Links Between Business Competence and Learning Networks

3.12.2010Riitta Rissanen, riitta.rissanen@savonia.fi

Innovative and
Learning Clusters
3.12.2010
Links between business competence
and learning networks –
Theoretical model
Ph.D. (Educ.), M.Sc. (Econ.)
Riitta Rissanen, Finland

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 interaction between these two
concepts.

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)

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).

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).

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.

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. .

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.

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.

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.

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.

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).

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.

Links between business
competence and learning
networks - conceptual framework
¢ Learning network is a social business
context, which comprises of following
elements;
l innovativeness,
l trust between business partners,
l learning ability of a company,
l drive/need to business excellence,
l need to have new competences.

Elements of Learning
Networks Context, Figure1
Learning Networks Context
Innovativiness Trust
between
business
partners
Learning
ability of a
company
Drive/need to
business
exellence
Need to have
new
competences

Elements of Business
Competence
¢ Business competence comprises of
elements as follows:
l customer and market capital (= ability and
assets to understand user-activities on
markets),
l knowledge management skills,
l network management skills,
l ability to create value and
l strategic thinking.

Elements of Business
Competence, Figure 2
Business Competence
Network
management
skills
Customer
and market
capital
Knowledge
management
skills
Ability
to
create
value
Strategic
thinking

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.

competence and learning networks
- conceptual framework
¢ The hypothesis is presented as
follows:
l (H1): “The learning network context
is positively associated to certain
business competences”

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).

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.

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

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”.

THANK YOU FOR YOUR INTEREST!

Links Between Business Competence and Learning Networks

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