Demystifying the role of internal dynamics in the path of innovative competitiveness: a serial mediation model of international joint ventures

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vijita Aggarwal ◽  
Madhavi Kapoor
Keyword(s):  
Knowledge Transfer ◽  
Absorptive Capacity ◽  
Joint Ventures ◽  
International Joint Ventures ◽  
Equation Modeling ◽  
Internal Dynamics ◽  
Content Type ◽  
Organizational Competencies ◽  
International Joint

PurposeThe study proposes and evaluates a parsimonious research framework by integrating the major strategic theories related to an international firm's internal dynamics. This research's essence lies in the proposition that organizational competencies, knowledge resources and processes, absorptive capacity and innovativeness form the underlying base for sustainable competitive advantage in this dynamic world.Design/methodology/approachA cross-sectional explanatory research design is adopted. Using the quantitative data obtained from the sample of Indian international joint ventures (IJVs), partial least squares structural equation modeling (PLS-SEM) is deployed to confirm the proposed relationships among the research constructs. Finally, qualitative interviews helped in triangulating the primary survey's results.FindingsA well-established relationship between knowledge transfer and innovation is negated by the Indian IJVs' data, which is delved deeper with cross-industry qualitative analysis. The novel hierarchical model with multiple mediations has nurtured quite exciting results for the business world with some significant theoretical and managerial implications.Research limitations/implicationsThis study has investigated the nexus between multi-dimensional organizational competencies, knowledge transfer, absorptive capacity and venture innovativeness in the context of Indian IJVs. It has emphasized the role of internal dynamics in cross-cultural joint ventures to attain sustainable competitiveness through strategic and technological efficiency.Originality/valueThe study has addressed the specific research gap of under-investigation of dynamic capabilities and sustainable competitiveness in international joint ventures. It has investigated a complex model of multiple mediations, yielding interesting quantitative results with qualitative insights; which is rare to match in literature.

Comprehending a knowledge framework as a source of dynamic capabilities in IJVs through PLS-SEM

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Madhavi Kapoor ◽  
Vijita Aggarwal
Keyword(s):  
Knowledge Transfer ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Global Market ◽  
Innovation Performance ◽  
International Joint Ventures ◽  
Mediation Effect ◽  
Equation Modeling ◽  
Content Type

Purpose This study aims to investigate the relationship among knowledge transfer enablers, knowledge transfer process, absorptive capacity and innovation performance in the context of Indian international joint ventures (IJVs). These elements are woven with the thread of dynamic capabilities theory (DCT) into an integrated framework. Design/methodology/approach Data analysis is conducted on a quantitative survey of 196 IJVs with partial least squares structural equation modeling as the statistical technique. Findings Co-learning strategy, collaborative trust culture, information technology-based resources and systems and organizational structural design are found to be significant knowledge transfer enablers. Absorptive capacity has a complementary partial mediation effect on the positive relationship between knowledge transfer and innovation performance of Indian IJVs. Research limitations/implications The study has pioneered in explicating the criticality of IJV’s internal dynamics to cope with the global market dynamism in a much needed Indian context. Practitioners must focus on building dynamic capabilities in IJVs to make them sustainably competitive, as proposed and evaluated by this study. Further, IJV managers need to strategize their resources, routines and structure dynamically to foster knowledge transfer and innovativeness. Originality/value The comprehensive model on DCT offered by this study is rare to match in literature with a completely new context, which is the need of the hour.

Unravelling the role of guanxi in the formation and management of international joint ventures – a systematic review of the literature

2021 ◽  
Vol 31 (1) ◽  
pp. 103-126
Author(s):  
Xiaoli Zhao ◽  
Pavel Castka
Keyword(s):  
Decision Making ◽  
Joint Ventures ◽  
International Joint Ventures ◽  
Control Mechanisms ◽  
Managerial Decision ◽  
Content Type ◽  
Institutional Void ◽  
International Joint ◽  
Business In China

Purpose The formation of international joint ventures (IJVs) is one of the prevalent approaches for Western companies to conduct business in China. Yet, doing business in China is difficult for many firms, partially because of the institutional voids that are created by weak formal institutions. The paper aims to focus on the role of guanxi (an informal institution and a company capability that fills such institutional void) in the formation and management of IJVs. Design/methodology/approach A systematic literature review on the role of guanxi in IJV formation and management is conducted based on papers published in top international business journals between 2005 and 2020 – in total, 47 papers are included in the review. Findings The findings of the study are presented in four themes, namely, the role of guanxi as social capital in IJV formation, the role of trust in guanxi-based IJVs, the role of control mechanisms in balancing high reliance on trust in guanxi-based IJVs and the role of guanxi in managing inconsistencies in the regulatory environment. The analysis also reveals that guanxi has a positive effect on the development of IJVs if control between the parent firms is well balanced; otherwise, guanxi can trigger opportunism and leads to failures. Practical implications The study unravels how guanxi leads to successful outcomes in IJV formation and management, which assist managers who operate IJVs with their decision-making. Originality/value To the best of the authors’ knowledge, no previous paper has critically analysed the literature on IJVs using a guanxi perspective at micro (personal), meso (business) and (macro) governmental levels. This approach allows for providing more nuanced view of the role of guanxi in the formation and management of IJVs and aligns more closely with managerial decision-making.

Trust-performance relationship in international joint ventures: the moderating roles of structural mechanisms

2017 ◽  
Vol 32 (7) ◽  
pp. 962-973 ◽  
Author(s):  
Tahir Ali ◽  
Saba Khalid
Keyword(s):  
Transaction Cost ◽  
Joint Ventures ◽  
International Joint Ventures ◽  
Equation Modeling ◽  
Moderating Effects ◽  
Content Type ◽  
Resource Complementarity ◽  
International Joint ◽  
Ijv Performance ◽  
Structural Mechanisms

Purpose This study aims to investigate the relationship between trust and performance in international joint ventures (IJVs) with the moderating effects of the structural mechanisms from transaction cost approach. Design/methodology/approach Using web-survey, data are collected from 89 IJVs of Northern European firms in Asia, Europe and America. Empirical data are analyzed with structural equation modeling and estimates moderating effects of symmetric dependence, symmetric equity share and resource complementarity. Findings The findings offer some interesting insights for transaction cost and the social exchange theory. This study demonstrates that a symmetric equity share between IJV partners does not moderate the trust–performance relationship, while a symmetric dependence and resource complementarity between partners effect positively. Therefore, trust takes on greater importance in enhancing IJV performance under symmetric dependence and resource complementarity and symmetric equity share between IJV partners deprecates the importance of equity distribution. Practical implications A symmetric dependence prevents the deceit from either partner in trusting relationships. Further, a trustful relationship enhances IJV performance regardless of the equity share in IJVs. IJVs with asymmetric equity share can also be successful, provided that IJV partners develop inter-partner trust. Originality/value The extant research has not examined how the trust–performance relationship is contingent on structural mechanisms of IJVs that transaction cost economics deem necessary to prevent opportunistic behavior. Three structural mechanisms of symmetric dependence, symmetric equity share and resource complementarity moderate the trust–performance relationship in IJVs.

Exploring individual-level and group-level levers for inter-organizational knowledge transfer

2014 ◽  
Vol 21 (4) ◽  
pp. 274-287 ◽  
Author(s):  
Jan Merok Paulsen ◽  
Kjell Brynjulf Hjertø
Keyword(s):  
Knowledge Transfer ◽  
Hierarchical Linear Modeling ◽  
Absorptive Capacity ◽  
Explanatory Power ◽  
Organizational Knowledge ◽  
Equation Modeling ◽  
Individual Autonomy ◽  
Group Level ◽  
Content Type

Purpose – This purpose of this article is to contribute to the research on the role of individual and group-level autonomy and absorptive capacity for inter-organizational knowledge transfer. Design/methodology/approach – The study investigated a field sample of 274 individual participants in 82 groups who were taking part in a large-scale benchmarking project in the Norwegian public sector. Hypotheses were developed and tested by using multiple regression, structural equation modeling and hierarchical linear modeling and included an empirical test of moderator effects. Findings – The findings suggest that individual and group autonomy, along with individual experiences of absorptive capacity, supports complementarily inter-organizational knowledge transfer. Research limitations/implications – The study reinforces the idea that individual and group autonomy are enabling conditions for knowledge transfer from project settings to parent organizations. Absorptive capacity, in line with more recent theorizing, is conceived of and measured as an organizational meta-routine, and we recommend replication of this study in various multi-level settings using longitudinal designs. Practical implications – The study encourages managers to focus on distributing powers to individual facilitation and boundary-spanning roles and on creating cross-functional venues that promote the sharing of knowledge across different organizational units. The study also recommends that practitioners pay attention to the prominent role of autonomy at both the individual and group levels to support the dissemination of knowledge across boundaries. Originality/value – The study provides empirical evidence regarding the simultaneous role of individual autonomy, group autonomy and absorptive capacity that together provide the explanatory power required for knowledge transfer in inter-organizational settings.

Intellectual capital and business performance: the role of dimensions of absorptive capacity

2019 ◽  
Vol 21 (1) ◽  
pp. 23-39 ◽  
Author(s):  
Syed Saad Ahmed ◽  
Jia Guozhu ◽  
Shujaat Mubarik ◽  
Mumtaz Khan ◽  
Essa Khan
Keyword(s):  
Absorptive Capacity ◽  
Intellectual Capital ◽  
Business Performance ◽  
Partial Least Square ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship ◽  
Realized Absorptive Capacity

Purpose The purpose of this paper is to empirically examine the mediating role of potential and realized absorptive capacity in intellectual capital (IC) and business performance. It also investigates the direct impact of the components of IC on business performance. Design/methodology/approach Partial least square-structural equation modeling (PLS-SEM) was used to assess the effect of IC dimensions on performance and to analyze the mediating role of absorptive capacity in this relationship. Data were collected from 192 managers using a survey questionnaire with Likert scale items. Findings The findings of the study show that potential absorptive capacity does not intervene in the relationship between the components of IC and those of business performance. However, realized absorptive capacity, measured as the transformation and exploitation of knowledge, played a positive mediating role in the relationship between the dimensions of IC and those of business performance. Social capital was also noted as a weak predictor of business performance, while human capital and organizational capital had a profound positive influence. Originality/value This study contributes to the literature on IC by examining the role of realized and potential absorptive capacity in the relationship between IC components and firm performance. This research also helps practitioners recognize the importance of transformation and the exploitation of knowledge for business performance.

Knowledge transfer from business schools to business organizations: the roles absorptive capacity, learning motivation, acquired knowledge and job autonomy

2017 ◽  
Vol 21 (5) ◽  
pp. 1240-1253 ◽  
Author(s):  
Nguyen Dinh Tho
Keyword(s):  
Knowledge Transfer ◽  
Absorptive Capacity ◽  
Business Schools ◽  
Business Students ◽  
Learning Motivation ◽  
Job Autonomy ◽  
Business Organizations ◽  
Content Type ◽  
Service Training

Purpose The purpose of this paper is to investigate the impacts of absorptive capacity, learning motivation and acquired knowledge on knowledge transfer from business schools to business organizations, as it has been realized that in-service training business students can serve as a channel as well as a source in this type of knowledge transfer. The study also examines the mixed moderating role of job autonomy in the relationship between acquired knowledge and knowledge transfer. Design/methodology/approach A sample of 344 in-service training business students in Vietnam was surveyed to collect data. Confirmatory factor analysis was used to validate the measures, and structural equation modeling was used to test the hypotheses. Findings The findings reveal that absorptive capacity positively affects acquired knowledge but it does not have an effect on knowledge transfer. Learning motivation, however, has positive effects on both acquired knowledge and knowledge transfer. The findings also indicate that acquired knowledge is a determinant of knowledge transfer. Finally, job autonomy plays the role of a mixed moderator in the relationship between acquired knowledge and knowledge transfer. Practical implications This study signals the participating parties –business schools, business organizations and in-service training business students –that absorptive capacity, learning motivation, acquired knowledge and job autonomy are critical to the transfer of knowledge from business schools to business organizations. Originality/value This study contributes to the literature on university-to-industry knowledge transfer by providing empirical evidence for key determinants of knowledge transfer from business schools to business organizations through a new channel of knowledge transfer – in-service training business students.

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