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Knowledge transfer capacity of multinational enterprises and technology acquisition in international joint ventures

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  • Park, Byung Il

Abstract

This paper examines the impacts of the knowledge transfer capacity of multinational enterprises (MNEs) on the extent to which international joint ventures (IJVs) acquire technology. Although MNEs' capability to transfer knowledge is a key catalyst for IJVs to learn new information, extant literature currently sheds light on only student's absorptive capacity and neglects teacher's fundamental ability. Of course, there is no doubt that knowledge acquisition is not only determined by knowledge transfer capacity but also highly influenced by absorptive capacity. However, what we suggest here is that knowledge transfer capacity should not be omitted in the discussion of knowledge transfer. We design a series of propositions to test positive relationships between the capability of foreign firms and IJVs' technology acquisition. Using a sample of IJVs in Korea, the paper contributes to the literature by confirming that IJVs' learning also significantly depends on some key factors associated with foreign parents' capabilities. Based on the results, this study also provides some useful implications for MNEs which intend to establish IJVs in foreign markets.

Suggested Citation

  • Park, Byung Il, 2011. "Knowledge transfer capacity of multinational enterprises and technology acquisition in international joint ventures," International Business Review, Elsevier, vol. 20(1), pages 75-87, February.
  • Handle: RePEc:eee:iburev:v:20:y:2011:i:1:p:75-87
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Jae-Seung Han & Sang-Yong Lee, 2013. "The impact of technology transfer contract on a firm’s market value in Korea," The Journal of Technology Transfer, Springer, vol. 38(5), pages 651-674, October.
    2. Sajjad Jasimuddin & Jun Li & Nicholas Perdikis, 2015. "Linkage between geographic space and knowledge transfer by multinational enterprises: a structural equation approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 769-795, May.
    3. Rai, Varun & Funkhouser, Erik, 2015. "Emerging insights on the dynamic drivers of international low-carbon technology transfer," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 350-364.
    4. Park, Jeong-Yang & Harris, Simon, 2014. "Microfoundations for learning within international joint ventures," International Business Review, Elsevier, vol. 23(3), pages 490-503.
    5. Smeets, Roger & Bosker, E.M., 2011. "Leaders, laggards and technology seeking strategies," Journal of Economic Behavior & Organization, Elsevier, vol. 80(3), pages 481-497.
    6. Strese, Steffen & Adams, Daniel R. & Flatten, Tessa C. & Brettel, Malte, 2016. "Corporate culture and absorptive capacity: The moderating role of national culture dimensions on innovation management," International Business Review, Elsevier, vol. 25(5), pages 1149-1168.
    7. Yao, Zheng & Yang, Zhi & Fisher, Gregory J. & Ma, Chaoqun & (Er) Fang, Eric, 2013. "Knowledge complementarity, knowledge absorption effectiveness, and new product performance: The exploration of international joint ventures in China," International Business Review, Elsevier, vol. 22(1), pages 216-227.
    8. Park, Chansoo & Vertinsky, Ilan & Becerra, Manuel, 2015. "Transfers of tacit vs. explicit knowledge and performance in international joint ventures: The role of age," International Business Review, Elsevier, vol. 24(1), pages 89-101.
    9. Brueller, Nir N. & Ellis, Shmuel & Segev, Eli & Carmeli, Abraham, 2015. "Knowing when to acquire: The case of multinational technology firms," International Business Review, Elsevier, vol. 24(1), pages 1-10.
    10. Machikita, Tomohiro & Tsuji, Masatsugu & Ueki, Yasushi, 2016. "Does Kaizen create backward knowledge transfer to Southeast Asian firms?," Journal of Business Research, Elsevier, vol. 69(5), pages 1556-1561.
    11. Park, Byung Il & Ghauri, Pervez N., 2015. "Determinants influencing CSR practices in small and medium sized MNE subsidiaries: A stakeholder perspective," Journal of World Business, Elsevier, vol. 50(1), pages 192-204.
    12. Li, Xiaoqing & Roberts, Joanne & Yan, Yanni & Tan, Hui, 2014. "Knowledge sharing in China–UK higher education alliances," International Business Review, Elsevier, vol. 23(2), pages 343-355.
    13. Park, Byung Il & Choi, Jiyul, 2014. "Control mechanisms of MNEs and absorption of foreign technology in cross-border acquisitions," International Business Review, Elsevier, vol. 23(1), pages 130-144.
    14. repec:kap:jtecht:v:42:y:2017:i:3:d:10.1007_s10961-016-9505-4 is not listed on IDEAS

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