Harmony and cooperation: their effects on IJV performance in China

Abstract

PurposeThis paper seeks to develop a business model depicting the relationship between harmony, cooperation, and international joint ventures (IJV) performance.Design/methodology/approachThe paper takes the form of a quantitative empirical study with the aim of making a contribution to the knowledge of the effects of harmony and cooperation on IJV performance. An interviewer‐administered questionnaire survey method was used for data collection.FindingsThe business model supports the proposed existence that harmony has both direct and indirect effects on IJV performance. While interorganizational harmony directly affects the performance of the company, it promotes cooperation and in turn enhances performance.Research limitations/implicationsOwing to the exploratory nature of this study, the findings are indicative rather than conclusive. Future studies should be conducted to examine the validity and generalizability of this model in other cultural contexts.Practical implicationsThis study provides empirical support for the importance of harmony and cooperation in conducting business in China, and it has significant implications for international marketers. When formulating new venture strategies in the greater China market, the model developed in this study can help to gauge the degrees of harmony and cooperation held by IJV partners.Originality/valueThis study demonstrates and validates the importance of harmony and cooperation in business ventures in general and in the Chinese business environment in particular. This study also signals that there are important implications for future research in emerging or transitional economies.