Should you trust me? A quantitative study of how trust influence learning in international joint ventures

Abstract

The scope of this master thesis is to understand how inter-partner trust influence technological learning in international joint ventures. Due to an increase in digitalization and intensified global competition, we have broadened our understanding of international joint ventures and the potential within alliance relationships. We have studied the learning of one partner from the other through the international joint venture. More specifically, we have examined the critical success factor, trust, and how different proxies for trust influence technological learning in the form of patent citations for firms in international joint ventures. Eight proxies for trust has been designed and analyzed in an Ordinary Least Squares regression model. Most of the data used in our thesis are collected from the Securities Data Corporation, with additional information from the U.S. Patent and Trademark Office, LexisNexis Corporate Affiliations, OECD, Factiva, and other webpages. The study shows that four out of eight proxies for trust had a significant relation to technological learning in international joint ventures. The results demonstrated that country familiarity, experience, and a prior relationship with the same international joint venture partner have a positive influence on firms´ technological learning. Further, it appears that a high level of trust at a country level seems to decrease technological learning. In total, it does seem that inter-partner trust both positively and negatively influences technological learning in international joint ventures.