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

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

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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 article 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.

Item Type:Articles
Keywords:International technology alliance, trans-specialization understanding, cultural distance, product modularity, relational governance, PLS-SEM.
Glasgow Author(s) Enlighten ID:Sinkovics, Professor Rudolf
Authors: Lew, Y. K., Sinkovics, R. R., Yamin, M., and Khan, Z.
College/School:College of Social Sciences > Adam Smith Business School > Management
Journal Name:Journal of International Business Studies
Publisher:Palgrave Macmillan
ISSN (Online):1478-6990
Published Online:10 March 2016
Copyright Holders:Copyright © 2016 Academy of International Business
First Published:First published in Journal of International Business Studies 47(5): 577-594
Publisher Policy:Reproduced under a Creative Commons License

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