Antecedents and Consequences of International Joint Venture Knowledge Acquisition

Abstract

Studies on the establishment of international joint ventures (IJVs) in open-oriented markets as a vehicle for knowledge acquisition have been increasing of late. Drawing on the transaction cost economics theory and the knowledge-based view, the chapter examines the impact of absorptive capacity, transfer mechanisms, knowledge management practices, and environmental uncertainty on knowledge acquisition of IJVs from foreign partners. Further, the author examines IJV innovativeness as a consequence of knowledge acquisition. The author tested the model with data from 122 IJVs in Algeria. By analyzing the data using SPSSv25 and smart PLS 3.0, the findings show that absorptive capacity and transfer mechanisms are positively and significantly related to knowledge acquisition of the IJVs. However, knowledge management practices and environmental uncertainty are not significant. In addition, the relationship between IJV knowledge acquisition and innovativeness is significant.