Complexity offering opportunity : Mutual learning between Zhejiang Geely Holding Group and Volvo Cars in the post-acquisition process
(2023) In Global Strategy Journal 13(3). p.700-731- Abstract
While much of the literature on complex global environments builds on studies of multinationals from mature markets, little is known about how firms from emerging markets understand and cope with complexity. This paper builds on a longitudinal case study of Zhejiang Geely Holding Group (ZGH) in the post-acquisition process of Volvo Car Group (VCG) and its efforts to learn how to learn in order to catch up with the internationalization process as means for developing capabilities and compete in the global automotive industry. Building on the Uppsala model, we contribute with insights how an emerging market multinational understands complexity and organize the post-acquisition process to explicitly emphasize the importance of mutual... (More)
While much of the literature on complex global environments builds on studies of multinationals from mature markets, little is known about how firms from emerging markets understand and cope with complexity. This paper builds on a longitudinal case study of Zhejiang Geely Holding Group (ZGH) in the post-acquisition process of Volvo Car Group (VCG) and its efforts to learn how to learn in order to catch up with the internationalization process as means for developing capabilities and compete in the global automotive industry. Building on the Uppsala model, we contribute with insights how an emerging market multinational understands complexity and organize the post-acquisition process to explicitly emphasize the importance of mutual learning to develop and exploit opportunities to improve the business. Managerial Summary: A key finding is that ZGH does not understand complexity only as a risk that should be coped with, managed and controlled—following the western idea of risk management—but also as an opportunity for learning. While the importance of knowledge management and organizational learning is often emphasized as a means to achieve competitive advantage, it is seldom as easily managed in practice. Building on insights from ZGH we illustrate that to enable knowledge development and mutual learning, top-management from the acquiring firm needs to emphasize learning and trust the acquired firm rather than controlling it. It is equally important that the acquired firm trust the intentions of the new owner and reflect on the interest in learning—not least to improve and remain valuable.
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- author
- Jonsson, Anna LU and Vahlne, Jan Erik
- organization
- publishing date
- 2023
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- complexity, emerging market, multinational, post-acquisition, Uppsala model
- in
- Global Strategy Journal
- volume
- 13
- issue
- 3
- pages
- 700 - 731
- publisher
- John Wiley & Sons Inc.
- external identifiers
-
- scopus:85118709281
- ISSN
- 2042-5791
- DOI
- 10.1002/gsj.1424
- language
- English
- LU publication?
- yes
- additional info
- Funding Information: The authors express their appreciation to the editors of this Special Issue, and in particular Julian Birkinshaw, as well as the three reviewers for excellent feedback on earlier drafts that significantly improved the paper. In addition, Anna Jonsson would like to express her appreciation to Riksbankens Jubileumsfond and Handelsbanken's forskningsstiftelser for funding this longitudinal study. She also acknowledges the interest by ZGH, as well as the time and commitment by those co‐workers who participated in the study, and not least those working with the Learning Culture Project. 1
- id
- 31f86229-b6e8-412e-9d63-4420381f8f65
- date added to LUP
- 2021-11-24 14:44:22
- date last changed
- 2023-10-26 14:59:36
@article{31f86229-b6e8-412e-9d63-4420381f8f65,
abstract = {{<p>While much of the literature on complex global environments builds on studies of multinationals from mature markets, little is known about how firms from emerging markets understand and cope with complexity. This paper builds on a longitudinal case study of Zhejiang Geely Holding Group (ZGH) in the post-acquisition process of Volvo Car Group (VCG) and its efforts to learn how to learn in order to catch up with the internationalization process as means for developing capabilities and compete in the global automotive industry. Building on the Uppsala model, we contribute with insights how an emerging market multinational understands complexity and organize the post-acquisition process to explicitly emphasize the importance of mutual learning to develop and exploit opportunities to improve the business. Managerial Summary: A key finding is that ZGH does not understand complexity only as a risk that should be coped with, managed and controlled—following the western idea of risk management—but also as an opportunity for learning. While the importance of knowledge management and organizational learning is often emphasized as a means to achieve competitive advantage, it is seldom as easily managed in practice. Building on insights from ZGH we illustrate that to enable knowledge development and mutual learning, top-management from the acquiring firm needs to emphasize learning and trust the acquired firm rather than controlling it. It is equally important that the acquired firm trust the intentions of the new owner and reflect on the interest in learning—not least to improve and remain valuable.</p>}},
author = {{Jonsson, Anna and Vahlne, Jan Erik}},
issn = {{2042-5791}},
keywords = {{complexity; emerging market; multinational; post-acquisition; Uppsala model}},
language = {{eng}},
number = {{3}},
pages = {{700--731}},
publisher = {{John Wiley & Sons Inc.}},
series = {{Global Strategy Journal}},
title = {{Complexity offering opportunity : Mutual learning between Zhejiang Geely Holding Group and Volvo Cars in the post-acquisition process}},
url = {{http://dx.doi.org/10.1002/gsj.1424}},
doi = {{10.1002/gsj.1424}},
volume = {{13}},
year = {{2023}},
}