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Abstract ▼ AI-Helper

This paper aims to investigate the impact of partners’ relational embeddedness on IJV’s marketing knowledge acquisition. Based on previous studies, partners’ trust, effective channels for communication between partners and control exercised by MNEs are included as the components comprising relatio...

This paper aims to investigate the impact of partners’ relational embeddedness on IJV’s marketing knowledge acquisition. Based on previous studies, partners’ trust, effective channels for communication between partners and control exercised by MNEs are included as the components comprising relational embeddedness. This research posits that the types of marketing knowledge that parents strategically seek to require may be different: MNEs want to absorb local market information, whereas local firms tend to learn foreign marketing know-how. This paper attempts to identify key factors affecting acquisition of marketing knowledge (i.e., marketing know-how and local market information) from parent firms in subsidiaries and compare them in the IJV context, respectively. Using survey data of IJVs in Korea which is one o f the largest emerging economies, the researcher undertakes multiple regression analysis. The result shows that efficient communication between partners fosters the acquisition of marketing knowledge while trust is not statistically significant. It also reveals that IJVs’ learning may be more facilitated in the case where MNEs collaboratively support subsidiaries than dominant control by foreign parents. Consequently, this research implicates that cooperation and efficient communication between partners are important to overcome the tacitness of marketing knowledge and for learning to occur.

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