Successful knowledge transfer in IJVs: the role of trust, partner compatibility and expected benefits

Abstract

The purpose of this research is to investigate the influence of trust on knowledge transfer and expected benefits from knowledge transfer, and the influence of partner compatibility on knowledge transfer, trust and expected benefits from knowledge transfer. Based on elements from the Resource Based View and Social Exchange Theory, Greek IJVs operating in South East Europe are empirically examined. This research contributes to the literature in four ways: First, by showing a positive impact of the level of trust the foreign partner has towards the local IJV partner on (a) successful knowledge transfer to the IJV and (b) expected benefits from knowledge transfer to the IJV. Second, by revealing a positive impact of the degree of partner compatibility on (a) successful knowledge transfer to the IJV and (b) the level of trust the foreign partner has towards the local IJV partner. Third, by providing empirical evidence regarding the above impacts in new national environments. Finally, it contributes by enhancing the understanding of knowledge transfer from the foreign partner to IJVs in emerging markets.