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URN etd-0727104-170142 Statistics This thesis had been viewed 2797 times. Download 2311 times. Author Ya-wen Hsueh Author's Email Address email@example.com Department Management Business Administration Year 2003 Semester 2 Degree Master Type of Document Master's Thesis Language English Page Count 193 Title ORGANIZATIONAL LEARNING, KNOWLEDGE CREATION, AND INNOVATION IN INTERNATIONAL JOINT VENTURES: A TOP MANAGEMENT TEAM PERSPECTIVE Keyword TOP MANAGEMENT TEAM PERSPECTIVE ORGANIZATIONAL LEARNING KNOWLEDGE CREATION INNOVATION ba ba INNOVATION KNOWLEDGE CREATION ORGANIZATIONAL LEARNING TOP MANAGEMENT TEAM PERSPECTIVE Abstract ABSTRACT
An international joint venture (IJV) is a widely adopted mode of entry into foreign markets. With local partners, the firm could reduce liabilities of foreignness and have keen insights about into the local environment, thus increasing the likelihood of success. Compared with international acquisition and merger, an international joint venture performs better. In most joint ventures, some key management team members are operating in an unfamiliar territory. Many expatriates working in a host country may have little understanding of the local language and culture. In the midst of this complex system resides the joint venture leadership team, responsible for the venture’s daily operations and long-term success. Apart from making more alert decisions in globalization arena, top management team (TMT) has to foster the building of learning context so as to nurture their knowledge, and then to out-perform competitors.
Managing an international joint venture, composed of people with different nationalities, poses even tougher and more unpredictable challenges. Because of diverse cultural backgrounds, members of TMT in an IJV might encounter ineffective communication, resulting in misunderstanding and even hostility and eventually leading to poor functioning of the entire organization. Therefore, the establishment and management of TMT is a top priority in successful management of an IJV and her going-concern. Taken together, the research questions of this study are numerated as follows.
1. How would top management team influence the performance of an international joint venture?
2. How would top management team influence the knowledge creation and innovation within the international joint venture?
3. How would a leader’s characteristics and management style influence the management team and corporate performance?
4. How would national cultural differences influence the knowledge creation and innovation within the international venture? How could the top management team cultivate an effective knowledge sharing and creating context (or Ba) across cultures, thus contributing to innovation generation?
From this research, it is found that the management style of top management team, rather characteristics of TMT members, significantly influences the operations of international joint ventures. In particular, a management team, which emphasizes efficiency and quick response positively, exerts on the performance of entire companies. Thus, this study suggests that the top management team has to stress the operating competencies among team members so as to increase capabilities in information collection and responses to changes from external environments. It is evidenced that the TMT’s management style also affects organizational learning. When international joint ventures tend to adopt the organizational learning model that leads to actualization of vision, their performance is expected to be higher than those that fail to do so. Therefore, the research proposes that members of TMT should openly articulate the vision blueprint to their associates so as to increase their willingness and capability in learning.
Because of limited cases, this study faces the threat of external validity. The propositions drawn from literature and comparative studies are only applied to international joint ventures initiated in Taiwan, not to any other ventures in other countries. Obviously, the statements showing relations between variables are tentative and await further testing and verification.
This study has made two contributions to the literature of management of international joint ventures; namely: first, it adds a knowledge view of IJVs; second, it investigates knowledge creation and innovation within IJVs from the top management perspective. With respect to the contribution to management practices, the study proposes a decision-making framework of knowledge creation and innovation for managers of IJVs. Further, this research suggests that the operations of IJVs should consider cultural differences in building a knowledge-sharing platform, which facilitates knowledge exchange and learning, to enhance competitive advantages of the unified transnationals.
Although the research topic reflects the emerging research stream in managing knowledge across cultures and fills the research gaps, this study is not without limitations as stated earlier. The study has striven to conduct everything possible (from literature review to research design) to ensure an acceptable level of validity and reliability. Apparently, the proposed research framework and accompanied propositions can be further verified. Moreover, together with more IJVs from various industries, more composed by different country combinations, and more launches in other countries, the future study can derive a more generalized research framework from these comparative studies.
Advisor Committee Wen-kuei Liang - advisor
Hsin-hsiung Lin - co-chair
Wellington K. Kuan - co-chair
Files Date of Defense 2004-06-30 Date of Submission 2004-07-27