Science Research Management ›› 2020, Vol. 41 ›› Issue (6): 130-138.

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Resource knowledge attribute, learning ability and IJV′s control power evolution: A cross-case study

Zhao Hong1, Yang Zhenning2   

  1. 1. School of Business Administration, Nanjing University of Finance and Economics, Nanjing 210046, Jiangsu, China; 2. Business School, University of International Business and Economics, Beijing 100029, China
  • Received:2018-04-14 Revised:2018-09-29 Online:2020-06-20 Published:2020-06-20

Abstract: International joint ventures (IJVs) are considered as an important global expansion and strategic layout organization form. Enterprises in emerging economies see IJVs as an important way to acquire scarce resources, learn advanced technologies and management experience. As an important form of strategic alliance, IJVs has the advantages of reducing investment cost, avoiding political risk, and improving technological innovation ability by making use of partners′ complementary resources. Therefore, IJVs has attracted domestic and foreign enterprises′ attention and popularity. However, since IJVs is a joint venture where both parties share the control right, it is easy for all parties to fight for the control right in order to gain the dominant position of IJVs. In view of the fact many Chinese enterprises are faced with power evolution or even loss of control power in IJVs. This paper, based on the RBV and organizational learning theory combined with the cross-case study method, studies the key resource mastered by both parties how to impact on the control rights evolution in IJVs, and the role of learning ability playing in this process. The paper argues that (1) the key resource knowledge attribute controlled by both parties will affect the dynamic evolution of the control power in IJVs. According to the resource-based view and resource-dependent theory, if the resources are relatively scarce, difficult to imitate and irreplaceable tacit knowledge mastered by one side, such resources can be used as the source of the enterprise′s competitive advantage and the bargaining chips to acquire the control of IJVs. (2) In the process of IJV operation, learning ability will change the both parties′ key resources accumulation and promote control right evolution. The struggle with control right of IJVs is a dynamic game process, and learning ability will lead to the change of accumulation of key resources of the joint venture. Learning ability plays a mediation effect in the accumulation of key resources and the evolution of control right. (3) External and internal factors increase firms′ learning ability effectiveness and speed. Enterprises should focus on external factors, containing trust and communication, and the role of government in improving learning ability effect. Because (1) mutual trust and smooth communication channels between the joint venture parties can restrain the opportunistic behavior of both parties; moreover (2) the government, as the resource owner and policy maker, encourages both parties mutual learning and knowledge transferring by formulating industrial development policies and strengthening intellectual property protection.  〖JP2〗At the same time, the relationship between quality of learning effect and learning foundation within the enterprise is very significant, so (1) the enterprise should continue to increase R&D investment, to strengthen firm′s sustainable learning foundation. (2) Talent is the carrier of knowledge, through the introduction of talent can enrich firm′s knowledge stock , be conducive to the collision of new inspiration, and improve the digestion and absorption of advanced innovative knowledge. (3) Focus on knowledge creation, enterprises should not only pay attention to the study of advanced technology and management experience and other tacit knowledge, but also pay attention to the integration and innovation of knowledge in the process of joint venture. This study has reference value for Chinese enterprises on how to deal with IJV′S control rights evolution to protect their own rights and interests.

Key words: resource knowledge attribute, learning ability, control power evolution, cross-case study