Performance implications of capability exploitation and upgrading in international joint ventures
- 551 Downloads
This study investigates (1) how capability exploitation and capability upgrading are associated with IJVs’ financial and competitive outcomes in an emerging market, and (2) how environmental dynamism (the key construct characterizing an emerging market) and interpartner cooperation (the key construct describing an IJV) moderate the effect of capability exploitation and upgrading on IJV performance.
Results suggest that IJVs in a foreign emerging market tend to perform better in both financial and competitive terms when they possess greater abilities to exploit current resources contributed by foreign and local partners and to continuously upgrade and develop new capabilities.
The contribution of capability exploitation and upgrading to IJV performance is stronger when IJVs operate in a more dynamic environment. When interpartner cooperation is superior, capability exploitation plays a bigger role in improving performance.
Key WordsCapability Exploitation Capability Upgrading Dynamic Capability Organizational Learning International Joint Venture China
Unable to display preview. Download preview PDF.
- Arino, A., Partner Selection and Trust Building in West European-Russian Joint Ventures: A Western Perspective, International Studies of Management and Organization, 27,1, 1997, pp. 19–37.Google Scholar
- Benner, M.J./ Tushman, M. L., Exploitation, Exploration, and Process Management: The Productivity Dilemma Revisited, Academy of Management Review, 28,2, 2003, pp. 238–256.Google Scholar
- Buckley, P./ Casson, M., The Theory of Cooperation in International Business, in Contractor, F. J./ Lorange, P. (eds.), Cooperative Strategies in International Business, Lexington: Lexington Books 1998, pp.31–34.Google Scholar
- Cantwell, J., The Globalization of Technology: What Remains of the Product Life Cycle Model?, Cambridge Journal of Economics, 19,1, 1995, pp. 155–175.Google Scholar
- Day, G. S., Continuous Learning about Markets, California Management Review, 36, Summer Issue, 1994, pp. 9–31.Google Scholar
- Doz, Y./ Santos, J./ Williamson, P. J., From Global to Metanational, Boston: Harvard Business School Press 2003.Google Scholar
- Gupta, A. K./ Smith, K. G./ Shalley, G. E., The Interplay Between Exploration and Exploitation, Academy of Management Journal, 49,4, 2006, pp. 693–706.Google Scholar
- Holm, U./ Holmström, C./ Sharma, D., Competence Development through Business Relationships or Competitive Environment? Subsidiary Impact on MNC Competitive Advantage, Management International Review, 45,2, 2005, pp. 197–218.Google Scholar
- Kogut, B./ Zander, U., Knowledge and the Speed of the Transfer and Imitation of Organizational Capabilities: An Empirical Test, Organization Science, 6,1, 1995, pp. 76–93.Google Scholar
- Levitt, N. S./ March, J. G., “Organizational Learning,” in Scott, W. R. (eds.), Annual Review of Sociology, 1988, 14, pp. 319–340.Google Scholar
- Madhok, A./ Tallman, S. B., Resources, Transactions and Rents: Managing Value through Interfirm Collaborative Relationships, Organization Science, 9,3, 1998, pp. 326–340.Google Scholar
- March, J. G., Exploration and Exploitation in Organizational Learning, Organization Science, 2,1, 1991, pp. 71–87.Google Scholar
- Moore, K., A Strategy for Subsidiaries: Centres of Excellences to Build Subsidiary Specific Advantages, Management International Review, 41,3, 2001, pp. 275–290.Google Scholar
- Moore, K./ Birkinshaw, J., Managing Knowledge in Global Service Firms: Centers of Excellence, Academy of Management Executive, 12,4, 1998, pp. 81–92.Google Scholar
- Perez, J./ Meier, J./ Woetzel, J., MNCs in China, The McKinsey Quarterly, 2, 1995, pp. 21–33.Google Scholar
- Szulanski, G., Exploring Internal Stickiness: Impediments to the Transfer of Best Practice within the Firm, Strategic Management Journal, 17, Winter Issue, 1996, pp. 27–43.Google Scholar
- Tallman, S. B./ Fladmoe-Lindquist, K., Internationalization, Globalization and Capability: Based Strategy, California Management Review, 45,1, 2002, pp. 116–132.Google Scholar
- Teece, D. J., Capturing Value from Knowledge Assets: The New Economy, Markets for Know-how and Intangible Assets, California Management Review, 40,3, 1998, pp. 55–79.Google Scholar
- United Nations Conference on Trade and Development (UNCTAD), World Investment Report, New York: United Nations 2004.Google Scholar
- Volberda, H. W., Building the Flexible Firm: How to Remain Competitive, Oxford: Oxford University Press 1998.Google Scholar
- Williamson, O. E., The Economic Institutions of Capitalism, New York: Free Press, 1985.Google Scholar