Relational capital, knowledge transfer and performance in international joint ventures (IJVs) in Korea

Abstract

The purpose of this study is to extend our understanding of the impact relational capital has on the transfer of knowledge from foreign parents to international joint ventures (IJVs) and the impact of knowledge transfer on performance. Drawing from previous studies on IJVs, we develop and empirically test a model linking relational capital, knowledge transfer and performance. The empirical setting is a random sample of IJVs in Korea. Structural equation modeling (SEM) was employed to test the research model using AMOS version 17.0. The results indicate that strong commitment to the IJV by parents and a strong communication system play a key role in the transfer of knowledge to the IJV and positively influence its performance. Surprisingly trust between the parents does not contribute significantly to the explanatory powers of the model. In particular, our study highlights the importance of relational capital development to IJVs success.