The Relationship Between Control and Partner Learning in Learning-Related Joint Ventures

Abstract

The model developed draws on resource-based, information-processing, and organizational learning theories to show how JV control processes affect the dynamics of interpartner learning. According to the model, firms forming learning-related JVs match with partners in line with their differences in capability and other requirements; the result is referred to as the asymmetry-need configuration. A satisfactory post-negotiation match implies a balance in perceived bargaining power, enabling both partners to institute controls appropriate for the specific types of learning undertaken. The model stresses that appropriate controls are essential for learning to take place, yet dissimilar learning needs or learning capabilities of the two partners may nonetheless result in unequal learning rates. Such unequal learning sets into motion a continual reconfiguration of the original relationship between the two partners, including modification of the initial asymmetry-need configuration and perception of bargaining power. The model emphasizes that JVs with learning objectives are inherently and inevitably dynamic because of these internal processes. However, control mechanisms themselves are an important means for diagnosing these processes and realigning the relationship. The formulation of such a process model helps to integrate many aspects of the JV relationship, including initial configuration, partner bargaining power, JV controls, and interpartner learning. In addition, the model captures the evolution of the partner relationship over the life of the JV. The focus on JV control processes in this research complements the insights gained from previous work that has looked at JV learning mainly in relation to the characteristics of the partners.