Knowledge management and instability in international joint ventures (ijvs)evidence from basque ijvs in india

Resumen

This doctoral thesis examines the relationship between knowledge management (KM) and International Joint Ventures’ (IJVs) instability. Based on Grounded Theory, this qualitative, interpretative and inductive research embraces a two-phased empirical inquiry. First, an exploratory research study of 35 IJVs created by Basque firms has been conducted, in order to describe the characteristics of IJVs. Second, on the basis of the results of the exploratory study, 3 in-depth case studies of Basque-Indian IJVs, from the initial 35, were conducted in order to identify the practices of KM developed in the frame of IJVs; describe the type of instability faced by the IJVs; and analyze the relationship between KM and IJV instability. Three main conclusions are extracted from this research: 1) KM from a firm-centered perspective shows the structured process that firms develop in order to manage knowledge in the frame of IJVs, and it involves the definition of policies of KM, the determination of the role of parents according to their knowledge complementarity, and the deployment of different KM mechanisms. 2) IJV instability should be defined from a hybrid perspective. In particular, this definition should encompass the tendency of an IJV towards liquidation, internalization or execution of major changes in the ownership structure as a consequence of the intent to favor individual strategies over joint strategies in the frame of the IJV by, at least, one of the parents. This means that not only the final destination of the IJV should be examined to define IJV instability, but also the symptoms of instability and stability faced by the IJV at both shareholder and operational level. 3) KM, from a firm-centered perspective, influences instability in Basque-Indian IJVs. First, the role of parents influences IJV instability, since knowledge complementarity enhances IJV stability; the contribution to the IJV of a specific type of knowledge which is not critical for both parent firms enhances IJV instability; and unfulfilled expectations regarding the contribution of knowledge by the counterpart is related to IJV instability. Second, the mechanisms of KM influence IJV instability, since an expatriate CEO is related to IJV instability, whereas a knowledge transferor position covered by an expatriate and a coordinator position covered by a PCN visitor are related to IJV stability. Third, the policies of KM moderate the relationship between the role of parents and IJV instability, since formalization of KM implies negotiating and acknowledging practices of KM by parent firms.