Reverse and conventional knowledge transfers in international joint ventures

Abstract

We 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 using survey data from 199 Korean IJVs. Findings reveal the symbiotic relationships between reverse and conventional knowledge. The transfer of conventional knowledge presents opportunities for interactions between employees of the IJV and the foreign parent firm, creating a platform for bi-directional tacit knowledge flows and a basis for informal mutual learning. Other findings include: a positive impact of shared vision on reverse knowledge that is fully mediated by conventional knowledge transfer; a negative relationship between IJV performance and reverse knowledge flows; and confirmation of prior studies' findings that IJVs' learning intentions and capability to absorb knowledge positively affect conventional knowledge transfers.