Innovative and Learning Clusters 3.12.2010

1. Riitta Rissanen, riitta.rissanen@savonia.fi

2. Innovative and Learning Clusters3.12.2010 Links between business competence and learning networks – Theoretical model Ph.D. (Educ.), M.Sc. (Econ.) Riitta Rissanen, Finland Riitta Rissanen, riitta.rissanen@savonia.fi

3. Introduction • The aim of this conference paper is to discuss about the concept of business competence and learning networks and the links and interaction between these two concepts. • This paper attempts to answer to following questions; a) how the concept of business competence and the concept of learning network is defined and verified empirically in previous research an b) what are the links and interactionbetween these two concepts. Riitta Rissanen, riitta.rissanen@savonia.fi

4. Concept of business competence • It can be used in a connection of an individual, a group of people or a company/organization. • Individual competence comprises of several factors, e.g. skills, knowledge and learning capacity of a person (Sternberg, 2005) Riitta Rissanen, riitta.rissanen@savonia.fi

5. Concept of business competence • Competence can be seen as “company’s ability to sustain coordinated deployments of assets and capabilities in ways that help the organisation to achieve its goals (Sanches, 2001)”. • In socio-cognitive perspective, the competencies are seen to depend on “shared beliefs, how things are and how they should be (Argyris & Schön, 1974). Riitta Rissanen, riitta.rissanen@savonia.fi

6. Concept of business competence • Competences can be seen as an individual asset, or inter-individually constructed in a social context (Ellström, 1998). • The value and meaning of the competence is measured in a certain business context, therefore the nature of the competences can be seen context-bound (Rissanen, 2003). Riitta Rissanen, riitta.rissanen@savonia.fi

7. Concept of business competence • To summarise, the business competence perspective emphasises the need for learning organisation and the need to exploit knowledge and create new capabilities, so called patterns of action, which company can use to get things done. • In general, business competences in organization level are based on organizational learning and knowledge management. Riitta Rissanen, riitta.rissanen@savonia.fi

8. The concept of learning networks • Engeström (2004) presents the importance of co-configuration work. Co-configuration requires knowledge networking, “knotworking” in Engeström` s (2004) language. • E.g. co-configuration work means learning alliances and multiple collaborating producers and customers, who are learning mutually from the interaction. . Riitta Rissanen, riitta.rissanen@savonia.fi

9. The concept of learning networks • As well as the organizations can learn (Maula, 2006), also the networks can be seen as learning systems in certain criteria. • Tidd, Bessant and Pavitt (2005, 435) argues, that one of the primary function of a new corporate venture is to learn new competences. Riitta Rissanen, riitta.rissanen@savonia.fi

10. The concept of learning networks • Lave and Wenger (1991) coined the term “communities of practices”. • This concept can be seen as “an early root” for the concept of “user-oriented innovation systems”, where the user/participants are actors, who create everyday solutions independently based on learning. Riitta Rissanen, riitta.rissanen@savonia.fi

11. The concept of learning networks • Intellectual capital , Lönnqvist, Kujansivu and Antola (2005) • Bontis, Dragonetti, Jacobsen, Roos (1999) defines intellectual capital as a human capital and structural capital. Structural capital involves e.g. companies’ relationships. •  Arhio (2007, 54) sees that learning networks and innovation procedures are elements of social capital. Riitta Rissanen, riitta.rissanen@savonia.fi

12. The concept of learning networks • Knowledge sharing and creation is a key element in partnerships and networks (von Krogh & Roos, 1996). • In this paper organizational learning, as well as learning networks, is seen as social system, which requires certain kind of competences. Riitta Rissanen, riitta.rissanen@savonia.fi

13. The concept of learning networks • Knowledge sharing and making the experience shared is a challenge in managing innovative, learning organizations and networks (Senge, 1990; Maula, 2006; Hallikas, Kärkkäinen & Lampela, 2009). Riitta Rissanen, riitta.rissanen@savonia.fi

14. The concept of learning networks • To summarize, the learning network concept has its roots on the idea of an “organization as an open system”, which is characterized by different kind of linkages to business environment. Riitta Rissanen, riitta.rissanen@savonia.fi

15. Links between business competence and learning networks - conceptual framework • Learning network is a social business context, which comprises of following elements; • innovativeness, • trust between business partners, • learning ability of a company, • drive/need to business excellence, • need to have new competences. Riitta Rissanen, riitta.rissanen@savonia.fi

16. Learning Networks Context Need to have new competences Learning ability of a company Innovativiness Trust between business partners Drive/need to business exellence Elements of Learning Networks Context, Figure1 Riitta Rissanen, riitta.rissanen@savonia.fi

17. Elements of Business Competence • Business competence comprises of elements as follows: • customer and market capital (= ability and assets to understand user-activities on markets), • knowledge management skills, • network management skills, • ability to create value and • strategic thinking.  Riitta Rissanen, riitta.rissanen@savonia.fi

18. Elements of Business Competence, Figure 2 Business Competence Customer and market capital Strategic thinking Network management skills Ability to create value Knowledge management skills Riitta Rissanen, riitta.rissanen@savonia.fi

19. Links between business competence and learning networks - conceptual framework • I presume that learning network context is likely to have impact on certain generic business competences (Figure 1 and Figure 2). • To sum up, effective linking of elements of learning networks can contribute to business competence. Riitta Rissanen, riitta.rissanen@savonia.fi

20. Links between business competence and learning networks - conceptual framework • The hypothesis is presented as follows: • (H1): “The learning network context is positively associated to certain business competences”  Riitta Rissanen, riitta.rissanen@savonia.fi

21. Methodology and empirical study design • The links between business competence and learning networks is investigated by series of case studies, with the objective to identify the factors which support or either prevent the development of business competences in learning networks. • The basis of this research design is ”multiple case study & multiple units analysis” (Yin, 2000). Riitta Rissanen, riitta.rissanen@savonia.fi

22. Methodology and empirical study design • My first aim is to develop a measurement, a construction of a questionnaire, which shows several features of the phenomena (building evidence). • The second aim is to verify the data to the cases. • The final aim is to build a model, in which I compare the cases evidence to existing theories. Riitta Rissanen, riitta.rissanen@savonia.fi

23. Further research and discussion • The model focuses on business competence and learning network in meso and macro-level • leaves out the individual aspect of leadership and entrepreneurial behaviour or competences (motivation, attitudes, values etc.) • model doesn’t take into account how to manage and lead competences in certain business context. Riitta Rissanen, riitta.rissanen@savonia.fi

24. Further research and discussion • Verifying the elements of the model, the research findings can answer to the question of crucial linkages between learning networks and business competence. • This analysis is a first step in building a model of “content of business competence in learning networks”. Riitta Rissanen, riitta.rissanen@savonia.fi

25. THANK YOU FOR YOUR INTEREST! Riitta Rissanen, riitta.rissanen@savonia.fi