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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.

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.

Suggested Citation

  • Pérez-Nordtvedt, Liliana & Babakus, Emin & Kedia, Ben L., 2010. "Learning from international business affiliates: developing resource-based learning capacity through networks and knowledge acquisition," Journal of International Management, Elsevier, vol. 16(3), pages 262-274, September.
  • Handle: RePEc:eee:intman:v:16:y:2010:i:3:p:262-274
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    References listed on IDEAS

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    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. repec:spr:manint:v:55:y:2015:i:1:d:10.1007_s11575-014-0224-5 is not listed on IDEAS
    4. repec:eee:worbus:v:52:y:2017:i:6:p:727-742 is not listed on IDEAS
    5. 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.
    6. 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.
    7. Demirbag, Mehmet & McGuinness, Martina & Akin, Ahmet & Bayyurt, Nizamettin & Basti, Eyup, 2016. "The professional service firm (PSF) in a globalised economy: A study of the efficiency of securities firms in an emerging market," International Business Review, Elsevier, vol. 25(5), pages 1089-1102.

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