How do an alliance firm’s strategic orientations drive its knowledge acquisition? Evidence from Sino-foreign alliance partnership

Abstract

Purpose This paper aims to investigate how a Chinese firm’s strategic orientation impact its knowledge acquisition from its foreign alliance partners through governance mechanisms used in the Sino-foreign alliance partnership. Design/methodology/approach This research first proposes an integrated model which links a firm’s strategic orientations (entrepreneurial and market orientations), governance mechanism (contract and trust controls), and its knowledge acquisition together. Then, this research collected data from 198 Chinese firms involved in Sino-foreign alliances to test the conceptual model. Findings For entrepreneurial-oriented alliance firms, a moderate level of contract and a high level of trust are the most efficient uses of control mechanisms for Chinese firms’ knowledge acquisition. In comparison, for market-oriented alliance firms, both contract and trust control mechanisms should be used at the moderate level to achieve maximum knowledge acquisition from their foreign partners. Originality/value By introducing a new antecedent for the choice of control mechanisms in the context of Sino-foreign alliance relationships, this study empirically finds a non-linear relationship between contract control and knowledge acquisition and confirms the significant role of trust in facilitating knowledge acquisition between alliance partners from the perspective of alliance firms in emerging markets.