Using learning networks to enable industrial development

Abstract

PurposeThe purpose of this paper is to explore the dynamics of inter‐firm learning and the ways in which “learning networks” can be established and facilitated. Underlying this is the argument that significant traction on the problem of organizational learning – in this case around process innovations – can be gained through deploying structured and purposeful inter‐organizational learning networks.Design/methodology/approachThe paper builds on three case studies drawn from the experience of firms in South Africa, covering both vertical (supply chain) and horizontal (cross‐sector) groupings in automotive components and timber products.FindingsThe paper reports on the ways in which the learning networks were set‐up and operated, mapping this experience against a model framework which emphasizes a number of core operational processes. It suggests that the success of both the automotive component groupings and the failure of the timber products network can be explained through reference to this model and the different approaches taken to managing these core processes.Research limitations/implicationsThe research reported here draws on a small number of detailed cases and further work is needed to verify the model and the guidelines for action.Practical implicationsThe paper highlights guidelines for policy agents – for example, in business support agencies or regional development authorities – in setting up and running effective learning networks.Originality/valueThe paper contributes to theory around inter‐organizational networking and organizational learning and provides micro‐level detail of how learning networks can be established and sustained.

Shared learning in supply networks: evidence from an emerging market supply network

“…Shared learning results in improvements to such routines that support the development of the network. Our findings differs from previous work on shared learning in that it emphasises the development of shared learning capabilities through the inter-firm problem solving mechanisms rather than through teacher/learner environments where the core firm is framed as the 'educator' of suppliers (see for example, Morris et al 2006;Spekman et al 2002;Zhao et al 2004). …”

“…Perceived network success increased when firms share learning relating to the state and type of network resources and capabilities (Morris et al 2006 In this example, the structure of the network is seen to directly impact on the shared learning that is likely to take place. At an operational level, the structure acts as an important part of the mechanism that is likely to facilitate shared learning (Bångens and Araujo 2002;Bessant et al 2003).…”

“…However, despite the numerous references in the literature to the need for shared learning, very little research has focused on what learning should be shared and how that might benefit the network. Further, what literature there is, discusses shared learning from a multi-site learning and knowledge transfer perspective (Belderbos et al 2008;Bond et al 2008;Mesquita et al 2008) or a shared learning in supplier development programmes and supplier associations perspective (Morris et al 2006;Spekman et al 2002). Much of this literature adopts a teacher/learner approach.…”

“…This was particularly evident where interviewees had benefited directly from the successful training of network members, through increased satisfaction with the work carried out for them by their supplier. As one interviewee observed: The training programme is akin to Airco taking the role of 'educator' (Morris et al 2006;Zhao et al 2004). However, an opportunity for shared learning is created by bringing people together for the training programme.…”

Innovation Management and Dynamic Capability

“…Regional development agencies -for example in South Africa or now try and use networks and clusters as a key aid to helping stimulate economic growth through innovation. (Morris, Bessant et al 2006) Using a process of benchmarking to identify key areas for development, linked to regular inputs of training and plant level change projects the industry has managed to close the gap against suppliers from outside the country to the extent that in a number of key areas the country is a net exporter. Significantly whilst the sector as a whole has been going through a process of rapid learning and development the rate of improvement amongst firms which are members of this actively managed learning network appear to be significantly higher than the industry average.…”