Knowledge Transfer as a Means for Relationship Development: A Kazakhstan–Foreign International Joint Venture Illustration

Abstract

Developing effective international joint ventures (IJVs) is critical for firms entering economies in transition, such as Kazakhstan. The resource-based view of the firm forms the foundation to examine the influence of knowledge transfer between IJV partners. Traditionally, the transfer of knowledge between IJV partners has been theorized to lessen dependence, increasing IJV instability. However, the relationship development literature indicates that the exchange of assets between partners can strengthen relationship ties, enhancing IJV stability. The authors use a sample of 87 matched dyads from two-party IJVs formed in Kazakhstan to examine the influence of knowledge transfer between IJV partners on commitment and resulting satisfaction. The results, supportive of relationship development theory, indicate that Kazakhstan–foreign IJVs with higher levels of knowledge transfer resulted in higher levels of firms’ commitment to and satisfaction with their relationships, thus supporting a relationship development perspective of knowledge transfer. The authors address implications for academics and practitioners.

Socio-political processes in international management in post-socialist contexts: Knowledge, learning and transnational institution building

“…Child (2000a) refers to such structural views of knowledge transfer and management learning as 'low context', because they tend to ignore the relevance of local factors to emerging business practices by emphasizing forms of economic, technological and/or psychological universalism. Criticized as mechanistic, shallow and de-contextualized (Djelic and Quack, 2002;Griffith et al, 2001), this concept of 'transfer' tends to ignore empirical counter-evidence that, for example, foreign ownership does not always effect the necessary changes in management and organization (Pollert, 1999), and may even bow in significant ways to local practices (Whitley and Czaban, 1998).…”

“…In Western/post-socialist ventures, however, knowledge needs tend to be highly asymmetrical, because of systematic knowledge gaps that are typical of former SOEs (Griffith et al, 2001;Si and Bruton, 1999). While local partners need Western management expertise in order to survive, foreign partners see local knowledge -including cultural and language -as relatively insignificant in strategic terms, creating a balance of dependency of the local on the foreign partner.…”

“…Many postsocialist enterprises have, however, entered into alliances with foreign firms as the preferred way of updating technology, acquiring capital or gaining access to existing global networks or supply chains. Acquisition of knowledge is often cited as a major reason for smaller firms entering strategic alliances with more powerful Western MNCs (Griffith et al, 2001;Si and Bruton, 1999). Geppert and Merkens (1999) found strong local enthusiasm for acquiring new ideas and practices from the West.…”

International Joint Venture (IJV) marketing performance: alternative approaches to performance measurement

“…Their satisfaction measure focused on the broad based evaluation of the IJV and the IJV relationship rather than performance. Ding (1997), Griffith et al (2001) and Lee and Beamish (1995) also used a perceptual measure of a parent's satisfaction with an IJV's performance (e.g., "To what extent has the IJV met the expectations of your firm?"). The main advantage of this type of measure is its ability to provide this type of information regarding the extent to which the IJV has achieved its overall objectives.…”

Planned Marketing Adaptation and Multinationals’ Choices between Acquisitions and Greenfields

“…They have found that, compared with MNEs aiming for low marketing adaptation, those aiming for high adaptation are more likely to choose joint ventures (JVs) with local firms over wholly owned subsidiaries (WOSs) (Özsomer, Bodur, and Cavusgil 1991;Rau and Preble 1987). Such JVs allow adaptive MNEs to gain access to their partners' local market knowledge and brand names (Griffith, Zeybek, and O'Brien 2001;Tsang, Nguyen, and Erramilli 2004), thereby facilitating local marketing adaptation.…”