Orange Electric Plc Case Study

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Given fast technological change in the more advanced economies, closing the technological capability gap that separates Orange Electric Plc., is a necessary condition to put the latter on a path of sustainability. The importance of learning alliances to capability development places a premium on Orange Electric Plc.’s ability to identify, assimilate, and utilize a partner’s (Finland) knowledge. However, this is limited primarily to how they should be structured and managed. Therefore, it is important that such operational issues as when Orange Electric Plc. may need to form a joint venture to nurture learning and how successful alliances are managed day-to-day. It is proposed that Orange Electric Plc.’s absorptive capacity, its ability to…show more content…
There are four different but complementary dimensions of absorptive capacity: acquisition, assimilation, transformation, and exploitation. These four elements must progress chronologically (Gatignon & Anderson, 2008). Broadly speaking, there are two factors affecting Orange Electric’s absorptive capacity. One factor is internal factors, such as organizational structure, size, strategy, prior knowledge base, and organizational responsiveness; the other one is external factors, which include external knowledge environment and Orange’s position in knowledge…show more content…
Orange Electric has to decide the nature of the organizational structure as a functional organizational structure permits a high efficiency of absorption, but a limited scope and flexibility of absorption.  Cross-functional communication creates opportunity for the internal transfer of knowledge within Orange Electric. Better internal communication enhances social integration mechanisms, which lower the barriers to information-sharing and increase the efficiency of assimilation and transformation capabilities.  Organizational culture, especially the distribution of power, also has great influence on absorptive capacity. Organizational inertia states that organizations tend to stick to their existing strategies and have a natural tendency to resist change. This is the main impediment to Orange Electric Plc.’s ability to respond and adapt to changes in its environment and is a common obstacle to the use of transferred

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