Learning to develop alliance capabilities: Knowledge sharing in the Aurora Preferred Suppliers Network

Strategic alliances have long been recognised as a valuable mechanism through which organisations can develop new capabilities. This study explores for the first time how an organisation’s governance of its alliance network facilitates knowledge sharing that improves network performance and develops alliance capabilities. The study examined the case of Aurora Energy, an energy company operating in Tasmania, Australia, to determine how Aurora managed knowledge-sharing in its Preferred Suppliers alliance network. It contributes to knowledge about alliance capability development by demonstrating how Aurora’s management of network conditions enabled Aurora and network members to share their emerging knowledge about collaboration and develop capabilities in network management and network participation. 1