Knowledge creation and inter-organizational relationships: the development of innovation in the railway industry

Purpose – The main purpose of the paper is to explore the relationship between the design of inter-organizational connections, the processes for knowledge creation and transfer, and innovation. The study aims to focus on the partnership between Firema, a medium-large Italian company in the rail industry sector, and TEST, a research consortium. Design/methodology/approach – The coordination model defining the cooperative relationship is interpreted in the temporary project network (TPN) framework. In applying the methodology of case study analysis, a semi-structured in-depth interview was used as a tool and, in particular, interviews aimed at privileged observers. Findings – TEST, acting as a meta-organizer, has the crucial role of organizing, governing and tuning the network of university departments, in synergy with Firema. The analysis draws attention to the possibility that TPNs are embedded in " latent networks " , in which inter-organizational ties are routinely activated in order to accomplish a specific project. Practical implications – The authors provide a pragmatic description of the TPN-related innovation activities and this may be valuable for managers and/or policy makers who wish to know about best practices in organizing networks directed to innovation. Practical considerations and methods that increase knowledge transfer while minimizing inter-organizational coordination costs are explored. Originality/value – This study was able to expand the understanding of TPNs in two respects. First, only a few studies have adopted the TPN framework to investigate the inter-organizational coordination mechanisms among small or medium organizations. Second, the findings related to the TPN structural properties – time, team, task and context – deviate from how some have framed the ideal type TPN as in most senses unique, solving one-off tasks between relative strangers.