SOAS Research Online

Abstract

Prior studies emphasize university-industry cooperation as a non-market strategy associated with the innovation performance of firms, in which universities directly provide advanced technologies to firms for commercialization. However, the role and mechanisms of university-industry collaboration in the context of IJVs operating low-carbon technology sector of emerging markets are still under debate. In this paper, we build on the dynamic capability concept and discuss the interaction between dynamic capabilities and IJV-university relationships to understand the innovation adaptiveness of low-carbon innovation in short-term, mid-term and long-term perspectives. Based on longitudinal multiple case studies, we undertook two rounds of fieldwork in 2018 and 2020, with 37 informants in 66 semi-structured interviews. Our findings propose that IJV-university cooperation takes different forms of learning channels over time. IJVs can develop sensing, assimilation and transformation capabilities by effectively leveraging their relationship with local universities to facilitate innovation adaptiveness to meet the needs of emerging markets. To facilitate innovation adaptiveness, sensing capabilities 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 builds a sustainable competitive advantage in the domestic market and approaching international markets.