BAM 2020 Conference Track 14 InterOrganisational Collaboration Partnerships
BAM 2020 Conference Track 14: Inter-Organisational Collaboration: Partnerships, Alliances and Networks Practice Theory And The Interplay Of Alliance Capability Dimensions: A Study Of University-Industry R&D Alliances ID: 749 Nabilah Kamaruzaman & Arnifa Asmawi, Faculty of Management, Multimedia University, Malaysia nabilah_kamaruzaman@yahoo. com arnifa. asmawi@mmu. edu. my 1
Table of Contents 1 Introduction 2 Alliance Capability 3 The Practice Theory 4 The Interplay of Alliance Capability Dimensions 5 Proposed Research Design 2
• 1 Introduction 3
Importance of Industry 4. 0 in Malaysia Technological Revolution Socio-Economic Growth To foster sustainable industrialization Included in SDG 2030 blueprint Key Economic Growth Activity in Malaysia Shared Prosperity Vision 2030 R&D Activities Critical driver for Industry 4. 0 To revolutionize all sectors of economy 4
University-Industry R&D Alliance R&D alliances are innovation-based collaborations between two or more organizations. Mutual Advantage Firms coordinate R&D activities and integrate complementary resources to attain mutual advantage. Key Strategy To accelerate technological innovation, access to external knowledge, expertise and resource complementarity* Problem Statement Limited university-industry R&D alliances in Malaysia- dissimilar strategic goals, business models, lack of trust, and incompatible alliance capabilities** *(Hájek and Stejskal, 2018) **(Azman et al. , 2018; Jongbloed, 2015). The need for alliance capability Organizations must develop prerequisite alliance capabilities (AC) in order to be successful in their R&D alliances. Objective of this paper To examine dimensions of AC in universityindustry R&D alliances. To explore how Practice Theory could explain the interplay between these AC dimensions. 5
• 2 Alliance Capability 6
Alliance Capability Alliance capabilities studies are diversified in different research and theoretical branches as below: . Supplier and customer integration, interorganisational relationship (Kang et al. , 2020) Selection of competitive resources using resource-based view (RBV) vs utilization of internal and external competencies through dynamic capabilities theory (Wang and Rajagopalan, 2015). Alliance knowledge integration (Kale and Singh, 2007)
Definition: Alliance Capability 01 Definition Allied firms’ capacity in managing, integrating, and learning from their relationship to achieve mutual competitive advantage. 02 The stock of alliance capability is accumulated from the amalgamations of processes, resources, and competencies that are essential for alliance success. 03 Alliance capability can either be observed at the macro-level or micro-level of the organization Kohtamäki, Rabetino and Möller (2018). 8
Macro-level vs Micro-level Processes Within the context of universityindustry R&D alliances Micro-level Processes Macro-level Processes • • Occur at the enterprise, industrial and policymaker levels. Examples: Formation of alliances based on firm’s characteristics and technological compatibility, alliance partners’ market positioning and also national triple helix innovation ecosystem. • Occur among individuals. • Examples: activities (e. g. joint research projects), mechanisms (joint steering committees), and procedures (project management system) to coordinate collaborative efforts, cultivate interpersonal trust, and also facilitate interfirm alliance learning among individual partners. Need to delve deeper into specific micro-level processes which form a large part of alliance capability in university-industry R&D alliances. Although the macro-level and micro-level processes are often being segregated, studies had emphasized how micro-level processes can eventually influence the achievement of macro-level processes (Felin et al. , 2015). Based on this argument, this study is interested to first explore the dynamics of micro-level processes of alliance capabilities in Malaysian university-industry R&D alliances. This investigation will be done within the framework of practice theory. 9
Dimensions of Alliance Capability Kohtamäki, Rabetino and Möller (2018). Alliance Management Capability The firm’s ability to set and align shared targets, building an alliance structure, execute tasks and evaluate the effectiveness of the alliance processes (Niesten and Jolink, 2015) Alliance Integration Capability Structural and social integrations between alliance partners via relational capability and joint team production (Pham et al. , 2017). Alliance Learning Capability Alliance firms’ ability to learn from each other through acquisition, absorption and exploitation of knowledge using mechanisms such as joint training and development programs, knowledge databases and development of various learning tools 10
• 3 The Practice Theory 11
Definition: Practice Theory Definition Practices- accepted ways of doing things, shared between individual actors in the organization and eventually institutionalized over time. Objective Explains how individual actions and activities are embedded within the broader organizational and societal practices (Feldman and Orlikowski, 2011). Difference Antithesis of methodological individualism; which inclines to describe behaviors purely in the form of separate individuals or groups of individuals (Gross, 2009). Human Actors A human actor is not a discrete individual disconnected from the organizational environment. Instead, he/she is a social being whose decisions and behaviors are shaped by the practices in which he/she is immersed (Vaara and Whittington, 2012). 12
Practice Theory In R&D Alliances Three aspects of Practice Theory (Jarzabkowski and Spee, 2009) Practices Various tools, norms, and procedures of joint research project e. g. state-of-the-art technologies, project management manuals, budget systems and intellectual property policies. Praxis Human activities involved in the R&D alliances, e. g. joint steering committee meetings, technology transfers or product development processes. Practitioners All those individuals from the university and industry who are directly or indirectly involved in the R&D alliances. All these three aspects have enabling and constraining effects on one another. 13
Previous Research La Rocca et al. , (2017) adopted Practice Theory to analyse: . the interdependency of practices in interorganisational relationship. the fluidity of the different roles (praxis) that human actors (practitioners) and materials artefacts play in the business relationship. the reproduction of micro-level activities and material artefacts resulting from the interorganisational relationship that can further contribute to superior organisational performance. Hence, practice theory is able to demonstrate the inter-link of individual R&D partners’ routines and joint practices; and also describe the role of individual partners in executing various activities that contribute to the success of R&D alliances. 14
The Interplay of Alliance Capability • 4 Dimensions 15
H 1 16
Interaction Effect In Figure 1, alliance integration capability might interact the relationship between alliance management capability and alliance learning capability (Kohtamäki, et. al. , 2018). • Collective goal setting, activities coordination, structural configuration, and regular alliance performance evaluation (Practices) • Dedicated management function to coordinate tasks, configure processes and manage alliance relationship (Practices) • Multiple sets of activities (praxis) carried out by individual R&D partners (practitioners) Alliance Management Capability (AMC) Alliance Integration Capability (AIC) • The practices and praxis in AMC will enhance partners’ mutual ability in integrating effective social and structural ties under AIC. • Structural ties in AIC are fostered through relationship structures and integration of R&D activities and work procedures from AMC. (Kohtamäki et al. , 2013) • Knowledge is generated through combination of knowledge from within and outside of firms’ structural boundaries. • K-generation success depends on the quality of structural & social integration between partners (Wang et al. , 2019). • To ensure effective ALC, knowledge can be systematically disseminated throughout the organization via K-sharing platforms (structural integration) and exploitation of shared knowledge in collaborative project teams (social integration). Alliance Learning Capability (ALC) 17
Proposition • Using Practice Theory as theoretical foundation, this study could address the challenges that hamper Malaysian university-industry R&D alliances at the micro-level processes. • The ability of universities and industries in aligning their mutual goals and actions may assist in developing alliance management capability, thus eliminating barriers such as differences in priority. • Consequently, strong interactions and shared ownership of the alliances’ processes will then enable partners to develop alliance integration capability. • Strong relational bond and joint action between individual R&D partners will allow the creation of trust that subsequently addresses the lack of trust issues between universities and industries. • Therefore, the ability of alliance partners to develop trust between them will then facilitate alliance learning capability. Henceforth, based on the discussion above, the following proposition is presented: P 1: Alliance integration capability mediates the relationship between alliance management capability and alliance learning capability. 18
• 5 Proposed Research Design 19
Proposed Research Design Subset of Main Study A subset of a larger study to develop a framework on how micro-level alliance capabilities influence R&D alliance success. Unit of Analysis Will analyze the dyadic relationship between individual university researchers and their industry partners Research Strategies The study will adopt a concurrent mixed-method approach. Data Collection Qualitative study (semi-structured interviews, thematic analysis) + Quantitative study (survey questionnaire, statistical analysis)- run concurrently Integration Both studies will integrate at the interpretation stage. To compare results and add depths to the scope of the findings. Using practice theory as the foundation, it is hoped that this study will be able to develop a composite model to explain the interplay of the alliance capability dimensions and their influence on R&D alliance success. 20
References Azman, N. , Sirat, M. , Pang, V. , Lai, Y. M. , Govindasamy, A. R. and Din, W. A. (2019). Promoting university–industry collaboration in Malaysia: stakeholders’ perspectives onexpectations and impediments. Journal of Higher Education Policy and Management, 41(1), pp. 86 -103. Feldman, M. S. and Orlikowski, W. J. (2011). Theorizing practice and practicing theory. Organization Science, 22(5), pp. 1240 -1253. Felin, T. , Foss, N. J. and Ployhart, R. E. (2015). The microfoundations movement in strategy and organization theory. The Academy of Management Annals, 9(1), pp. 575632. Gross, N. (2009). A pragmatist theory of social mechanisms. American Sociological Review, 74(3), pp. 358 -379. Hájek, P. and Stejskal, J. (2018). R&D cooperation and knowledge spillover effects for sustainable business innovation in the chemical industry. Sustainability, 10(4), p. 1064. Jarzabkowski, P. and Paul Spee, A. (2009). Strategy‐as‐practice: A review and future directions for the field. International Journal of Management Reviews, 11(1), pp. 69 -95. Jongbloed, B. (2015). Universities as hybrid organizations: Trends, drivers, and challenges for the European university. International Studies of Management & Organization, 45(3), pp. 207 -225. Kale, P. and Singh, H. (2007). Building firm capabilities through learning: the role of the alliance learning process in alliance capability and firm‐level alliance success. Strategic Management Journal, 28(10), pp. 981 -1000. Kang, M. , Lee, G. , Hwang, D. W. , Wei, J. and Huo, B. (2020). Effects of cross-functional integration on NPD success: mediating roles of customer and supplier involvement. Total Quality Management & Business Excellence, pp. 1 -17. Kohtamäki, M. , Partanen, J. and Möller, K. (2013). Making a profit with R&D services—The critical role of relational capital. Industrial Marketing Management, 42(1), pp. 7181. Kohtamäki, M. , Rabetino, R. and Moller, K. (2018). Alliance capabilities: A review and research agenda. Industrial Marketing Management, 68, pp. 188 -201. La Rocca et al. , (2017) La Rocca, A. , Hoholm, T. and Mørk, B. E. (2017). Practice theory and the study of interaction in business relationships: Some methodological implications. Industrial Marketing Management, 60, pp. 187 -195. Nielsen, B. B. (2003). An empirical investigation of the drivers of international strategic alliance formation. European Management Journal, 21(3), pp. 301 -322. Niesten, E. and Jolink, A. (2015). The impact of alliance management capabilities on alliance attributes and performance: a literature review. International Journal of Management Reviews, 17(1), pp. 69 -100. Pham, T. S. H. , Le Monkhouse, L. and Barnes, B. R. (2017). The influence of relational capability and marketing capabilities on the export performance of emerging market firms. International Marketing Review. Vaara, E. and Whittington, R. (2012). Strategy-as-practice: Taking social practices seriously. The Academy of Management Annals, 6(1), pp. 285 -336. Wang, X. , Dolfsma, W. and van der Bij, H. (2019). Individual performance in a coopetitive R&D alliance: motivation, opportunity and ability. R&D Management, 49(5), pp. 762 -774. Wang, Y. and Rajagopalan, N. (2015). Alliance capabilities: Review and research agenda. Journal of Management, 41(1), pp. 236 -260. 21
Acknowledgments This research is funded by the Fundamental Research Grant Scheme (FRGS) Cycle 2018 (FRGS/1/2018/SS 03/MMU/02/4) by the Malaysian Ministry of Higher Education. 22
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