3.12.2010Riitta Rissanen, [email protected]

3.12.2010Riitta Rissanen, [email protected]

Innovative and Learning Clusters3.12.2010

Links between business competence and learning networks –Theoretical modelPh.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. .



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.



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.



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.



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.



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).



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; innovativeness,trust between business partners, learning ability of a company, drive/need to business excellence, 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: 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.


Elements of Business Competence, Figure 2

Business Competence

Network management skills

Customer and market capital

Knowledge management skills

Ability to create value

Strategic thinking



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.



The hypothesis is presented as follows:

(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 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.


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!


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3.12.2010Riitta Rissanen, [email protected]