Abstract
Do local partner’s network attributes affect the survival and longevity of international joint ventures (IJV) resulting from collaborative foreign market entry? And how does the effect of network attributes vary in different institutional environments? While the classic economic explanation for IJV’s formation and subsequent performance draws from the resource-based view, we add the relational dimension to explain that IJV survival and longevity might be affected by local partners’ relation-specific assets in the local network. Our setting for research is American MNEs in high-tech industries entering into an emerging economy (China) and a developed economy (Canada). We test the effect of RBV explanation (resource complementarity) and local partner network attributes calculated by UCINET (centrality, structural hole position, and network status) on the longevity of IJV. We show that the relationship is moderated by institutional difference between the home and host country.
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