Mediation Role of Competitiveness in the Relationship between Knowledge Acquisition and Performance of International Joint Ventures

Abstract

Knowledge acquisition from foreign partners has become an increasingly important strategy for international joint ventures (IJVs) to improve their levels of performance. Building on the knowledge-based view (KBV) theory, and using data from 122 oil & gas IJVs in Algeria, we examine the underlying mediating role of the competitiveness of IJVs in the relationship between knowledge acquisition and performance of IJVs. Our results reveal that knowledge acquisition has a significantly positive impact on the performance of IJVs. We also find that the competitiveness of IJVs mediates the relationship between knowledge acquisition and performance of IJVs. Our findings contribute to knowledge on the performance of IJVs by evincing how knowledge acquisition can be used to enhance competitiveness of IJVs and subsequently, improve their performance. Our study contributes both theoretically and empirically to the body of knowledge