Using learning networks to enable industrial development : Case studies from South Africa

Purpose – The purpose of this paper is to explore the dynamics of inter‐firm learning and the ways in which “learning networks” can be established and facilitated. Underlying this is the argument that significant traction on the problem of organizational learning – in this case around process innovations – can be gained through deploying structured and purposeful inter‐organizational learning networks. Design/methodology/approach – The paper builds on three case studies drawn from the experience of firms in South Africa, covering both vertical (supply chain) and horizontal (cross‐sector) groupings in automotive components and timber products. Findings – The paper reports on the ways in which the learning networks were set‐up and operated, mapping this experience against a model framework which emphasizes a number of core operational processes. It suggests that the success of both the automotive component groupings and the failure of the timber products network can be explained through reference to this model and the different approaches taken to managing these core processes. Research limitations/implications – The research reported here draws on a small number of detailed cases and further work is needed to verify the model and the guidelines for action. Practical implications – The paper highlights guidelines for policy agents – for example, in business support agencies or regional development authorities – in setting up and running effective learning networks. Originality/value – The paper contributes to theory around inter‐organizational networking and organizational learning and provides micro‐level detail of how learning networks can be established and sustained.