From Exploitation to Exploration: the Evolution of Strategy and Organizational Learning in a Chinese-japanese Joint Venture

This paper looks at the strategy evolution and learning orientations of international joint ventures through an in-depth study of a Chinese-Japanese joint venture. We examine the joint venture’s strategy evolution, culture embedment and technology evolution and link these with its learning orientations. We highlight the tension between exploratory learning and exploitative learning in the joint venture during the strategy and technology evolution process and conclude that given the increasingly dynamic environment and market competition, joint ventures in China should engage more in exploratory learning in order to build their innovative capability for sustainable growth.