Knowledge-Transfer Enablers for Successful Construction Joint Ventures

Abstract

International joint ventures (IJVs) are formed to address skills and knowledge deficiencies in executing complex construction projects. Despite many configurations of IJVs, there is still a heavy reliance on overseas expertise due to a limited understanding of the significant factors affecting the acquisition of vital managerial knowledge from the IJV’s foreign partner. Using factor and regression analyses, this paper investigates the critical variables for ensuring that there is a transfer of the required expertise in IJVs. An evaluation of 41 companies involved in IJVs produced 6 factors affecting the acquisition of knowledge; these are conflict and trust, intent to learn, interaction climate, active involvement, performance, and articulated goals. The regression analysis showed articulated goals, intent to learn, and interaction climate having a significant positive effect on acquired knowledge. Clear written guidelines for the IJV organization’s goals and plans are the most influential factor and the first step in signaling a genuine learning intention, as well as in creating the right atmosphere for the transfer of knowledge. The findings of this study are expected to guide government agencies, policy makers, and construction practitioners when reflecting on their strategic plan before entering into IJVs. This research provides knowledge-transfer enablers for the successful joining of resources for two or more firms into a separate jointly owned entity. Also, an understanding of knowledge acquisition builds local capacity and minimizes external dependencies.