Abstract

This study developed a model for alliance strategy activities that will be implemented in research and development contractual projects between developed and developing country energy companies. This paper used quantitative research that included a survey of PERTAMINA, an Indonesian energy company. This alliance process model divided its activities into three phases: 1) the pre-project phase: the partner is selected based on knowledge factors, including their competences, capabilities, experience and expertise, in addition to resource factors, including their complementary assets, specific objectives, risk sharing and cost sharing; 2) the project phase: the innovation activities are performed, which involves a knowledge management system as a moderating component with factors, including a technology transfer process, technology support for knowledge management, knowledge sharing and absorptive capacity, and organisation structure factors, including team-building processes, partner roles, open communication, and decision-making processes; 3) the post-project phase: commercialised innovation, which is based on factors including knowledge, intellectual property rights (IPR), and innovativeness as a source of competitive advantage. The theoretical contributions of this study, due to the innovation process has a high uncertainty aspect, alliance in innovation activities are better conducted in contractual project form without entail the share of ownership.

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