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Learning from international business affiliates: developing resource-based learning capacity through networks and knowledge acquisition

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  • Pérez-Nordtvedt, Liliana
  • Babakus, Emin
  • Kedia, Ben L.
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    Abstract

    Resource-based learning capacity (RBLC) is an organization's specific resources - both human and tangible - that can be organized to enhance learning processes. This study develops and tests a model that examines the relationship between the learning efforts of focal firms from their international business affiliates (IBAs) - organizations located outside the focal firm's domestic market with whom the focal firm has a relationship - and the focal firms' RBLC. This learning process refers to the transfer of knowledge from the IBA to the focal firm. Results indicate that while learning effectiveness positively influences the RBLC of the focal firm, learning efficiency has a negative impact on RBLC. The IBA's home country network centrality and the tie strength between the focal organization and the IBA are found to influence learning effectiveness positively. Tie strength also enhances learning efficiency. Finally, the findings indicate that the IBA's home country network centrality enhances the strength of the ties between the focal organization and its IBA.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of International Management.

    Volume (Year): 16 (2010)
    Issue (Month): 3 (September)
    Pages: 262-274

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    Handle: RePEc:eee:intman:v:16:y:2010:i:3:p:262-274

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    Related research

    Keywords: Resource-based learning capacity Absorptive capacity Effective learning Efficient learning Network centrality Tie strength;

    References

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    1. Paul Almeida & Bruce Kogut, 1999. "Localization of Knowledge and the Mobility of Engineers in Regional Networks," Management Science, INFORMS, vol. 45(7), pages 905-917, July.
    2. Jansen, J.J.P. & van den Bosch, F.A.J. & Volberda, H.W., 2005. "Managing Potential and Realized Absorptive Capacity: How do Organizational Antecedents matter?," ERIM Report Series Research in Management ERS-2005-025-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
    3. Daniel Z. Levin & Rob Cross, 2004. "The Strength of Weak Ties You Can Trust: The Mediating Role of Trust in Effective Knowledge Transfer," Management Science, INFORMS, vol. 50(11), pages 1477-1490, November.
    4. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
    5. Liliana Pérez-Nordtvedt & Ben L. Kedia & Deepak K. Datta & Abdul A. Rasheed, 2008. "Effectiveness and Efficiency of Cross-Border Knowledge Transfer: An Empirical Examination," Journal of Management Studies, Wiley Blackwell, vol. 45(4), pages 714-744, 06.
    6. Marjorie A Lyles & Jane E Salk, 1996. "Knowledge Acquisition from Foreign Parents in International Joint Ventures: An Empirical Examination in the Hungarian Context," Journal of International Business Studies, Palgrave Macmillan, vol. 27(4), pages 877-903, December.
    7. Henrik Bresman & Julian Birkinshaw & Robert Nobel, 1999. "Knowledge Transfer in International Acquisitions," Journal of International Business Studies, Palgrave Macmillan, vol. 30(3), pages 439-462, September.
    8. Kyriakos Kyriakopoulos & Ko de Ruyter, 2004. "Knowledge Stocks and Information Flows in New Product Development," Journal of Management Studies, Wiley Blackwell, vol. 41(8), pages 1469-1498, December.
    9. Bernard L Simonin, 2004. "An empirical investigation of the process of knowledge transfer in international strategic alliances," Journal of International Business Studies, Palgrave Macmillan, vol. 35(5), pages 407-427, September.
    10. Marjorie A Lyles & Jane E Salk, 1996. "Knowledge Acquisition from Foreign Parents in International Joint Ventures: An Empirical Examination in the Hungarian Context," Journal of International Business Studies, Palgrave Macmillan, vol. 27(5), pages 877-903, December.
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    Cited by:
    1. Lau, Victor P. & Dimitrova, Mihaela N. & Shaffer, Margaret A. & Davidkov, Tzvetan & Yordanova, Desislava I., 2012. "Entrepreneurial Readiness and Firm Growth: An Integrated Etic and Emic Approach," Journal of International Management, Elsevier, vol. 18(2), pages 147-159.
    2. Lee, Jeoung Yul & Park, Young-Ryeol & Ghauri, Pervez N. & Park, Byung Il, 2014. "Innovative Knowledge Transfer Patterns of Group-Affiliated Companies: The effects on the Performance of Foreign Subsidiaries," Journal of International Management, Elsevier, vol. 20(2), pages 107-123.
    3. Arif Orcun Sakarya, 2014. "Examination of Innovation Sources and Cooperation Alternatives for Turkish Firms," Eurasian Journal of Business and Management, Eurasian Publications, vol. 2(1), pages 36-45.

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