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The relationship between organizational learning and firms' financial performance in strategic alliances: A contingency approach

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  • Jiang, Xu
  • Li, Yuan

Abstract

This study examines the relationship between organizational learning and firm-level financial performance in the context of strategic alliances. The strength of the relationship is also examined in light of possible moderating effects of the form, scope, and competitive regime of the alliance. On the whole, results from a survey of 127 German partnering firms support a contingency approach to firm performance using structural equation modeling. Results suggest a significant, positive, and strong relationship between organizational learning and financial performance. This positive relationship is stronger in joint ventures and weaker in contractual alliances. Also, the relationship is stronger when the partners are based on the same industry and weaker when they are across industries. However, while it is proposed that the above relationship will be stronger in alliances with broader scope, the empirical results only partially support this hypothesis.

Suggested Citation

  • Jiang, Xu & Li, Yuan, 2008. "The relationship between organizational learning and firms' financial performance in strategic alliances: A contingency approach," Journal of World Business, Elsevier, vol. 43(3), pages 365-379, July.
  • Handle: RePEc:eee:worbus:v:43:y:2008:i:3:p:365-379
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    Cited by:

    1. Contractor, Farok J. & Woodley, James A., 2015. "How the alliance pie is split: Value appropriation by each partner in cross-border technology transfer alliances," Journal of World Business, Elsevier, vol. 50(3), pages 535-547.
    2. Christoffersen, Jeppe & Plenborg, Thomas & Robson, Matthew J., 2014. "Measures of strategic alliance performance, classified and assessed," International Business Review, Elsevier, vol. 23(3), pages 479-489.
    3. Chia Sun, 2014. "A conceptual framework for R&D strategic alliance assessment for Taiwan’s biotechnology industry," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(1), pages 259-279, January.
    4. 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.
    5. repec:spr:manint:v:55:y:2015:i:1:d:10.1007_s11575-014-0224-5 is not listed on IDEAS
    6. Beamish, Paul W. & Lupton, Nathaniel C., 2016. "Cooperative strategies in international business and management: Reflections on the past 50 years and future directions," Journal of World Business, Elsevier, vol. 51(1), pages 163-175.
    7. Erden, Zeynep & Klang, David & Sydler, Renato & von Krogh, Georg, 2014. "Knowledge-flows and firm performance," Journal of Business Research, Elsevier, vol. 67(1), pages 2777-2785.
    8. Bojica, Ana Maria & Fuentes, Maria del Mar Fuentes, 2012. "Knowledge acquisition and corporate entrepreneurship: Insights from Spanish SMEs in the ICT sector," Journal of World Business, Elsevier, vol. 47(3), pages 397-408.
    9. Li, Dan & Miller, Stewart R. & Eden, Lorraine & Hitt, Michael A., 2012. "The Impact of Rule of Law on Market Value Creation for Local Alliance Partners in BRIC Countries," Journal of International Management, Elsevier, vol. 18(4), pages 305-321.
    10. Zgrzywa-Ziemak Anna, 2015. "The Impact of Organisational Learning on Organisational Performance," Management and Business Administration. Central Europe, De Gruyter Open, vol. 23(4), pages 98-112, December.
    11. Li, Linwei & Jiang, Feifei & Pei, Yunlong & Jiang, Nengqian, 2017. "Entrepreneurial orientation and strategic alliance success: The contingency role of relational factors," Journal of Business Research, Elsevier, vol. 72(C), pages 46-56.
    12. Mihailova, Irina, 2015. "Outcomes of learning through JVs for local parent firms in transition economies: Evidence from Russia," Journal of World Business, Elsevier, vol. 50(1), pages 220-233.
    13. Jiang, Xu & Bao, Yongchuan & Xie, Yan & Gao, Shanxing, 2016. "Partner trustworthiness, knowledge flow in strategic alliances, and firm competitiveness: A contingency perspective," Journal of Business Research, Elsevier, vol. 69(2), pages 804-814.

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