Alliance-Based Model of Knowledge Creation and Innovation: The Case of EI-Log Development

This paper proposes a new pattern of knowledge creation and innovation in a purposeful, firm-centered, multiparty involved, collaborative system, as an alternative to a firm-alone one. Using the case of the El-Log development project in oil industry, we build a model of alliance-based, integrated knowledge creation and innovation. Our model suggests that the innovation process can be effectively organized as an integrated process of collaborative-learning and collaborative-creation driven by the shared values and common benefits. We conclude by offering some theoretical and empirical implications.