The Learning Process of a Dragon MNE. How does DingLi learn and utilize acquired knowledge?

Abstract

II Abstract The increased trend of Dragon MNEs investing in Western countries with the main motive of getting access to knowledge have been acknowledged during the last decade. However, a limited amount of research have concerned how acquired knowledge is utilized and how the learning process of a Dragon MNE is established post an acquisition, which this thesis will address. It is important to address this limited research field, as it is the utilization of knowledge and not simply the availability of knowledge, which constitutes learning. Knowledge is partly utilized by means of a Dragon MNEs learning process, including the acquisition, distribution and integration of knowledge. The learning process of a Dragon MNE is studied by the case of DingLi, a Chinese-owned company, which acquired the Swedish company AmanziTel in 2011, with the motive of getting access to knowledge. Although the acquisition of AmanziTel has been established and was an exploratory move in terms of seeking knowledge, the acquisition of knowledge within the learning process continues post the acquisition, as the knowledge acquired from AmanziTel is continuously exploited while at the same time knowledge from other directions are explored. Hence, how knowledge is acquired post the acquisition is studied in this thesis in order to establish how knowledge is utilized within a Dragon MNE. The main findings from this case study indicate several factors a Dragon MNE need to possess, in turn influencing the learning process and the utilization of knowledge, inter alia, established means and control mechanisms; ambidexterity; collaboration, connectedness and trust; awareness of potential obstacles; absorptive capacity; and, the ability to go from awareness to action. Essentially, the awareness of the effort needed by Dragon MNEs have to be realized in order to fully utilize acquired knowledge since knowledge will not automatically be utilized within the organization after knowledge has been acquired. In the case of DingLi, no fully developed learning process was found and knowledge was thus not fully utilized. The top management of DingLi was aware of the needed implementations and developments, however, in this case it all came down to the lacking ability of taking the step from awareness to action.