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Article
Publication date: 1 July 2002

Managing the paradox of inter‐firm learning: the role of governance mechanisms

Jakki J. Mohr and Sanjit Sengupta

Organizational learning in inter‐firm exchange relationships poses a double‐edged sword. On one hand, inter‐firm learning is a desirable extension of organizational…

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Abstract

Organizational learning in inter‐firm exchange relationships poses a double‐edged sword. On one hand, inter‐firm learning is a desirable extension of organizational learning, developing a firm’s knowledge base, and providing fresh insights into strategies, markets, and relationships. On the other hand, inter‐firm learning can lead to unintended and undesirable skills transfer, resulting in the potential dilution of competitive advantage. This risk can be exacerbated by disparities in inter‐firm learning, resulting in uneven distribution of benefits and risks in the collaborative relationship. This paper articulates these two different views on inter‐firm learning, and second, develops a framework for the role of governance in regulating knowledge transfer. In particular, appropriate governance mechanisms must be crafted which match the learning intentions of the partners, the type of knowledge sought, and the designed duration for the collaboration, so as to maximize the benefits of learning while minimizing the risks. Implications for strategy and future research are offered.

Details

Journal of Business & Industrial Marketing, vol. 17 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/08858620210431688
ISSN: 0885-8624

Keywords

  • Partnering
  • Alliances
  • Governance
  • Skills

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Article
Publication date: 13 February 2017

Information technology and marketing performance within international market-entry alliances: A review and an integrated conceptual framework

Shasha Zhao and Constantinos-Vasilios Priporas

The purpose of this paper is to engage in a comprehensive review of the research on information technology (IT)-mediated international market-entry alliances.

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Abstract

Purpose

The purpose of this paper is to engage in a comprehensive review of the research on information technology (IT)-mediated international market-entry alliances.

Design/methodology/approach

This paper provides a theory-informed conceptual framework of IT-enabled cross-border interfirm relationships and performance outcomes. It integrates perspectives of resource-based view (RBV) and transaction cost economics (TCE) to argue that the establishment of interfirm IT capabilities enhances the marketing performance of the foreign partner in the host location by improving interfirm relationship governance. Furthermore, IT-related risks and contextual restrictions are identified as important moderators.

Findings

Conceptualisations of IT capabilities, IT-enhanced interfirm governance, and IT-led marketing performance improvement are suggested. Drawing on RBV and TCE, IT resources, related human resources, and IT integration between partner firms in combination enhances the ability of firms to manage the relationship more effectively through shared control, interfirm coordination, cross-firm formalisation, and hybrid centralisation. These benefits then bring about better upstream and downstream marketing performance in the host location. Additionally, IT capabilities help to mitigate possible contextual limitations and risks.

Research limitations/implications

The paper offers a number of theory- and literature-informed research propositions which can be empirically tested in future studies.

Practical implications

Top managers of firms currently in or planning to enter international alliances for market entry should carefully consider effective development of interfirm IT capabilities in terms of readiness of hardware and software, human resources, and organisational resources.

Originality/value

The paper provides an integrated framework and propositions which contribute to limited understanding and appreciation of IT value in international market-entry alliances.

Details

International Marketing Review, vol. 34 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/IMR-01-2016-0024
ISSN: 0265-1335

Keywords

  • Information technology
  • Entry modes
  • Cross-border alliance
  • Marketing performance

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Article
Publication date: 20 December 2003

Organisational learning and the risks of technology transfers in China

Yim‐Yu Wong, Thomas E. Maher, Joel D. Nicholson and Alex Feng Bai

The transfer of technology from the foreign partner to the domestic partner has been a problem for international joint ventures throughout the world, but particularly in…

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Abstract

The transfer of technology from the foreign partner to the domestic partner has been a problem for international joint ventures throughout the world, but particularly in China. Because of the nature of organisational learning, especially in its tacit forms, such transfers can occur quite subtly without the foreign partner realising what has transpired until it is too late. The problem is complicated by the fact that technology is short‐lived and must be exploited within narrow time frames, the fact that the Chinese partner’s primary interest is in acquiring the foreign partner’s technology, and the fact that the foreign partner typically shows little interest in obtaining the Chinese partner’s unique non‐technical knowledge as an offset. This article attempts to show how technology transfers can be controlled in the first place and how the foreign partner’s competitive advantage can be preserved by acquiring the domestic partner’s unique knowledge of host country circumstances.

Details

Management Research News, vol. 26 no. 12
Type: Research Article
DOI: https://doi.org/10.1108/01409170310783682
ISSN: 0140-9174

Keywords

  • Organisational learning
  • Technology transfer
  • Joint venture
  • China

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Article
Publication date: 4 February 2014

Individual antecedents of ACAP and implications of social context in joint engineering project teams: a conceptual model

Adedapo Oluwaseyi Ojo, Murali Raman, Siong Choy Chong and Chin Wei Chong

This paper attempts to propose a conceptual model to explain the micro-level antecedents of absorptive capacity (ACAP) and social context of joint engineering project…

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Abstract

Purpose

This paper attempts to propose a conceptual model to explain the micro-level antecedents of absorptive capacity (ACAP) and social context of joint engineering project teams. It delineates ACAP into four dimensions and suggests specific level for each dimension. Revisiting the micro-foundational origin of ACAP, acquisition of partner's embedded knowledge through joint project teams requires complex interaction among individuals, thus the effect of individual differences and perception in the team's context is proposed.

Design/methodology/approach

Cohen and Levinthal's assertion on the conceptual affinity that ACAP shares with creative capacity and organizational learning was revisited. Upon synthesizing pertinent literature, individual antecedents were conceptualized, while strategic alliance literature was examined to theorize on the social context.

Findings

Propositions relating individual antecedents and social context to associated dimension of ACAP are postulated. Furthermore, the paper suggests a need for further inquest on the implication of cultural differences.

Research limitations/implications

The hypothesized relationships among the constructs are subject to empirical investigation in order to deepen our understanding on individual differences and social contextual effects.

Practical implications

Based on the conceptualized relationships among micro-level antecedents, multidimensional ACAP, and social context, this manuscript recommends some practical guidelines in the context of joint engineering project teams.

Originality/value

This study explicates the micro-level antecedents of ACAP within a joint engineering project team. By integrating individual and social context, it advances multilevel conceptualization of ACAP.

Details

Journal of Knowledge Management, vol. 18 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/JKM-08-2013-0332
ISSN: 1367-3270

Keywords

  • Ability to utilize knowledge
  • Individual differences
  • Joint project teams
  • Micro-level antecedents of absorptive capacity (ACAP)
  • Multidimensional absorptive capacity (ACAP)
  • Social context

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Article
Publication date: 21 September 2015

Balancing IJV knowledge contributions and trust needs

Mikelle Calhoun and Akhadian Harnowo

This paper aims to present a model that explains how knowledge contributions of international joint venture (“IJV”) partners can be balanced or imbalanced, which affects…

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Abstract

Purpose

This paper aims to present a model that explains how knowledge contributions of international joint venture (“IJV”) partners can be balanced or imbalanced, which affects each partners’ trust needs, with implications for future partner relationships.

Design/methodology/approach

Illustrative examples aid in explaining propositions associated with the knowledge/trust needs balance model. In addition, consideration is given to the trust-building complication of liability of foreignness and the implications balance or imbalance.

Findings

In total, 12 illustrative cases are evaluated to determine whether the knowledge contributions of the IJV partners are balanced. Knowledge intensity associated with the venture is assessed to determine the value of the foreign firm partner’s knowledge contribution. Cultural distance between the relevant countries provides a measure of the host country partner’s knowledge contribution. Balance is assessed after factoring in mitigating partner experience. The cases provide examples of four different balance/imbalance situations.

Practical implications

A critical aspect of a successful IJV is knowledge sharing and trust is required for the freest flow of information. It is important for firms entering into IJVs to more fully understand the relationship between the knowledge contributions of IJV partners and trust. When knowledge contributions are more evenly balanced, the relationship between the partners will be stronger.

Originality/value

The paper distinguishes between balance and stability/instability, expands the literature on knowledge intensity and contributes the new concept of trust needs. Balance at the start of an IJV has implications for the future relationship of the partners.

Details

The Multinational Business Review, vol. 23 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/MBR-12-2014-0067
ISSN: 1525-383X

Keywords

  • Trust
  • Knowledge
  • International joint venture

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Article
Publication date: 4 April 2016

Relational capital, strategic alliances and learning: In-depth analysis of Chinese-Russian cases in Taiwan

Fang-Yi Lo, Anastasia Stepicheva and Tzu-Ju Ann Peng

The purpose of this paper is to portray and analyze the importance of learning and knowledge transfer in strategic alliances created in the context of emerging markets…

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Abstract

Purpose

The purpose of this paper is to portray and analyze the importance of learning and knowledge transfer in strategic alliances created in the context of emerging markets, Russia and Taiwan in particular, and to identify the influence of relational capital factors on the effectives of learning in strategic alliances. Strategic alliances are one of the main tools companies resort to learn, acquire and develop new knowledge and skills.

Design/methodology/approach

This research is conducted by case study with four international strategic alliances between Taiwanese and Russian companies.

Findings

The results showed that the main driver determining the propensity of the companies located in the emerging markets to establish strategic alliances is learning intent. More specifically, the companies are willing to acquire partner’s managerial, marketing and production knowledge and skills. Relational capital created between partners, and presented through the existence of trust, communication and openness proved to have a determinant influence on the effectiveness and quality of learning process in the strategic alliances, especially in the context of the emerging markets. However, there is an inverted-U relationship between the learning potential of an alliance and the strength of relational involvement of the alliance partners, who utilize the certain means to prevent the negative effects of over-embeddedness.

Originality/value

The major contributions that were made by the study are the following: the authors made an attempt to synthesize different approaches and investigate what are the primary factors affecting strategic alliances formation and operation in the emerging markets context. The authors extended the previous research by reviewing, not only the impact of the relational capital on the process of learning among the partners in the strategic alliances but also by analyzing the forces influencing the strength of these ties. The authors further investigated whether the continuous strengthening of the relational ties is necessary and always beneficial for the companies.

Details

Chinese Management Studies, vol. 10 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/CMS-04-2015-0090
ISSN: 1750-614X

Keywords

  • Case study
  • Learning
  • Embeddedness
  • International strategic alliances

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Article
Publication date: 15 July 2014

Avoiding alliance myopia: forging learning outcomes for long-term success

Hamid Mazloomi Khamseh and Maryam Nasiriyar

– The purpose of this paper is to develop a framework for understanding the learning outcomes of strategic alliances.

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Abstract

Purpose

The purpose of this paper is to develop a framework for understanding the learning outcomes of strategic alliances.

Design/methodology/approach

On the basis of two dimensions of any strategic alliance – that is, similarity or dissimilarity of contribution of partners and explorative or exploitative nature of alliance – the author proposes a framework that recognizes four types of learning outcomes.

Findings

The distinction of four types of alliance enables the author to identify their distinctive characteristics and learning outcomes.

Originality/value

The paper increases the awareness of managers about the learning outcomes of strategic alliances, which helps managers to consider intended learning outcomes not only in planning, managing and evaluating any individual alliance but also in managing the alliance portfolio.

Details

Journal of Business Strategy, vol. 35 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/JBS-10-2013-0099
ISSN: 0275-6668

Keywords

  • Knowledge
  • Learning
  • Similarity
  • Exploitation
  • Strategic alliance
  • Exploration

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Article
Publication date: 9 May 2016

The role of prior experience and goal orientation in individual absorptive capacity

Adedapo Oluwaseyi Ojo and Murali Raman

International joint ventures offer the appropriate platform for the host partners in an emerging economy to access the external knowledge embedded in the expatriate from…

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Abstract

Purpose

International joint ventures offer the appropriate platform for the host partners in an emerging economy to access the external knowledge embedded in the expatriate from foreign partners. However several factors could constrain the acquisition of this knowledge by the local employees who are engaged in the former. The purpose of this paper is to investigate the underlying differences for the individual’s knowledge acquisition capability.

Design/methodology/approach

Individual’s knowledge acquisition capability was conceptualized as the individual dimension of absorptive capacity (ACAP). Given the engagement of employees in joint project teams, the team members are expected to differ in their experience and disposition to task. Thus, these differences are considered as predictors of the local team members ACAP, i.e., abilities to: recognize the value of; and assimilate the external knowledge embedded in the foreign partners. The hypothesized model was validated through the results of structural equation modeling on a cross sectional survey of 248 local team members of joint projects in the Nigerian upstream oil industry.

Findings

All the hypothesized relationships were supported, with the exception of that between prior experience and ability to recognize the value of knowledge.

Originality/value

This study offers empirical clarification on the underlying differences for individual ACAP within the context of asymmetric joint project teams set up to facilitate knowledge transfer. The findings have implications for academic and practical understanding on the role of individuals in the acquisition of external knowledge.

Details

Industrial Management & Data Systems, vol. 116 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/IMDS-05-2015-0187
ISSN: 0263-5577

Keywords

  • Absorptive capacity
  • Emerging economies
  • Knowledge acquisition
  • International joint ventures
  • Individual differences
  • Joint project teams

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Article
Publication date: 2 February 2015

Micro perceptive on absorptive capacity in joint ICT project teams in Malaysia

Adedapo Oluwaseyi Ojo and Murali Raman

This study aims to investigate the micro-antecedents of the multidimensional construct of absorptive capacity (ACAP) from the perspective of the individual characteristics…

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Abstract

Purpose

This study aims to investigate the micro-antecedents of the multidimensional construct of absorptive capacity (ACAP) from the perspective of the individual characteristics underlying learning capability in joint project information and communications technology (ICT) teams. Specifically, the model proposes prior experience and learning goal orientations as the micro-antecedents and delineates ACAP into four dimensions.

Design/methodology/approach

The context of study was the joint project teams, set up to facilitate the transfer of knowledge from expatriate to local employees in Malaysian ICT sector. Data collected through the cross-sectional survey of 205 local team members of joint ICT projects in Malaysia were analyzed using structural equation modelling.

Findings

Individual’s prior experience and learning orientation were associated with the ability to assimilate and recognize the value of partner’s knowledge, respectively. Furthermore, the hypothesized relationships among the ACAP dimensions were supported, and the mediating effect of shared cognition was confirmed.

Research limitations/implications

The use of cross-sectional and self-reported survey is a major limitation of this study.

Practical implications

Managerial implications are offered on the selection of team members and designing the joint project team.

Originality/value

This study demonstrates prior experience and learning orientation as antecedents of individuals’ learning capability, thereby extending extant conceptualization on the multifaceted nature of ACAP.

Details

Library Review, vol. 64 no. 1/2
Type: Research Article
DOI: https://doi.org/10.1108/LR-08-2014-0095
ISSN: 0024-2535

Keywords

  • Knowledge workers
  • Absorptive capacity
  • ICT project
  • Learning capability
  • Micro-antecedents
  • Partner’s knowledge

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Article
Publication date: 8 February 2016

Individual differences and potential absorptive capacity in joint project teams in the Nigerian upstream oil industry

Adedapo Oluwaseyi Ojo, Murali Raman and Chin Wei Chong

The purpose of this study is to elucidate the factors that underlie the differences in individual absorptive capacity (ACAP) within the context of joint project teams…

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Abstract

Purpose

The purpose of this study is to elucidate the factors that underlie the differences in individual absorptive capacity (ACAP) within the context of joint project teams, following the individual-level perspective on potential ACAP.

Design/methodology/approach

The model was empirically validated through structural equation modeling conducted on a cross-sectional survey of 248 local team members of joint projects in the Nigerian upstream oil industry.

Findings

Prior experience and learning goal orientation are positively associated with the ability to assimilate knowledge, whereas performance approach goal orientation and need for cognition are positively associated with the ability to recognize the value of knowledge. Surprisingly, no significant relationship exists between prior experience and ability to recognize the value of knowledge. In addition, the positive relationship between ability to recognize the value of knowledge and ability to assimilate knowledge is supported.

Originality/value

This study contributes to the empirical justification of the role of individuals in acquiring and assimilating external knowledge, and extends classroom-based constructs (i.e. need for cognition and goal orientation) to the project domain.

Details

VINE Journal of Information and Knowledge Management Systems, vol. 46 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/VJIKMS-08-2014-0050
ISSN: 2059-5891

Keywords

  • Interorganisational knowledge transfer
  • Absorptive capacity
  • Individual difference
  • Joint project team
  • Micro antecedents
  • Partner’s knowledge

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