Knowledge search in international cooperative ventures

By taking a learning approach to international cooperative ventures, this s tudy introduces absorptive capacity as a principle governing the relationsh ip between knowledge possession and knowledge search among prospective part ners. Two alternative hypotheses are juxtaposed: The first is that firms wi ll seek additional knowledge in the same area in which they already have a knowledge base; the second is that firms will seek knowledge in a complemen tary area. Data from 90 partner-seeking firms in China show that the posses sion of complementary knowledge is a prerequisite for knowledge search. Fur thermore, in line with the learning perspective, the equity joint venture i s the vehicle of choice for firms seeking transfer of tacit, embedded knowl edge.