The Role of Know-How in Corporate Rejuvenation: The Case of Rover |
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| Authors: | Frank Mueller |
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| Institution: | Lecturer in the Strategic Management and Policy Studies Division at Aston Business School, Aston University. This paper has been prepared within the Technology and Firm Organisation research programme, conducted at the Centre for Business Strategy, London Business School. Financial support from the ESRC/DTI initiative on Technology and the Firm is gratefully acknowledged. I would like to acknowledge Michael Roper's involvement at an early stage of the research for this paper and would also like to thank Romano Dyerson, Paul Geroski, David Stout (all at London Business School) and John Overend (Aston University) for their helpful comments. The usual disclaimer applies. |
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| Abstract: | This paper focuses on the strategic context of the K-engine innovation at Rover Group. The argument is that during the 1960s and 1970s, British Leyland's attempt to establish engineering and development capabilities was undermined by a lack of financial commitment by top management, and numerous occasions of corporate reorganisation. Later, the strategic alliance with Honda provided an opportunity for Rover's corporate rejuvenation, and was part of a clearer top management focus on how to bring new products to the market. The strategic alliance also gave Rover the chance to gain crucial organisational competencies and know-how from this joint venture. This is in contrast to previous European-Japanese joint ventures, which often saw the Japanese partner on the receiving end of know-how transfer. |
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