Good match matters: knowledge co-creation in international joint ventures

Partners not only transfer knowledge to each other but also can jointly create new ideas and practices. This research examines knowledge co-creation (KCC) in international joint ventures (IJVs). Drawing on matching theory, we propose that partners' compatibility is positively related to KCC, whereas complementarity has a curvilinear relationship with KCC. Furthermore, according to institutional theory, the effect of KCC on performance is contingent upon the institutional environment. Specifically, information verifiability—an under-researched but important institutional factor—strengthens the positive influence of KCC on performance. We collected survey data from 372 senior and middle managers in China-based IJVs, and the results largely support our hypotheses. This research sheds new light on B2B collaboration and we conclude with its theoretical and managerial implications.