ABSTRACT
Japanese firms dominate many parts of the semiconductor industry and they have formed many strategic alliances. The study shows how Japanese firms create knowledge through strategic alliances. A framework for understanding and analysing knowledge creation by alliance partners is proposed. There are three sequential processes – internalization, distribution and evolution. The framework is then illustrated with examples of knowledge creation by Japanese companies such as Toshiba, Hitachi, NEC and Fujitsu and contrasted with the lack of attention that Western companies pay to knowledge creation in strategic alliances. Because the alliances between Japanese and Western firms are frequently unbalanced, the view is developed that more balanced relationships would be desirable in the future.
