IDEAS home Printed from https://ideas.repec.org/a/pal/jintbs/v51y2020i9d10.1057_s41267-020-00317-x.html
   My bibliography  Save this article

Adaptive learning in international business

Author

Listed:
  • Yadong Luo

    (University of Miami
    Sun Yat-Sen University Business School)

Abstract

Building on Daniel Levinthal’s seminal theories on learning, adaptation, and innovation, this article elucidates an adaptive view of organizational learning undertaken by multinational enterprises (MNEs). Levinthal’s perspectives have tremendous implications for theorizing and examining processes, pathways, and mechanisms of dynamic learning for MNEs competing in a complex environment. This article extends these perspectives, considering unique organizational traits and environmental characteristics facing MNEs for a more nuanced understanding of contexts in which adaptive learning creates global competitive advantage. Discussion also includes Levinthal’s perspectives that are not yet adequately extended to, but valuable for, IB research, such as learning mindfulness, cognitive search, organizational architecture for adaptation, and co-evolution with technological change. We offer additional research questions as well as possible solutions to adaptive learning for international business.

Suggested Citation

  • Yadong Luo, 2020. "Adaptive learning in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1547-1567, December.
    • Handle: RePEc:pal:jintbs:v:51:y:2020:i:9:d:10.1057_s41267-020-00317-x
    DOI: 10.1057/s41267-020-00317-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41267-020-00317-x
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41267-020-00317-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ingmar Björkman & Günter K Stahl & Eero Vaara, 2007. "Cultural differences and capability transfer in cross-border acquisitions: the mediating roles of capability complementarity, absorptive capacity, and social integration," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 658-672, July.
    2. Stefano Elia & Marcus M. Larsen & Lucia Piscitello, 2019. "Entry mode deviation: A behavioral approach to internalization theory," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(8), pages 1359-1371, October.
    3. Giuseppe Soda & Akbar Zaheer, 2012. "A network perspective on organizational architecture: performance effects of the interplay of formal and informal organization," Strategic Management Journal, Wiley Blackwell, vol. 33(6), pages 751-771, June.
    4. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    5. D Minbaeva & T Pedersen & I Björkman & C F Fey & H J Park, 2003. "MNC knowledge transfer, subsidiary absorptive capacity, and HRM," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(6), pages 586-599, November.
    6. Alan M. Rugman & Alain Verbeke, 2005. "Extending the Theory of the Multinational Enterprise: Internalization and Strategic Management Perspectives," Chapters, in: Analysis of Multinational Strategic Management, chapter 7, pages 91-103, Edward Elgar Publishing.
    7. Stephanie C Schleimer & Torben Pedersen, 2014. "The effects of MNC parent effort and social structure on subsidiary absorptive capacity," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(3), pages 303-320, April.
    8. Kogut, Bruce & Chang, Sea Jin, 1991. "Technological Capabilities and Japanese Foreign Direct Investment in the United States," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 401-413, August.
    9. Satish Nambisan & Shaker A. Zahra & Yadong Luo, 2019. "Global platforms and ecosystems: Implications for international business theories," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1464-1486, December.
    10. Daniel A. Levinthal, 1991. "Organizational Adaptation and Environmental Selection-Interrelated Processes of Change," Organization Science, INFORMS, vol. 2(1), pages 140-145, February.
    11. Yadong Luo, 1997. "Partner Selection and Venturing Success: The Case of Joint Ventures with Firms in the People's Republic of China," Organization Science, INFORMS, vol. 8(6), pages 648-662, December.
    12. Yuping Zeng & Oded Shenkar & Seung-Hyun Lee & Sangcheol Song, 2013. "Cultural differences, MNE learning abilities, and the effect of experience on subsidiary mortality in a dissimilar culture: Evidence from Korean MNEs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(1), pages 42-65, January.
    13. Sendil K. Ethiraj & Daniel Levinthal, 2004. "Modularity and Innovation in Complex Systems," Management Science, INFORMS, vol. 50(2), pages 159-173, February.
    14. Elizabeth Maitland & André Sammartino, 2015. "Managerial cognition and internationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(7), pages 733-760, September.
    15. Marcelo Cano-Kollmann & John Cantwell & Thomas J Hannigan & Ram Mudambi & Jaeyong Song, 2016. "Knowledge connectivity: An agenda for innovation research in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(3), pages 255-262, April.
    16. Michael D Lord & Annette L Ranft, 2000. "Organizational Learning About New International Markets: Exploring the Internal Transfer of Local Market Knowledge," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(4), pages 573-589, December.
    17. 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;Academy of International Business, vol. 27(4), pages 877-903, December.
    18. Yadong Luo & Mike W Peng, 1999. "Learning to Compete in a Transition Economy: Experience, Environment, and Performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(2), pages 269-295, June.
    19. Anupama Phene & Paul Almeida, 2008. "Innovation in multinational subsidiaries: The role of knowledge assimilation and subsidiary capabilities," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(5), pages 901-919, July.
    20. David J Teece, 2014. "A dynamic capabilities-based entrepreneurial theory of the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(1), pages 8-37, January.
    21. Linda Argote & Ella Miron-Spektor, 2011. "Organizational Learning: From Experience to Knowledge," Organization Science, INFORMS, vol. 22(5), pages 1123-1137, October.
    22. Jonas F Puck & Dirk Holtbrügge & Alexander T Mohr, 2009. "Beyond entry mode choice: Explaining the conversion of joint ventures into wholly owned subsidiaries in the People's Republic of China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(3), pages 388-404, April.
    23. Gabriel R G Benito & Geir Gripsrud, 1992. "The Expansion of Foreign Direct Investments: Discrete Rational Location Choices or a Cultural Learning Process?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(3), pages 461-476, September.
    24. Bruce Kogut & Udo Zander, 1993. "Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(4), pages 625-645, December.
    25. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    26. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    27. Herriott, Scott R & Levinthal, Daniel & March, James G, 1985. "Learning from Experience in Organizations," American Economic Review, American Economic Association, vol. 75(2), pages 298-302, May.
    28. George P. Huber, 1991. "Organizational Learning: The Contributing Processes and the Literatures," Organization Science, INFORMS, vol. 2(1), pages 88-115, February.
    29. Bruce Kogut & Udo Zander, 1995. "Knowledge, Market Failure and the Multinational Enterprise: A Reply," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(2), pages 417-426, June.
    30. Maurizio Zollo & Sidney G. Winter, 2002. "Deliberate Learning and the Evolution of Dynamic Capabilities," Organization Science, INFORMS, vol. 13(3), pages 339-351, June.
    31. John Cantwell & John H Dunning & Sarianna M Lundan, 2010. "An evolutionary approach to understanding international business activity: The co-evolution of MNEs and the institutional environment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(4), pages 567-586, May.
    32. Arvind Parkhe, 1991. "Interfirm Diversity, Organizational Learning, and Longevity in Global Strategic Alliances," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(4), pages 579-601, December.
    33. Levinthal, Daniel A, 1998. "The Slow Pace of Rapid Technological Change: Gradualism and Punctuation in Technological Change," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 7(2), pages 217-247, June.
    34. Herbert A. Simon, 1991. "Bounded Rationality and Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 125-134, February.
    35. Levinthal, D.A. & Fichman, M., 1991. "Honeymoons and the Liability of Adolescence : A New Perspective on Duration Dependence in Social Organizational Relationships," GSIA Working Papers 1991-34, Carnegie Mellon University, Tepper School of Business.
    36. Sumantra Ghoshal & Christopher A Bartlett, 1988. "Creation, Adoption and Diffusion of Innovations by Subsidiaries of Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 365-388, September.
    37. Daniel A. Levinthal, 1997. "Adaptation on Rugged Landscapes," Management Science, INFORMS, vol. 43(7), pages 934-950, July.
    38. J. Myles Shaver & Will Mitchell & Bernard Yeung, 1997. "The effect of own‐firm and other‐firm experience on foreign direct investment survival in the United States, 1987–92," Strategic Management Journal, Wiley Blackwell, vol. 18(10), pages 811-824, November.
    39. Ron Adner & Daniel Levinthal, 2001. "Demand Heterogeneity and Technology Evolution: Implications for Product and Process Innovation," Management Science, INFORMS, vol. 47(5), pages 611-628, May.
    40. Levinthal, Daniel & March, James G., 1981. "A model of adaptive organizational search," Journal of Economic Behavior & Organization, Elsevier, vol. 2(4), pages 307-333, December.
    41. Thomas Hutzschenreuter & Torben Pedersen & Henk W Volberda, 2007. "The role of path dependency and managerial intentionality: a perspective on international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(7), pages 1055-1068, December.
    42. Daniel Levinthal & Claus Rerup, 2006. "Crossing an Apparent Chasm: Bridging Mindful and Less-Mindful Perspectives on Organizational Learning," Organization Science, INFORMS, vol. 17(4), pages 502-513, August.
    43. Peter J Buckley, 1988. "The Limits of Explanation: Testing the Internalization Theory of the Multinational Enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(2), pages 181-193, June.
    44. Y. L. Doz & C. K. Prahalad, 1991. "Managing DMNCs: A search for a new paradigm," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 145-164, June.
    45. Raja Kali & Javier Reyes, 2007. "The architecture of globalization: a network approach to international economic integration," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 595-620, July.
    46. A Verbeke, 2003. "The evolutionary view of the MNE and the future of internalization theory," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(6), pages 498-504, November.
    47. Yadong Luo, 2008. "Structuring interorganizational cooperation: the role of economic integration in strategic alliances," Strategic Management Journal, Wiley Blackwell, vol. 29(6), pages 617-637, June.
    48. Andreas P. J. Schotter & Ram Mudambi & Yves L. Doz & Ajai Gaur, 2017. "Boundary Spanning in Global Organizations," Journal of Management Studies, Wiley Blackwell, vol. 54(4), pages 403-421, June.
    49. Bent Petersen & Torben Pedersen & Marjorie A Lyles, 2008. "Closing knowledge gaps in foreign markets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(7), pages 1097-1113, October.
    50. Arie Y. Lewin & Chris P. Long & Timothy N. Carroll, 1999. "The Coevolution of New Organizational Forms," Organization Science, INFORMS, vol. 10(5), pages 535-550, October.
    51. 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;Academy of International Business, vol. 27(5), pages 877-903, December.
    52. Daniel A. Levinthal & Massimo Warglien, 1999. "Landscape Design: Designing for Local Action in Complex Worlds," Organization Science, INFORMS, vol. 10(3), pages 342-357, June.
    53. Jasjit Singh, 2007. "Asymmetry of knowledge spillovers between MNCs and host country firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(5), pages 764-786, September.
    54. Nicolaj Siggelkow & Daniel A. Levinthal, 2003. "Temporarily Divide to Conquer: Centralized, Decentralized, and Reintegrated Organizational Approaches to Exploration and Adaptation," Organization Science, INFORMS, vol. 14(6), pages 650-669, December.
    55. Peter J. Lane & Jane E. Salk & Marjorie A. Lyles, 2001. "Absorptive capacity, learning, and performance in international joint ventures," Strategic Management Journal, Wiley Blackwell, vol. 22(12), pages 1139-1161, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wu, Sihong & Fan, Di & Su, Yiyi, 2021. "The Co-Evolution of Global Legitimation and Technology Upgrading: The Case of Huawei," American Business Review, Pompea College of Business, University of New Haven, vol. 24(2), pages 147-172, November.
    2. Magnani, Giovanna & Zucchella, Antonella, 2021. "Portfolios of learning in entrepreneurial internationalisation," Journal of International Management, Elsevier, vol. 27(2).
    3. H. Emre Yildiz & Sergey Morgulis-Yakushev & Ulf Holm & Mikael Eriksson, 2023. "A relational view on the performance effects of international diversification strategies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(1), pages 203-217, February.
    4. Ozkan, Kubilay S.L. & Khan, Huda & Deligonul, Seyda & Yeniyurt, Sengun & Gu, Qian (Cecilia) & Cavusgil, Erin & Xu, Shichun, 2022. "Race for market share gains: How emerging market and advanced economy MNEs perform in each other’s turf," Journal of Business Research, Elsevier, vol. 150(C), pages 208-222.
    5. Yanwei Sun & Dazhuo Mo & Ting Nie, 2022. "Employee Adversarial Growth Driven by Organizational Learning in the Chinese Pharmaceutical Industry," Sustainability, MDPI, vol. 14(24), pages 1-13, December.
    6. Pyun, Ju Hyun & Sun, Jong-in, 2022. "Is Hiring Foreign Worth It? Spillover from Foreign Firms’ Human Capital and Local Firms’ Productivity," ADBI Working Papers 1324, Asian Development Bank Institute.
    7. Dan V. Caprar & Sunghoon Kim & Benjamin W. Walker & Paula Caligiuri, 2022. "Beyond “Doing as the Romans Do”: A review of research on countercultural business practices," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(7), pages 1449-1483, September.
    8. Zhang, Xiaotao & Liu, Yipeng & Tarba, Shlomo Y. & Giudice, Manlio Del, 2020. "The micro-foundations of strategic ambidexterity: Chinese cross-border M&As, Mid-View thinking and integration management," International Business Review, Elsevier, vol. 29(6).
    9. Yipeng Liu & Ralf Bebenroth & Yi Yang, 2022. "East-Meets-West: Mergers and Acquisitions challenges and opportunities in and out of Asia," Asian Business & Management, Palgrave Macmillan, vol. 21(5), pages 715-744, November.
    10. Chengguang Li & Jeffrey J. Reuer, 2022. "The impact of corruption on market reactions to international strategic alliances," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(1), pages 187-202, February.
    11. Liu, Ting & Li, Xizhuo, 2022. "How Do MNCs Conduct Local Technological Innovation in a Host Country? An Examination From Subsidiaries' Perspective," Journal of International Management, Elsevier, vol. 28(3).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Torben Pedersen & Marcus M Larsen & Àngels Dasí, 2020. "Searching locally and globally: Applying Daniel Levinthal’s scholarship to international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1532-1546, December.
    2. Arie Y Lewin & Silvia Massini & Carine Peeters, 2020. "Absorptive capacity, socially enabling mechanisms, and the role of learning from trial and error experiments: A tribute to Dan Levinthal’s contribution to international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1568-1579, December.
    3. Irina Surdu & Kamel Mellahi & Keith Glaister, 2017. "Once bitten, not necessarily shy? Organisational learning prior experience effects on foreign market re-entry commitment decisions," John H Dunning Centre for International Business Discussion Papers jhd-dp2017-04, Henley Business School, University of Reading.
    4. Lívia Lopes Barakat & Torben Pedersen & Marcio Amaral-Baptista & Sherban Leornardo Cretoiu & Paulo Bento, 2022. "Too Much of Two Good Things: Explicating the Limited Complementarity Between Drivers of MNC Headquarters’ Absorptive Capacity," Management International Review, Springer, vol. 62(3), pages 393-426, June.
    5. Thomas Hutzschenreuter & Tanja Matt, 2017. "MNE internationalization patterns, the roles of knowledge stocks, and the portfolio of MNE subsidiaries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(9), pages 1131-1150, December.
    6. Shaker A. Zahra & Olga Petricevic & Yadong Luo, 2022. "Toward an action-based view of dynamic capabilities for international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 583-600, June.
    7. Rabbiosi, Larissa & Santangelo, Grazia D., 2013. "Parent company benefits from reverse knowledge transfer: The role of the liability of newness in MNEs," Journal of World Business, Elsevier, vol. 48(1), pages 160-170.
    8. Arie Y. Lewin & Silvia Massini & Carine Peeters, 2011. "Microfoundations of Internal and External Absorptive Capacity Routines," Organization Science, INFORMS, vol. 22(1), pages 81-98, February.
    9. Christopher Williams & Ana Colovic & Jiqing Zhu, 2016. "Foreign Market Knowledge, Country Sales Breadth And Innovative Performance Of Emerging Economy Firms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(06), pages 1-25, August.
    10. Irina Surdu & Kamel Mellahi & Keith W Glaister, 2019. "Once bitten, not necessarily shy? Determinants of foreign market re-entry commitment strategies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(3), pages 393-422, April.
    11. Piaskowska, D., 2005. "Essays on firm growth and value creation," Other publications TiSEM 89053610-79c6-4c52-9d1c-6, Tilburg University, School of Economics and Management.
    12. Sangyoon Yi & Thorbjørn Knudsen & Markus C. Becker, 2016. "Inertia in Routines: A Hidden Source of Organizational Variation," Organization Science, INFORMS, vol. 27(3), pages 782-800, June.
    13. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 0. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-39.
    14. Christina Fang & Jeho Lee & Melissa A. Schilling, 2010. "Balancing Exploration and Exploitation Through Structural Design: The Isolation of Subgroups and Organizational Learning," Organization Science, INFORMS, vol. 21(3), pages 625-642, June.
    15. Casillas, José C. & Moreno, Ana M. & Acedo, Francisco J. & Gallego, María A. & Ramos, Encarnación, 2009. "An integrative model of the role of knowledge in the internationalization process," Journal of World Business, Elsevier, vol. 44(3), pages 311-322, July.
    16. Sjoerd Beugelsdijk, 2022. "Capitalizing on the uniqueness of international business: Towards a theory of place, space, and organization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 2050-2067, December.
    17. Danchi Tan & Weichieh Su & Joseph T. Mahoney & Yasemin Kor, 2020. "A review of research on the growth of multinational enterprises: A Penrosean lens," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 498-537, June.
    18. Pak, Yong Suhk & Ra, Wonchan & Park, Young-Ryeol, 2009. "Understanding IJV performance in a learning and conflict mediated context," International Business Review, Elsevier, vol. 18(5), pages 470-480, October.
    19. Oh, Chang Hoon & Shin, Jiyoung & Oetzel, Jennifer, 2021. "How does experience change firms' foreign investment decisions to non-market events?," Journal of International Management, Elsevier, vol. 27(1).
    20. Yadong Luo, 2022. "New connectivity in the fragmented world," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(5), pages 962-980, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jintbs:v:51:y:2020:i:9:d:10.1057_s41267-020-00317-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.