LEARNING CAPABILITY AND FIRM PERFORMANCE IN A FOREIGN MARKET
Keywords:
learning capability, replication, exploitation, exploration, disposal, dynamic capabilities, adaptive capability
Abstract
Learning capability is imperative for a firm to survive and sustain its competitive advantage. Through a quantitative research based on the collection of data from more than 150 multinational companies (MNCs) from Viet Nam and Taiwan, this study shows that a firm’s learning capability (i.e., replication, exploitation, exploration, and disposal or unlearning) positively influences its performance in a local market only when learning capability enables the firm to create products or service that matches market demand. Furthermore, the empirical results from this study also show that some external factors (i.e., market competition and technology change) impact the effect of learning capability on a firm’s ability to adapt to its marketplace.