Skip to main content
Log in

Influence of Tie Strength and Behavioural Factors on Effective Knowledge Acquisition: A Study of Korean New Product Alliances

Asian Business & Management Aims and scope Submit manuscript

Abstract

We investigate the influence of tie strength and the mediating effect of behavioural factors on knowledge acquisition in new product development alliances in the Korean machinery and electronics industries. Tie strength on the operational level, as measured by interaction intensity and intimacy between partners' project managers, was found to enhance knowledge acquisition, whereas the depth and length of firm-level ties did not. Moreover, the influence of interaction intensity and intimacy on knowledge acquisition was mediated by communication quality and fairness, suggesting that operational-level tie strength becomes less relevant for knowledge acquisition when good communication and perceptions of fairness between alliance partners have been established. Taken together, when knowledge acquisition is the objective, behavioural factors seem to play a more prominent role than tie strength in Korean new product alliances.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price includes VAT (Canada)

Instant access to the full article PDF.

Institutional subscriptions

Figure 1

References

  • Adler, P.S. and Kwon, S.-W. (2002) ‘Social capital: prospects for a new concept’, Academy of Management Review 27 (1): 17–40.

    Google Scholar 

  • Anderson, J.C. and Narus, J.A. (1990) ‘A model of distributor firm and manufacturer firm working partnerships’, Journal of Marketing 54 (1): 42–58.

    Article  Google Scholar 

  • Baron, R.M. and Kenny, D.A. (1986) ‘The moderator–mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations’, Journal of Personality and Social Psychology 51 (6): 1173–1182.

    Article  Google Scholar 

  • Bruce, M., Leverick, F., Littler, D. and Wilson, D. (1995) ‘Success factors for collaborative product development: a study of suppliers of information and communication technology’, R&D Management 25 (1): 33–44.

    Article  Google Scholar 

  • Bstieler, L. (2006) ‘Trust formation in collaborative new product development’, Journal of Product Innovation Management 23 (1): 56–72.

    Article  Google Scholar 

  • Chang, S.-J. (2003) Financial Crisis and Transformation of Korean Business Groups: The Rise and Fall of Chaebols, Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Chung, S., Singh, H. and Lee, K. (2000) ‘Complementarity, status similarity and social capital as drivers of alliance formation’, Strategic Management Journal 21 (1): 1–22.

    Article  Google Scholar 

  • Contractor, F.J. and Lorange, P. (2002) Collaborative Strategies and Alliances in International Business, Amsterdam: Elsevier.

    Google Scholar 

  • Culnan, M.J. and Armstrong, P.K. (1999) ‘Information privacy concerns, procedural fairness and impersonal trust: an empirical investigation’, Organisation Science 10 (1): 104–115.

    Article  Google Scholar 

  • Das, T.K. and Teng, B.-S. (2002) ‘Instabilities of strategic alliances: an internal tensions perspective’, Organisation Science 11 (1): 77–101.

    Article  Google Scholar 

  • Dwyer, R.F., Schurr, P.H. and Oh, S. (1987) ‘Developing buyer–seller relationships’, Journal of Marketing 51 (2): 11–27.

    Article  Google Scholar 

  • Dyer, J.H. and Chu, W. (2000) ‘The determinants of trust in supplier–automaker relationships in the U.S., Japan, and Korea’, Journal of International Business Studies 31 (2): 259–285.

    Article  Google Scholar 

  • Dyer, J.H. and Chu, W. (2003) ‘The role of trustworthiness in reducing transaction costs and improving performance: empirical evidence from the United States, Japan and Korea’, Organisation Science 14 (1): 57–68.

    Article  Google Scholar 

  • Eom, M., Choi, C. and Lee, C. (2005) 2005-nyeondo hanguk oi gisul hyeoksin chosa: checho-ob bumun(2005 Korean Innovation Survey: the Manufacturing Sector) Chosa Yongu 2005–05, Seoul: Gwahak Gisul Cheongjek Yonguwon.

    Google Scholar 

  • Granovetter, M. (1973) ‘The strength of weak ties’, American Journal of Sociology 78 (6): 1360–1380.

    Article  Google Scholar 

  • Hagedoorn, J. (1993) ‘Understanding the rationale of strategic technology partnering: inter-organisational modes of co-operation and sectoral differences’, Strategic Management Journal 14 (6): 371–385.

    Article  Google Scholar 

  • Hagedoorn, J., Cloodt, D. and Van Kranenburg, H. (2006) ‘The strength of R&D network ties in high-tech industries — A multi-dimensional analysis of the effects of tie strength on technological performance’, Paper presented at the Academy of International Business Conference, Beijing, 23–26 June.

  • Hair, J.E., Anderson, R.E., Tatham, R.L. and Black, W.C. (1998) Multivariate Data Analysis 5th edn., Upper Saddle River: Prentice-Hall.

    Google Scholar 

  • Hall, E.T. (1976) Beyond Culture, New York: Anchor.

    Google Scholar 

  • Hansen, M.T. (1999) ‘The search-transfer problem: the role of weak ties in sharing knowledge across organisation sub-units’, Administrative Science Quarterly 44 (1): 82–111.

    Article  Google Scholar 

  • Hofstede, G. (2001) Culture's Consequences 2nd edn., Thousand Oaks: Sage.

    Google Scholar 

  • Inkpen, A.C. (1998) ‘Learning and knowledge acquisition through international strategic alliances’, Academy of Management Executive 12 (4): 69–80.

    Google Scholar 

  • Kessler, E.H., Bierly, P.E. and Gopalakrishnan, S. (2000) ‘Internal vs. external learning in new product development: effects on speed, costs and competitive advantage’, R&D Management 30 (3): 213–223.

    Article  Google Scholar 

  • Kim, L. (1997) Imitation to Innovation: The Dynamics of Korea’s Technological Learning, Boston: Harvard Business School.

    Google Scholar 

  • Kim, L. (1998) ‘Crisis construction and organisational learning: capability building in catching-up at Hyundai Motors’, Organisation Science 9 (4): 506–521.

    Article  Google Scholar 

  • Koka, B.I. and Prescott, J.E. (2002) ‘Strategic alliances viewed as social capital: a multidimensional view’, Strategic Management Journal 23 (9): 795–816.

    Article  Google Scholar 

  • Krackhardt, D. (1992) ‘The Strength of Strong Ties: the Importance of philos in Organisations’, in N. Nohria and R.G. Eccles (eds.) Networks and Organisations: Structure, Form, and Action, Boston: Harvard Business School, pp. 216–239.

    Google Scholar 

  • Kumar, N., Scheer, L.K. and Steenkamp, J.E.M. (1995) ‘The effects of supplier fairness on vulnerable resellers’, Journal of Marketing Research 32 (1): 54–65.

    Article  Google Scholar 

  • LaBahn, D.W. and Krapfel, R. (1994) ‘Early supplier involvement in new product development: a model of the suppliers' perspective’, ISBM Working Paper, 12-1994, Institute for the Study of Business Markets, Pennsylvania State University.

  • Lee, A.-R. (2003) ‘Down and down we go: trust and compliance in Korea’, Social Science Quarterly 84 (2): 329–343.

    Article  Google Scholar 

  • Levin, D.Z. and Cross, R. (2004) ‘The strength of weak ties you can trust: the mediating role of trust in effective knowledge transfer’, Management Science 50 (11): 1477–1490.

    Article  Google Scholar 

  • Levin, D.Z., Whitener, E.M. and Cross, R. (2006) ‘Perceived trustworthiness of knowledge sources: the moderating impact of relationship length’, Journal of Applied Psychology 91 (5): 1163–1171.

    Article  Google Scholar 

  • Lim, C. (2006) ‘Korean National System of Innovation and FDIs’, in Samsung Economic Research Institute (ed.) R&D Interplay in Northeast Asia: Global Corporate Strategy and Host Countries’ National Innovation System, Proceedings of the R&D Conference, Seoul, 24 February 2006.

  • Marsden, P.V. and Campbell, K.E. (1984) ‘Measuring tie strength’, Social Forces 63: 482–501.

    Article  Google Scholar 

  • Mohr, J. and Spekman, R. (1994) ‘Characteristics of partnership success: partnership attributes, communication behaviour and conflict resolution techniques’, Strategic Management Journal 15 (2): 135–152.

    Article  Google Scholar 

  • Morgan, R.M. and Hunt, S.D. (1994) ‘The commitment–trust theory of relationship marketing’, Journal of Marketing 58 (3): 20–38.

    Article  Google Scholar 

  • Mowery, D.C., Oxley, J.E. and Silverman, B.S. (1996) ‘Strategic alliances and inter-firm knowledge transfer’, Strategic Management Journal 17: 77–91.

    Article  Google Scholar 

  • Nonaka, I. and Takeuchi, H. (1995) The Knowledge-Creating Company, Oxford: Oxford University Press.

    Google Scholar 

  • Peng, M.W. and Luo, Y. (2000) ‘Managerial ties and firm performance in a transition economy: the nature of micro-macro links’, Academy of Management Journal 43 (1): 486–501.

    Article  Google Scholar 

  • Podsakoff, P.M., MacKenzie, S.B., Lee, J.-Y. and Podsakoff, N.P. (2003) ‘Common method biases in behavioural research: a critical review of the literature and recommended remedies’, Journal of Applied Psychology 88 (2): 879–903.

    Article  Google Scholar 

  • Rindfleisch, A. and Moorman, C. (2001) ‘The acquisition and utilisation of information in new product alliances: a strength-of-ties perspective’, Journal of Marketing 65 (2): 1–18.

    Article  Google Scholar 

  • Ring, P.S. and Van de Ven, A.H. (1994) ‘Developmental processes of co-operative inter-organisational relationships’, Academy of Management Review 19 (1): 90–118.

    Google Scholar 

  • Shin, J.-S. and Jang, S.-W. (2005) ‘Creating first-mover advantages: the case of Samsung Electronics’, SCAPE Working Paper 2005/13, Dept. of Economics, National University of Singapore.

  • Standifird, S.S. and Marshall, R.S. (2000) ‘The transaction cost advantage of Guanxi-based business practices’, Journal of World Business 35 (1): 21–42.

    Article  Google Scholar 

  • Uzzi, B. (1997) ‘Social structure and competition in inter-firm networks: the paradox of embeddedness’, Administrative Science Quarterly 42 (1): 35–67.

    Article  Google Scholar 

  • Uzzi, B. and Lancaster, R. (2003) ‘Relational embeddedness and learning: the case of bank loan managers and their clients’, Management Science 49 (4): 383–399.

    Article  Google Scholar 

  • von Hippel, E. (1986) ‘Lead users: a source of novel product concepts’, Management Science 32 (7): 791–805.

    Article  Google Scholar 

  • von Hippel, E. (1994) ‘‘Sticky information’ and the locus of problem-solving: implications for innovation’, Management Science 40 (4): 429–439.

    Article  Google Scholar 

  • Wucherer, K. (2006) ‘Business partnering — a driving force for innovation’, Industrial Marketing Management 35 (1): 91–102.

    Article  Google Scholar 

  • Yang, I. (2006) ‘Jeong exchange and collective leadership in Korean organizations’, Asia Pacific Journal of Management 23 (3): 283–298.

    Article  Google Scholar 

  • Yee, J. (2000) ‘The social networks of Koreans’, Korea Journal 40 (1): 325–352.

    Google Scholar 

  • Yum, J.O. (1988) ‘The impact of Confucianism on interpersonal relationships and communication patterns in East Asia’, Communication Monographs 55 (4): 374–388.

    Article  Google Scholar 

Download references

Acknowledgements

We thank participants at the EAMSA conference 2006 and two anonymous reviewers for their helpful feedback on earlier versions of this paper.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Martin Hemmert.

Appendix: Multiple item key measures

Appendix: Multiple item key measures

Knowledge acquisition (α=0.80)

Through this partnership, we learned a lot about how to develop new products.

Through this partnership, we learned a lot about end-users’ product needs.

Through this partnership, we gained a lot of insights about key tasks involved in the production process.

Interaction intensity at operational level (α=0.86)

The working relationship between us and the partner's representatives could be characterized as close.

Our team members maintained a lot of advice-seeking relations with the partner's representatives.

Interaction intimacy at operational level (α=0.69)

We had a lot of interaction with the partner's representatives, at times even on evenings or weekends.

At times, we interacted even on private or personal issues with the partner's representatives.

Depth of ties at firm level (α=0.76)

Prior to this product development project

  • our firm did a lot of business with this partner company,

  • our firm worked a lot on development projects with this partner company,

  • the history of the relationship between our firm and the partner company could be characterized as stable.

Communication quality (α=0.92)

The communication between us and the partner representatives was

  • untimely/timely,

  • inaccurate/accurate (you can rely on it),

  • inadequate/adequate,

  • incomplete/complete.

Perceived fairness (α=0.90)

  • Disagreements were fairly resolved.

  • Benefits were evenly shared.

  • Benefits were fair compared to efforts.

  • Benefits were fair compared to partner.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Bstieler, L., Hemmert, M. Influence of Tie Strength and Behavioural Factors on Effective Knowledge Acquisition: A Study of Korean New Product Alliances. Asian Bus Manage 7, 75–94 (2008). https://doi.org/10.1057/palgrave.abm.9200245

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/palgrave.abm.9200245

Keywords

Navigation