Knowledge Management in Alliances Between MNCs and SMEs: Evidence From the Pharmaceutical Field

Over the years several approaches and models have been developed in order to facilitate knowledge process but most of them recognize a high degree of personal commitment that involves mental models, personal beliefs, values and the process of reinventing oneself. Interestingly enough there seems to be a lack of literature on how to create it. Tools like data mining, brainstorming, problem solving approaches are well known, but how can we be sure that people will use them correctly? Ethical issues, cultural differences and misunderstanding could affect their effectiveness. Considering companies of different dimension like MNCs and SMEs, the differences become even bigger. Friulchem works as a SME in the field of R&D in the generic pharmaceutical field. Its business model is developed by recognizing business opportunities, finding partners for developing the project and proposing it to big multinational companies in the field. The company has worked on developing projects with major companies in the field like: TEVA, Mylan, Dr. Reddy’s and Sandoz. As project leader, the company has the role of creating the right commitment between partners. Aims, mental models, core values have to be shared and at the same time the project has to be led to maximizing effectiveness. A re-design of the company’s approach has been planned involving some scholars from Udine University (UD, Italy) and Florida Gulf Coast University (FL, USA). A review of the management control system (MCS) has been conducted applying the Simons model which recognizes the role of MCS for creating boundaries, sharing core values, creating a communicative environment and measuring the results reached. This paper represents a case of study and aims to: 1. Analyze literature on KM barriers, especially comparing MNCs and SMEs and MCS literature; 2. Draw a model which combines the role of MCS as a Knowledge Management Tool; 3. Present a case study where MCS has been used for reducing KM barriers among MNCs and SMEs.