Non‐market factors and partnership management in transitional economies

Abstract

Purpose – The purpose of this paper is to explore the moderating effects of non‐market factors on partnership management in transitional economies. Design/methodology/approach – Based on a literature review, it is proposed that the performance implications of control and trust in international partnerships are subject to four main non‐market factors, which include the ownership system, government regulations, cultural differences and the level of regional economic development. Findings – The arguments presented suggest that the effectiveness of a multinational enterprise's (MNE) control is greater in uncertain situations but relatively weaker in highly regulated environments. The impact of trust is weaker when MNEs are faced with greater differences in institutions and national cultures. Research limitations/implications – This paper identifies key contingency factors and provides directions for future empirical research on partnership management. Practical implications – To successfully manage internatio...