Impact of Alliances on Technological Performance of Local Companies in Emerging Markets: Case of Tunisian Firms.

The evolution of co-operations between firms has permitted a plentiful literature around the conception of the firm and its frontiers and has placed the specificity of competencies and innovation in the heart of the firm analysis. The evolution of the firm is observed according to the technological opportunities and the quality of its own competencies. In this context, the international joint ventures (IJV), between firms belonging to different levels of development, can be considered as a dynamic channel for acquisition new knowledge and improvement of existent competencies. The contractual relation is a challenge for the developing partner to reach a platform of knowledge and improve its competencies. However, the transfer inherent from IJV is not systematic. It is conditioned by the existence of prior core knowledge that could influence the success and the quality of the transfer. Considering this, we propose to measure the performance of the transfer inherent from international joint ventures on the recipient partners in the case of Tunisian firms. For that purpose we based the analysis on responses to a questionnaire sent to the managers in the different sectors in year 2005 and including two types of firms, those being engaged in an IJV and those not. We describe in the first section, the sample selection and the methodology of the analysis. Then we measure the effects of the IJV that are appreciated at two levels: the level of the perception of the managers and the level of the type of supports made by the foreign parent. Empirically we obtain five main effects declined in the evolution of knowledge and learning, the evolution of the tangible asset, the improvement of organizational capacities, the development of the technical learning and finally the tangible capacities. In the section 2, we test the potential absorptive capacity (PACAP), which could have an influence in terms of improving the performance effects of the IJV. The results show a correlation between the considered dimensions of the potential ACAP- the evolution of the R&D expenditure, the R&D unit and the qualifications- and the evolution of knowledge and learning. In section 3, we measure, the influence of the profiles characteristics of the firms, on moderating the IJV’ effects. The results are significant only on “the evolution of the knowledge and learning”. We extend the analysis by testing the influence of each control parameter on improving the previous results. We operate the same analysis by measuring the influence of each profile characteristic separately. We note the significant results for the parameter: Service sector. The other profile characteristics have not an exclusive and direct influence on the improvement of the alliance performance. Finally, we conclude and we underline the limits of this study.transfer; platform of knowledge; international joint ventures;

Foreign investment and productivity growth in Czech enterprises

Firm-level data for the Czech Republic (1992-96) suggest that foreign investments had a positive impact on recipient firms'total factor productivity (TFP) growth. This result is robust to corrections for the sample-selection bias that prevails because foreign investment tends to go to firms with above-average productivity performance. This result is not surprising, given the presumption that foreign investors transfer new technologies and knowledge to partner firms. With some lag, this is likely to be reflected in greater TFP growth. Foreign direct investment appears to have a greater impact on TFP growth than joint ventures, suggesting that parent firms are transferring more know-how (soft or hard) to affiliates than joint venture firms get from their partners. Joint ventures and foreign direct investment together appear to have a negative spillover effect on firms that do not have foreign partnerships. This effect is relatively large and statistically significant. But if the focus is restricted to the impact of foreign-owned affiliates (foreign direct investment) on all other firms in an industry, the magnitude of the negative effect becomes much smaller and loses statistical significance. This result, together with the fact that joint ventures and foreign direct investment together account for significant shares of total output in many industries, suggests that more research is needed to determine how much knowledge diffuses from firms with strong links to foreign firms to firms that do not have such links. Especially important is the extent of spillovers among joint venture firms and between foreign affiliates and firms with joint ventures. Insofar as joint venture firms invest in technological capacity (as suggested by their training efforts), those firms could be expected to be better able to absorb and benefit from the diffusion of know-how. The absence of such capacity may underlie the observed negative spillover effect on other firms in the industry. Longer time series and collection of data on variables that measure firms'in-house technological effort would help identify the magnitude and determinants of technological spillovers.ICT Policy and Strategies,International Terrorism&Counterterrorism,General Technology,Environmental Economics&Policies,Economic Theory&Research,Environmental Economics&Policies,ICT Policy and Strategies,Microfinance,Small Scale Enterprise,Private Participation in Infrastructure

Factors That Influence the Dissemination of Knowledge in Technology Transfer Among Malaysian Manufacturing Employees

The meaning of technology transfer is so wide but mostly involving some form of technology-related exchange. However, in this particular paper, technology transfer is consider as a concept to examine the process of  disseminating knowledge and skills that a person owned to another person in order to generate higher productivity with new approach of producing a particular product or service. Although, many researchers have explored the evolution of technology transfer, nonetheless some drivers are yet to be explored in a Malaysian manufacturing industry. This study, therefore attempts to determine the relationship between absorptive capacity, transfer capacity, communication motivation and learning intent and technology transfer performance. A survey methodology was used in a Japanese multinational company based in Klang Valley, Malaysia. A total of 117 questionnaires were received. Results show that absorptive capacity is the most significant to influence technology transfer performance

Trust, Organizational Controls, Knowledge Acquisition from the Foreign Parents, and Performance in Vietnamese International Joint Ventures

Successful adaptation in strategic alliances "calls for a delicate balance between the twin virtues of reliability and flexibility" [Parkhe 1998]. On one hand, the joint venture must be flexible enough to respond to the uncertainties of competitive business environments because it is not feasible to plan for every possible contingency. Yet, on the other hand, unfettered flexibility invites dysfunctional behavior, such as opportunism and complacency. This delicate balance accompanies a parallel balance between trust and control of the joint venture. The primary goal of this study is to empirically examine this relationship in the context of Vietnamese international joint ventures (IJVs) by building on the model of knowledge acquisition and performance in IJVs established by Lyles and Salk [1996]. This study makes three major contributions to the literature. First it confirms several findings of the original Lyles and Salk study [1996]. Second, we strengthen Lyles and Salk's original model by incorporating multiple measures of both interorganizational trust and control as independent variables. Finally, this study represents one of the first in-depth examinations of business in the emerging Vietnamese economy.http://deepblue.lib.umich.edu/bitstream/2027.42/39713/3/wp329.pd

A Network Perspective on Inter-Organizational Transfer of R&D Capabilities: A Study of International Joint Ventures in Chinese Automobile Industry

Multinational enterprises' transfer of R&D capabilities to their international joint ventures in the less developed countries has been an emerging phenomenon. The purpose of this study is to understand the transfer of R&D capabilities between organizations embedded in drastically different organizational contexts using a network perspective. We identified different networks involved in the R&D capability transfer process from the perspectives of source organization, recipient organization and the interface between them, and analyzed the impact of different attributes of these networks on the effectiveness of R&D capability transfer, based on the notion that R&D capabilities are largely collective knowledge.http://deepblue.lib.umich.edu/bitstream/2027.42/39746/3/wp362.pd

Research on joint ventures in China: progress and prognosis

Previous published studies on international joint ventures (JVs) in China are reviewed and assessed by summarising important research patterns. A model of management of international JVs in China is developed which emphasises the central theme of cross-cultural management. Dimensions in research on international JVs in China and directions for future research are also discussed

Leveraging Internal Competency and Managing Environmental Uncertainty: Propensity to Collaborate in International Markets

Purpose – The choice of an international market entry mode involves two critical considerations, leveraging internal competencies and managing environmental uncertainties in host countries. The purpose of the paper is to explicate how these two considerations affect the propensity to collaborate in international markets. Design/methodology/approach – The paper builds on existing theories and develops hypotheses showing relations between competencies and uncertainty and collaboration in international markets. Findings – Conceptual relations show that the goals of leveraging competencies and managing environmental uncertainty in host countries have varying effects on the level of international collaboration. Originality/value – The effects are shown through the integration of different theories and empirical findings. Furthermore, the significance of collaboration in international market entry decisions is established. Directions for future research are also provided

S&T activities and firm performance - microeconomic evidence from manufacturing in Shanghai

This paper examines the impact of R&D expenditure and technology import on the level and the growth of productivity, as well as on the general economic performance in manufacturing firms with various ownership structures in Shanghai, China. The empirical analyses are based on the firm-level information of a sample of manufacturing firms for the period 1998–2003. We find clear-cut evidence indicating that firms with foreign participation have a productivity advantage over their domestic counterparts. The expenditures on technology import not only have a direct and positive effect on productivity, but also indirectly enhance the absorptive capacity of firms to facilitate in-house R&D activities. This is particularly true for firms with foreign participation, or for firms in sectors with relatively high technical standards. Furthermore, R&D expenditure and technology import may also have positive effects on profitability and export performance, depending on the ownership structure of the firm and the technical standard in the sector.Science and Technology policy; Science and Technology investment; R&D

Antecedents of trust in international joint ventures' (IJVS) performance in developing countries: A review of empirical evidence

Trust in international joint venture has received much attention for the last 20 years. This study highlights the importance of social capital in international joint ventures (IJVs) in developing countries. This paper assesses the impact of antecedents of trust on performance of international joint ventures in developing countries, which is based on social exchange theory. Little attention has been paid to exploring the concept in IJV. The impacts of components of inter partner-fits and relational factors on trust and the effect of trust on performance of IJVs will be considered. In addition the impact of religion and country risk on level of trust in IJVs in these countries will be evaluated. A framework has been developed based on this review analyses and integrates empirical evidence in order to identify convergence and conflict in IJV. The paper addresses a problem of relevance to both international academics and practitioners in addressing managerial implications. It is hoped that the study will provide a meaningful implication to the process of selection of IJV partners