics of the learning partner, identified by Nielsen and Nielsen (2009), are important, namely collaborative know-how (same as previous experience of alliances) and knowledge protectiveness (Simonin, 1997, 1999). Protectiveness matches the concept of openness and the degree to which partners are protective of their knowledge. How well do the support the risk of knowledge leakage or spillover (Inkpen, 2000). Chapter 4: potential strategies and behavior that parties of the strategic alliance might adopt to enhance the transfer of knowledge and to cope with difficulties alliances might face Strategic alliances might face a number of difficulties. The first thing that comes out from the numerous literature on strategic alliance and knowledge sharing, is the fear of knowledge spillovers, that are assumed to be inevitable consequence of alliance involvement, despite the efforts companies make in order to protect their valuable knowledge assets (Inkpen, 2000). Therefore, it immediately comes to the issue of trust. In the late 90 a discussion was raised about the possibility that some firms use strategic alliance as a Trojan Horse in order to steal knowledge from its partners. This was especially thought about Japanese partners. However empirical studies do not find support for this hypothesis (Hennart et al. 1999; Mowery 1996). The literature elaborates on so called learning races (Khanna et al. 1998) when one partner (acts opportunistically) tries to gain more knowledge in the alliance exchange, than he shares. Hamel (1991, 86) described alliances as transitional devices where the primary objective was the internalization of partner skills. This creates a significant challenge for strategic alliance. To deal with with this issue, norms and systems can be designed; functional rules can be developed to structure partner engagement (QuÃÆ' ©lin, 1997). When little trust is involved, this may lead to knowledge protectiveness from one or both of the partners. Nielsen and Nielsen (2009) wrote that protectiveness not only may lead to uncertainty and conflict but it also reduces the amount of information exchanged.