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Learning through the international joint venture: lessons from the experience of China's automotive sector

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  • Kyung-Min Nam

Abstract

This study explores why international joint ventures (IJVs) based on the global South may meet with only partial success in nurturing local technological capability. The experience of China's passenger-vehicle sector demonstrates that in the existence of a substantial technological capability gap between alliance partners, the IJV arrangement is likely to create a "passive" learning mode, and learners using this IJV arrangement may be able to strengthen their production capability but leaving their project execution and innovation capabilities largely undeveloped. Copyright 2011 The Author 2011. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

Suggested Citation

  • Kyung-Min Nam, 2011. "Learning through the international joint venture: lessons from the experience of China's automotive sector," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 20(3), pages 855-907, June.
    • Handle: RePEc:oup:indcch:v:20:y:2011:i:3:p:855-907
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    File URL: http://hdl.handle.net/10.1093/icc/dtr015
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    Cited by:

    1. Giorgio Prodi & Federico Frattini & Francesco Nicolli, 2018. "The diffusion and embeddedness of innovative activities in China," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(1), pages 71-106, April.
    2. John Reilly, 2015. "Energy and Development in Emerging Countries," Revue d’économie du développement, De Boeck Université, vol. 23(HS), pages 19-38.
    3. Oh, Eun-Teak & Chen, Hao-Cheng & Nakamoto, Ryuichi & Liu, Ren-Jye, 2024. "Alliance portfolio configuration strategies as catalysts for innovation: Evidence from international alliances between Japanese and Taiwanese manufacturing corporations," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    4. Wu, Jingwen & Posen, I. Daniel & MacLean, Heather L., 2021. "Trade-offs between vehicle fuel economy and performance: Evidence from heterogeneous firms in China," Energy Policy, Elsevier, vol. 156(C).
    5. Bukhvalov, A. & Alekseeva, O., 2016. "International joint venture acquisition by a foreign or local partner," Working Papers 6439, Graduate School of Management, St. Petersburg State University.
    6. Akçomak, Ibrahim Semih & Bürken, Serkan, 2019. "The middle-technology trap: The case of the automotive industry in Turkey," MERIT Working Papers 2019-006, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. Nam, Kyung-Min, 2015. "Compact organizational space and technological catch-up: Comparison of China's three leading automotive groups," Research Policy, Elsevier, vol. 44(1), pages 258-272.
    8. Howell, Sabrina T., 2018. "Joint ventures and technology adoption: A Chinese industrial policy that backfired," Research Policy, Elsevier, vol. 47(8), pages 1448-1462.
    9. Kishimoto, Paul N. & Zhang, Da & Zhang, Xiliang & Karplus, Valerie J., 2013. "Modeling regional transportation demand in China and the impacts of a national carbon constraint," Conference papers 332390, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Andoni Maiza & Ricardo Bustillo, 2018. "Analysis of the relevance of China’s development for main European automotive manufacturing countries," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(3), pages 403-424, September.
    11. Bernat, Stefan & Karabag, Solmaz Filiz, 2019. "Strategic alignment of technology: Organising for technology upgrading in emerging economy firms," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 295-306.
    12. Xing, Yijun & Liu, Yipeng & Lattemann, Christoph, 2020. "Institutional logics and social enterprises: Entry mode choices of foreign hospitals in China," Journal of World Business, Elsevier, vol. 55(5).
    13. Jean, Ruey-Jer Bryan & Kim, Daekwan & Chiou, Jyh-She & Calantone, Roger, 2018. "Strategic orientations, joint learning, and innovation generation in international customer-supplier relationships," International Business Review, Elsevier, vol. 27(4), pages 838-851.
    14. Helveston, John P. & Wang, Yanmin & Karplus, Valerie J. & Fuchs, Erica R.H., 2019. "Institutional complementarities: The origins of experimentation in China’s plug-in electric vehicle industry," Research Policy, Elsevier, vol. 48(1), pages 206-222.
    15. Li, Zhi & Xu, Jia & Tian, Jingjing & Wei, Jiuchang, 2023. "Consumers’ reaction to automobile recalls: The role of corporate non-market strategies and interstate relations," International Business Review, Elsevier, vol. 32(1).
    16. Ruey-Jer Bryan Jean & Rudolf R. Sinkovics & Daekwan Kim, 2017. "Antecedents and Outcomes of Supplier Innovativeness in International Customer–Supplier Relationships: The Role of Knowledge Distance," Management International Review, Springer, vol. 57(1), pages 121-151, February.
    17. Kyung-Min Nam, 2017. "Is spatial distribution of China’s population excessively unequal? A cross-country comparison," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(2), pages 453-474, September.
    18. Shi, Wen & Leng, Kaijun & Van Nieuwenhuyse, Inneke & Liu, Yucui & Chen, Xiaohong, 2020. "Vehicle recalls performance in an emerging market: Evidence from the comparison between China and U.S," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 290-307.

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