Learning from cooperative inter-organizational relationships: The case of international joint venture

Abstract

Purpose: Facing increasing global competition, firms must ceaselessly acquire new knowledge and enhance their capabilities in response to rapidly changing customer requirements. Amidst the varying collaborative relationships that occur between firms, it is particularly important for firms to learn from international joint ventures. However, few existing studies have explored this issue empirically. Rooted in the organizational learning perspective, this study seeks to investigate the learning intent, learning process and learning outcomes of host parent companies taking part in international joint ventures, and to propose and verify a theoretical model of learning for host parent companies. Design/methodology/approach: The study used Taiwanese firms as research objects and employed the survey method to collect sample data. In total, 64 international joint ventures involving Taiwanese firms were collected and analyzed. The objective of this study was to examine the relationships between latent constructs, such as learning intent, learning process and learning outcome. Thus, the structural equation modeling approach was adopted to test the theoretical model. However, the sample size used in this study was small, so the partial least squares (PLS) method was employed. Findings: The empirical results showed that a parent company's learning outcome is affected by the interaction between the parent company and the joint venture, as well as the internal knowledge integration capacity of the parent company. The interaction between the parent company and the joint venture will simultaneously drive the parent's intra-organisational knowledge integration. Moreover, the parent company's strategic intent to learning from the joint venture will affect the parent company's knowledge integration, along with the interaction between the parent company and the joint venture. Likewise, the parent company's learning intent will affect its evaluation of the joint venture's knowledge, while further influencing its intra-organizational knowledge integration. Originality/value: The paper combines the perspectives of learning intent, learning process and learning outcomes in order to propose and test empirically a model that explains how the host parents of developing countries enhance their knowledge and capabilities by means of international joint ventures. Thus, the study attends to the deficiency of the literature in addressing the field of learning through international joint ventures. It also provides some insights and suggestions for firms that regard alliance strategy as a learning opportunity for enhancing a firm's knowledge base and organizational capabilities. © Emerald Group Publishing Limited.