Knowledge acquisition from foreign parents in international joint ventures: an empirical examination in the Hungarian context

In this paper, we examine organizational characteristics, structural mechanisms and contextual factors that influence knowledge acquisition from the foreign parent in international joint ventures (IJVs). We in turn relate assessments of knowledge acquisition to IJV performance. The data come from a survey of IJVs in the Hungarian context, where learning and knowledge acquisition from the foreign parent is thought to be particularly critical. Adaptation mechanisms, such as capacity to learn, articulated goals, and structural mechanisms, such as the provision of training, technology and managerial assistance by foreign parents, all were positively associated with the degree to which IJVs reported acquiring knowledge from their foreign parents. We also found limited support for the belief that cultural conflicts can impede knowledge acquisition, but only for two-party joint ventures with 50/50 equity arrangements. We also looked at the relationship between knowledge acquisition and different dimensions for evaluating IJV performance. The relationship between knowledge acquisition and performance was significant for all indicators of performance, through knowledge acquisition from the foreign parent and the organizational characteristics hypothesized to enhance IJV knowledge acquisition affected assessments of some dimensions of performance more than others. Our findings contribute to advancing knowledge about the relationship between organizational characteristics and organizational knowledge acquisition in IJVs, as well as the relationships between knowledge acquisition and different dimensions of IJV performance. Journal of International Business Studies (2007) 38, 3–18. doi:10.1057/palgrave.jibs.8400243