Inter‐firm sharing of process knowledge: exploring knowledge markets

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Abstract
Markets and communities are two modalities of knowledge exchange between firms; and this study concludes with a model that addresses the tension between the two modalities. The model resulted from an exploratory study conducted under the umbrella of a national consortium, using the methodology of participatory action research. The study involved three large multinational firms, where one firm supplied knowledge of three different processes used in product development to two other non‐competitive firms outside their supply chain. The knowledge was shared within the framework of an intervention that included the following: (1) individual work with process‐related course materials via the web or compact disc, followed by (2) interactive group sessions supported by videoconference facilities and led by a process expert from the supplying firm. Empirical data were gathered by interviewing participants before and after the intervention, and by observing interactive group sessions. Findings from the empirical data describe rationales for inter‐firm sharing of process knowledge, which illustrate a market modality of exchange; and describe practices for effective knowledge sharing, which illustrate aspects of a community modality of exchange. The model induced from these findings compares the situational setting, constellation of meanings and associated knowledge sharing practices for both modalities of exchange: market and community. Copyright © 2002 John Wiley & Sons, Ltd.

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