SOAS Research Online

Abstract

Prior studies emphasise parent-IJV knowledge flows and dynamic capabilities to influence the speed of international knowledge transfer. However, the interaction between IJV-local relationships and dynamic capabilities to boost knowledge transfer speed over time are still debated in emerging markets. In this paper, we build on the dynamic capabilities concept and discuss their interplay with IJV’s organisational relationships to understand the changing speed of knowledge transfer in inter-phase and intra-phase perspectives. Based on a longitudinal multiple case study, we undertook two rounds of fieldwork in 2018 and 2020, with 37 informants in 66 semi-structured interviews. Our findings propose the knowledge transfer of IJVs both reside within the outset of the IJV-parent and the IJV-local relationship. IJVs can develop their sensing, assimilation and transformation capabilities by effectively developing and leveraging their relationship with their parents and various local partners to facilitate knowledge transfer speed across absorption, implementation, and innovation phases. To facilitate knowledge transfer speed, sensing capabilities enable IJVs to identify knowledge gaps in learning transferred knowledge and access external knowledge to fill the gaps, while assimilation/transformation capabilities use acquired external knowledge to enhance IJV’s knowledge base through integration or reconfiguration. Overall, the interaction between dynamic capabilities and external knowledge across phases builds a sustainable competitive advantage in operating in the domestic market and approaching international markets.