Trans-specialization understanding in international technology alliances: the influence of cultural distance

Lew, Yong Kyu; Sinkovics, Rudolf R.; Yamin, Mo; Khan, Zaheer

Abstract

In the information age, the firm’s performance hinges on combining partners’ specialist knowledge to achieve value co-creation. Combining knowledge from different specialties could be a costly process in the international technology alliances (ITAs) context. We argue that the combination of different specializations requires the development of ‘trans-specialization understanding’ (TSU) instead of the internalization of partners’ specialist knowledge. This paper examines the extent to which inter-firm governance in ITAs shapes TSU, and whether the development of TSU is endangered by cultural distance. We hypothesize that relational governance, product modularity, and cultural distance influence TSU development, which in turn influences firm performance. We collected data from 110 non-equity ITAs between software and hardware firms participating in the mobile device sector. We analyzed the data using partial least squares path modeling. Our findings suggest that TSU largely depends on product modularity and relational governance in alliances. However, while cultural distance negatively moderates the path from relational governance to TSU, it has no effect on the relationship between product modularity and TSU. Based on this, we conclude that product modularity can substitute for relational governance when strong relational norms are not well-developed in international alliances. Thus, cultural distance does not invariably amount to a liability in ITAs.

Citation

Lew, Y. K., Sinkovics, R. R., Yamin, M., & Khan, Z. (2016). Trans-specialization understanding in international technology alliances: the influence of cultural distance. Journal of International Business Studies, 47(5), 577-594. https://doi.org/10.1057/jibs.2016.10

• Journal Article Type: Article
• Online Publication Date: Mar 10, 2016
• Publication Date: Jun 1, 2016
• Deposit Date: Sep 25, 2024
• Journal: Journal of International Business Studies
• Print ISSN: 0047-2506
• Electronic ISSN: 1478-6990
• Publisher: Palgrave Macmillan
• Peer Reviewed: Peer Reviewed
• Volume: 47
• Issue: 5
• Pages: 577-594
• DOI: https://doi.org/10.1057/jibs.2016.10
• Keywords: international technology alliance, trans-specialization understanding, cultural distance, product modularity, relational governance, PLS-SEM
• Public URL: https://durham-repository.worktribe.com/output/2773116