Acquisition of marketing knowledge in small and medium‐sized IJVs

Abstract

Purpose This paper aims to examine the effects of compatible characteristics between parent firms on the extent to which international joint ventures (IJVs) acquire marketing knowledge. Compatible organisational characteristics are a particularly important component for absorptive capacity in that it may play a pivotal role in extending the prior relevant knowledge base and promoting a favourable learning environment. A series of hypotheses based on the literature is tested, which suggests that: there is a close association between IJV size and the level of knowledge acquisition, and compatible characteristics between parents positively influence marketing knowledge acquisition in IJVs. Design/methodology/approach The data were obtained by a survey. Questionnaires were posted to the CEOs of IJVs in Korea. A total of 688 questionnaires were sent out and 128 were returned, giving a response rate of 18.6 per cent. Findings The paper finds that the marginal differences in mean values indicate that firm size does not significantly influence the extent of knowledge acquisition in IJVs. A series of regression analyses was undertaken and it was found that the impact of compatible organisational culture on knowledge acquisition was positive and significant. Research limitations/implications There are some limitations to the study. First, the data used were collected from only one country. Second, only marketing skills were considered, leaving aside other important types of knowledge that can contribute to IJV operations. Third, the measurement used for the acquisition of marketing knowledge has some drawbacks, in that it is based on the perceptual judgements of key managers, without employing objective measurements. In addition, the relatively low response rate and the low number of responses from large firms are clearly further limitations. Practical implications The findings suggest that compatible culture should be a crucial partner selection criterion for both local and foreign firms. Originality/value Very few studies have analysed small and medium‐sized IJVs, and fewer have focused on marketing knowledge acquisition particularly in a dynamically energetic environment (South Korea in this case). The paper also contributes to the current literature by confirming the positive relationship between compatible organisational culture and marketing knowledge acquisition.

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