Korean international joint ventures: how the exchange climate affects tacit knowledge transfer from foreign parents

Abstract

Purpose

The purpose of this paper is to develop and test a theoretical model to examine how exchange climate attributes and contextual factors between two parent firms in an international joint venture (IJV) affect tacit knowledge transfer. The authors investigate how this tacit knowledge, which comprises international marketing expertise, knowledge about foreign cultures and tastes and managerial practices, impacts IJV performance.

Design/methodology/approach

Based on data from a survey of IJV managers in 326 Korean firms from a variety of industries, structural equation modeling (AMOS 18.0) is used to test the authors’ hypotheses.

Findings

The findings show that conflict resolution and cooperation positively affect tacit knowledge transfer, but communication does not. It was found that the difference in the relative levels of economic development in the environments of partners significantly influences tacit knowledge acquisition, but cultural distance does not. Tacit knowledge acquisition positively influences IJV performance.

Originality/value

The paper fills a gap in the literature by articulating the relationships between exchange climate attributes and tacit knowledge acquisition. Exchange climate, characterized by behavioral processes that directly impact knowledge transfer, constitutes an important missing link in prior research about tacit knowledge transfer. The paper contributes to a better understanding of the dynamic relationships among relational capital, exchange climate and tacit knowledge transfers. The model the authors develop and test has important implications for the design of organizational processes that facilitate tacit knowledge transfer.

Citation

Park, C., Vertinsky, I. and Lee, C. (2012), "Korean international joint ventures: how the exchange climate affects tacit knowledge transfer from foreign parents", International Marketing Review, Vol. 29 No. 2, pp. 151-174. https://doi.org/10.1108/02651331211216961