Abstract

Abstract We develop a model of the micro-process of knowledge acquisition, dissemination, and application in the networks of alliances that have become important sources of external knowledge for multinational firms. Based on the concept of communities of practice as sources of highly tacit know-how, this model addresses the use of alliances with local partners to acquire tacit knowledge on a sub-unit level and to then share this knowledge throughout the firm via an internal network of community-level alliances. We suggest that the supposed advantage of multinational firms in accessing and reconstituting knowledge from widely spread sources is composed of multiple micro-processes at sub-unit levels, and therefore much more complex than usually presented.

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