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

Abstract

PurposeThis 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/approachData analysis is conducted on a quantitative survey of 196 IJVs with partial least squares structural equation modeling as the statistical technique.FindingsCo-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/implicationsThe 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/valueThe 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.