Perceptions of cultural differences and the management of culture in international joint ventures

Abstract

This paper investigates the relative importance of both national culture and corporate culture differences in a sample of international joint ventures with parent firms from Europe, North America and Australia. The findings of the study are, first, corporate culture differences are a more important factor contributing to different views on the management of JVs compared with national culture differences. Second, the perception of culture difference is reduced in firms adopting culture management policies. Third, the greater the culture differences perceived by the parent firms then the greater the impact of cultural differences on JV performance. Fourth, the greater the cultural differences contributing to different views on JV management then the less satisfied the parent firms are with JV performance. Lastly, corporate culture differences contributing to differing views on JV management were more significantly correlated with autonomy granted than were national culture differences.