Department of Management

Title

Cross-Border Learning, Technological Turbulence and Firm Performance

Document Type

Article

Publication Date

Winter 2-2015

Abstract

Using knowledge-based view (KBV) and contingency arguments, we develop and test a model that investigates the relationship between the effectiveness and efficiency of cross-border knowledge gained from international business affiliates (IBAs) and the focal (recipient) firm’s performance. We argue that both of these dimensions of learning not only have a direct and positive effect on the performance of the focal firm but also a synergistic one. Also, we suggest that the direct and positive effect of both the effectiveness and the efficiency in learning from the IBA on focal firm performance is moderated by the technological turbulence of the context in which the focal firm operates. Results indicate that the effectiveness of learning, although not the efficiency in learning, positively impacts the focal firm’s performance. However, cross-border learning efficiency and effectiveness jointly improve the focal firm’s performance. Results show that the level of technological turbulence attenuates the positive effect of the effectiveness of learning on the focal firm’s performance. In fact, under high technological turbulence conditions, effective learning becomes detrimental to the focal firm’s performance.

Publication Title

Cross-Border Learning, Technological Turbulence and Firm Performance

Volume

55

Issue

1

First Page

23

Last Page

51