Helping to learn: governance of knowledge-sharing in the Aurora preferred suppliers alliance network

The learning benefits offered by strategic alliances make the effective governance of knowledge-sharing between collaborative partners a key element of managing partnership networks. This research explored the question of how a firm’s governance of its alliance network facilitates knowledge-sharing about effective collaboration between the hub or broker firm and network members. The study examined the operation of Aurora Energy’s preferred suppliers alliance network between 1992 and 2005. The Aurora preferred suppliers network operates in Tasmania, an island state located off the south coast of Australia and is a hub-and-spoke network of dyadic alliances between Aurora Energy, an energy company, and 14 retailers of electrical heating appliances. The study found that Aurora’s governance of network conditions facilitated knowledge-sharing which generated three distinct forms of value: beneficial alliance outcomes; new knowledge about utilising alliance relationships; and new functional skills.