Knowledge management in production alliances

Abstract.This paper develops a managerial model of production network organizations (PNOs), inter-firm alliances for product development and delivery, in which inter-firm network structure and knowledge management practices play a major role in venture performance. The paper addresses the issue of alignment between the adopted network structure, the scope of the joint production task, and consequent inter-firm information flow requirements, hypothesizing that venture performance is a joint function of network structure and task integration scope. In situations with a difficult alignment between the chosen network structure, joint task scope, and information flow requirements, knowledge management investments across the PNO are proposed as a moderating factor leading to improved venture performance. The paper demonstrates the proposed model with three case studies, providing preliminary verification of the key proposition that knowledge management interventions can mediate the impact of loose integrating structures for joint production ventures that are undertaking complex joint tasks.