The Impact of Foreign Partner’s Senior Management Prior Experience and Commitment on Trust and Knowledge Transfer in International Strategic Alliances

Abstract

The positive effects of trust and knowledge transfer on the performance of International Strategic Alliances (ISAs) have been identified in the International Business (IB) literature. Based on elements from the Social Exchange Theory (SET) and the Resource Based View (RBV), this paper examines the impact of the foreign partner’s senior management a) prior experience in the establishment and management of ISAs, and b) commitment to the alliance on the level of trust the foreign partner has towards the local partner, and the subsequent effect of partner trust on the level of the foreign partner’s knowledge acquisition from its participation in the alliance. The research sample consists of 171 ISAs of Greek SMEs, formed and operating in the under-researched region of South East Europe. The empirical results are discussed in detail and managerial implications and issues for future research are presented as well. The findings of this study contribute to the relevant IB literature by verifying prior research findings regarding the role of specific antecedents of trust and its effect on international knowledge transfer and by investigating these impacts in the under-researched region of South East Europe since, to the best of the authors’ knowledge, no similar research has been conducted before in this region.