Determinants and Competitiveness Outcomes of International Joint Ventures’ Knowledge Acquisition: Facts from Algeria

Abstract

International joint ventures (IJVs) are seen as vital tools for gaining access to, learning from, and absorbing sophisticated economic businesses' embedded skills, technology and knowledge in order to gain a sustained competitive advantage and improved performance. The purpose of this article is to analyze transfer mechanisms (replication and adaptation) and formal governance mechanisms (contract and control) as predictors of IJV knowledge acquisition in Algeria's transition economic market, which would result in increased IJV competitiveness. With a sample of 122 oil and gas IJVs in Algeria and using PLS SEM 3.0 to analyze the data, the findings indicate that although transfer mechanisms facilitate IJV knowledge acquisition, formal governance procedures have no significant effect on IJV knowledge acquisition. Additionally, IJV's knowledge acquisition significantly enhances its competitiveness