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Orange Electric Plc Case Study

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Orange Electric Plc Case Study
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…
Yet, their strategic value to the company will naturally erode over time (Judge& Ferris, 2009) as substitutes appear and new competitive problems emerge. Orange Electric Plc. can apply three methods for learning new external knowledge; passive, active, and interactive, and each provides a different type of knowledge. It is important to note that the very fact that the knowledge Orange Electric Plc. provide is articulable (observable) means that it is no longer rare, imperfectly traded, or costly to …show more content…
Typically, relocation could be the “removal” of a production unit to a low production cost country via outward FDI in Finland. Otherwise, it could be that the relocated production is contracted out to a foreign subcontractor without any FDI or removal of a production unit. Further, international production relocation can affect not only industrial plants but also services production, in particular those services the production of which requires some industrial goods such as electrical products

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