Comprehending a knowledge framework as a source of dynamic capabilities in IJVs through PLS-SEM

Abstract

Purpose This study aims to investigate the relationship among knowledge transfer enablers, knowledge transfer process, absorptive capacity and innovation performance in the context of Indian international joint ventures (IJVs). These elements are woven with the thread of dynamic capabilities theory (DCT) into an integrated framework. Design/methodology/approach Data analysis is conducted on a quantitative survey of 196 IJVs with partial least squares structural equation modeling as the statistical technique. Findings Co-learning strategy, collaborative trust culture, information technology-based resources and systems and organizational structural design are found to be significant knowledge transfer enablers. Absorptive capacity has a complementary partial mediation effect on the positive relationship between knowledge transfer and innovation performance of Indian IJVs. Research limitations/implications The study has pioneered in explicating the criticality of IJV’s internal dynamics to cope with the global market dynamism in a much needed Indian context. Practitioners must focus on building dynamic capabilities in IJVs to make them sustainably competitive, as proposed and evaluated by this study. Further, IJV managers need to strategize their resources, routines and structure dynamically to foster knowledge transfer and innovativeness. Originality/value The comprehensive model on DCT offered by this study is rare to match in literature with a completely new context, which is the need of the hour.

Demystifying the role of internal dynamics in the path of innovative competitiveness: a serial mediation model of international joint ventures

“…Meta-analytical studies have shown that organizational and managerial dynamic competencies are inevitable for a firm's innovativeness and sustainability (Lee and Kelley, 2008). Numerous researchers across the globe have emphasized the role of technical ability, strategic agility, cultural cognizance and structural flexibility as knowledge management enablers and innovation fostering agents (Aggarwal and Kapoor, 2020; Ashtiani, 2014; Borges et al , 2019; Dyer and Singh, 1998; Gim and Cheah, 2020; Goh, 2002; Huang and Chiu, 2020; Kapoor and Aggarwal, 2021; Karidou, 2008; Lemon and Sahota, 2004; Rhodes et al , 2008; Schilke et al , 2018; Shams et al , 2020). Thus, these four competencies are explicated below for further conceptualization.…”

“…After organizational strategies, organizational culture is another crucial element in determining the learning, performance and sustainability of the firm (Goh, 2002; Kapoor and Aggarwal, 2021; Montreuil et al , 2020; Rhodes et al , 2008). Thus, this study has adopted cultural cognizance as the second dynamic capability (DC) or competency.…”

“…It refers to the organizational setup of its management hierarchy and authority–responsibility relationships (Rhodes et al , 2008). Flexible structure helps in effective KT and stimulates organizational innovativeness (Alves and Galina, 2020; Ashtiani, 2014; Kapoor and Aggarwal, 2021; Paswan and Wittmann, 2009; Rhodes et al , 2008; Zheng et al , 2010).…”

“…Knowledge processes foster the firm's AC, newly obtained knowledge resources help in enhancing the AC (Costa and Monteiro, 2016; Minbaeva et al , 2003). Once the knowledge is transferred in an international joint venture, it is expected to generate results in terms of organizational performance, which is seen to be catalyzed through higher AC (Kapoor and Aggarwal, 2021).…”

“…These innovation outcomes are witnessed in terms of product and process innovation, radical innovation, technological and administrative innovation, service innovation, etc. (Braunerhjelm et al , 2018; Deloitte, 2017; Kapoor and Aggarwal, 2021; Wiltshier and Edwards, 2014). Thus, this study incorporates innovativeness as the endogenous variable in the research model.…”