Knowledge Acquisition from Foreign Partners in International Joint Ventures: Determinants and Outcomes

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Tamma Elhachemi, Abd. Rahim b. Jaguli, Fakhrorazi Ahmad



The rapid and profound change in the global economy is creating immense transformation of the economic system in developing countries. Confronted with the increasing pressure for competitiveness, local firms are constantly seeking to adjust by acquiring advanced technology and managerial skills. This can be attained through the formation of international joint ventures (IJVs) with foreign partners. Although IJVs knowledge acquisition has been in the focus of many IJVs researches, insufficient research is yet available, gaps may exist or the issue may have been understudied. This conceptual paper contributes to the literature by presenting a model to describe the relationship between knowledge acquisition in IJVs and its two determinants, transfer mechanism and management practice; and the role of competitiveness as a mediator between knowledge acquisition and the performance of IJVs. This study is in support of the current literature by promoting a better understanding by way of establishing the inadequacy and helping to clarify the predictors affecting this issue. With regard to the research, strategies can be better developed to achieve a desired outcome hence bridging the gap between researches and practice. The current study also explains the methodology applied and offer recommendations for future research.

Keywords: IJVs knowledge acquisition, transfer mechanisms, management practices, IJVs performance, IJVs competitiveness