Organisational culture, national culture and performance in International Joint Ventures based in Israel

Abstract

International Joint Ventures (IJV) capitalise on localised skills, knowledge and capabilities. Moreover, the internationalisation of markets offers scope to innovate, develop and market new products benefiting from international collaborations. Nonetheless, some IJV fail and many do not achieve satisfactory performance. One reason proposed is cultural differences, most often the differences in partners' national cultures or differences between corporate. We examine 66 Israeli IJV to establish the impact of national and organisational cultures. We found that neither organisational nor national culture had much impact on performance or the perception of performance. However, trust seems to play an important mediating role.