Differences in knowledge acquisition mechanisms between IJVs with Western vs Japanese parents

Abstract

PurposeThe main objective of this study is as follows: while “knowledge acquisition in international joint ventures (IJVs)” has been widely in the limelight, the question of whether learning mechanisms in IJVs with Western vs Japanese parents are different has not yet been answered. In order to fill the current gap in the literature, this research seeks to answer the question by focusing on the absorptive capacity perspective.Design/methodology/approachThe data were obtained by survey. A total of 1,207 questionnaires were posted to the CEOs of IJVs in Korea and 288 were returned, 42 of which were unusable, thus giving a response rate of 20.38 percent.FindingsBy using OLS regressions, two key findings are reported. First, the importance of absorptive capacity of IJVs in order to acquire foreign technology from parent firms is confirmed. Second, the results indicate that IJVs with Japanese multinational firms do not show different patterns of technology acquisition compared with IJVs with Western firms. Based on the findings, it is concluded that the learning mechanisms facilitating technology acquisition in IJVs is not highly influenced by foreign origins.Originality/valueTo reiterate, “knowledge acquisition in IJVs” has been widely in the limelight. However, no one has empirically analyzed the distinctions in learning mechanisms in IJVs with Western vs Japanese parents. This research contributes to the current literature by confirming the minimal substantial difference between them.