Institutional dimensions and conflict resolution strategy in international joint ventures: An empirical examination

Abstract

This study examines the impact of the host‐country institutional structures on the choice of conflict resolution strategy in the international joint venture (IJV). Using the survey method and relying on multiple regression, we demonstrate that there is a statistically significant relationship between institutional pillars and the choice of conflict resolution strategy in the international joint venture in the context of Ghana. In particular, we demonstrate that legalistic and forcing conflict resolution strategies are influenced by the regulative institutional pillar, while compromising and problem‐solving conflict resolution strategies are impacted by normative and cognitive institutional pillars. The multigrouping analysis results show that the views and the choice of foreign partners on conflict resolution strategy differ from that of the local partners to the IJV. This study fills the gap by empirically testing the conflict resolution strategies of firms in relation to the role of regulative, normative, and cognitive institutional pillars of the host country.