Determinants of technology acquisition in international equity partnerships: an examination of international joint ventures and international acquisitions

Abstract

Multinational enterprises (MNEs) have displayed a clear propensity to establish international equity partnerships (IEPs) (i.e., international joint ventures and international acquisitions) as a key strategic option. In addition, the acquisition of technological capabilities has been established as essential to enhance the competitiveness of IEPs in foreign markets. This study seeks to identify and assess key elements of technology acquisition through three functional perspectives (i.e., characteristics of technology acquirers, characteristics of the inter-partner relationship and the support by knowledge transferors) in IEPs. The study further examines the differences in the importance of these variables and how they impact technology acquisition in a comparison between the two organisational modes. The findings reveal both similarities and differences in the relative importance of elements such as trust, intent to learn, international experience and participation of foreign expatriate managers that affect technology acquisition between the two types of IEPs. The findings provide some useful insights for practicing managers in MNEs who are intending to enter foreign markets in either of the IEP formation modes.