¹Department of Business Administration, Kainan University, Taoyuan, Taiwan

Correspondence: Jih-Jeng Huang, No. 1 Kainan Road, Luzhu Shiang, Taoyuan 33857, Taiwan. Tel.: +886 3341 2500/625; Fax: +886 7499 2628; E-mail: jjhuang@mail.knu.edu.tw

Received 7 June 2007; Accepted 10 September 2008.

Abstract

From the resource-based view, strategic alliances can be defined by a long-term cooperative arrangement between two or more independent firms that exchange and share resources to gain market power and competitive advantage. Since knowledge has become the critical element for firms to achieve competitive advantage, one goal of strategic alliances can be realized by acquiring knowledge through partners. In this paper, the process of knowledge creation in strategic alliances is explained and clarified based on an evolutionary perspective. In addition, a mathematical representation is used to show how knowledge is created in strategic alliances, why firms are willing to create and share knowledge by entering into alliances, and what conditions are required to achieve successful knowledge creation under such arrangements.