Knowledge Acquiring/Sharing in International Joint Ventures (IJVs)

Key words/concept:

IJV Business Know-how Tacit Knowledge Explicit Knowledge

Knowledge an organizations strategic asset KM Cycle Organizational culture Cultural distance Relationship/trust/misunderstanding/misinterpretation Knowledge protectiveness CoP Knowledge Sharing

An International Joint Venture (IJV) is usually set up for the purpose of exploring new market and/or seek the benefit of low labour/production costs from the advanced economies in developing countries, while they are considered from the local firms point of view, a source to receive investment and technology from their foreign partners.

An IJV set up in Vietnam by a local firm and a Canadian company is just an example for serving the above-mentioned aspiration the local firm seeks leading knowledge and technology it needs and its foreign partner pursues the market opportunity for its products and the benefit of reducing production cost. The described objectives of the IJV include:

to equip the local firm with the advanced technology and machinery for producing the products which will be sold to both domestic and overseas markets .

to provide training to local staff for gaining specific knowledge and technic know-how in operational management and machine operations areas,

to share knowledge with local partner in business management and international marketing management areas.

to share local knowledge with foreign partner in the areas of Vietnamese domestic market, Vietnamese business management and local business culture.

utilizing the knowledge/expertise/know-how of both sides to maximize the benefits from market expansion and increasing profit and productivity.

Question:

1. How do you manage Explicit Knowledge sharing and particularly Tacit Knowledge sharing in this case?

2. Discuss the cultural factors that could play a role in restricting and/or facilitating knowledge acquisition and knowledge sharing between the locals and their foreign partners.