International Joint Ventures as Boundary Spanners: Technological Knowledge Transfer in an Emerging Economy

Abstract

We investigate how international joint ventures (IJVs) established in emerging economies help their local suppliers with technological knowledge transfer. Data from 50 Pakistani‐owned Tier 1 suppliers, three of the major assemblers, and policy makers in the Ministry of Industries and Production in Pakistan is collected. Findings suggest that, in the context of the Pakistani emerging economy, IJVs can also play a critical role as the boundary spanners of knowledge transfer. Local suppliers are linked with their global suppliers' networks through associational learning. Social capital between the IJVs and the local component suppliers and the IJVs' willingness to initiate a knowledge transfer dialogue among local and global Tier 1 suppliers are critically important factors that enable this transfer.