Conventional and Reverse Knowledge Transfers in International Joint Ventures

Abstract

The purpose of this paper is to develop and test a theoretical model to examine the dynamics of knowledge transfers from foreign parent firms to their IJVs (conventional transfers) and knowledge transfers from IJVs to their foreign parent firms (reverse knowledge transfers).We estimated a structural equation model (AMOS 20.0) using survey data from 199 Korean IJVs. The key findings highlight the importance of the interaction between conventional and reverse knowledge transfer processes. We find that shared vision does not directly affect reverse knowledge transfer; rather, shared vision positively impacts reverse knowledge transfer indirectly through the full mediating effect of conventional knowledge transfer. We also find negative relationships between IJV performance and reverse knowledge flows, reflecting lower levels of engagement between parents and IJVs when IJVs perform well. This results in a lower level of learning by parents. The study confirms that learning intents and capability to absorb knowledge of IJVs positively affect conventional knowledge transfers.