International Joint Ventures Performance Research Articles

Examining executives’ role conflicts in German-international joint ventures: A qualitativeanalysis

The purpose of this study is to examine what conflicting roles executives of international joint ventures (IJV) perceive and to explicate what consequences result from such discords, particularly how and under what conditions role conflicts relate to IJV performance. A qualitative approach was followed by analyzing 23 semi-structured interviews based on Saldaña's two coding cycles. Results present comprehensive catalogs of IJV executives' roles as well as role conflicts, along with a conceptual model that shows (positive, but especially negative) consequences of role conflicts. This model sheds light on the black box of the relationship between role conflicts and IJV performance, thus opening a promising basis for further behavioral research embedded in alliance management. In addition, the established catalogs of identified role(s) (conflicts) contribute to the research field of global leadership.

Toward improved international joint ventures performance in India: the mediating role of ambidexterity and the moderating role of environmental dynamism

PurposePerformance has been a significant concern of the international joint ventures (IJVs) literature. This paper aims to empirically capture the impact of firm-level factors on IJVs performance in India. The authors investigate the mediating effects of ambidexterity between the factors and IJVs performance. Additionally, environmental dynamism as a moderator between ambidexterity and IJVs performance is examined.Design/methodology/approachThis study performs structural equation modeling using the data of 501 IJVs between India and G7 nations from 2010 to 2020.FindingsThe result reveals the ambidexterity's mediation effects in the relationships between factors (technology transfer and flexibility) and IJVs performance. Furthermore, the findings indicate that a highly dynamic environment moderates the relationship between ambidexterity and the performance of IJVs.Research limitations/implicationsThis study has investigated the nexus between technology transfer, flexibility, ambidexterity and IJVs performance in the context of Indian IJVs. It has highlighted the importance of firm-level factors in cross-cultural joint ventures in achieving performance.Originality/valueThe study establishes the impact of firm-level antecedents on IJVs performance in India. The study highlights the importance of ambidexterity and environmental dynamism in order to achieve IJVs performance.

Cultural bridging and the performance of international joint ventures

The existing predictions and findings regarding the effect of cultural distance on the performance of international joint ventures (IJVs) remain inconsistent. We suggest that this inconsistency is due to the lack of conceptually differentiating the cultural distance between the firm’s home country and its partner(s)’country (home-partner country cultural distance) from the cultural distance between the firm’s home country and the location of the IJV (home-host cultural distance). We contribute to our understanding of IJVs by explicitly differentiating these two types of cultural distance, and by introducing the concept of cultural bridging. Cultural bridging relates to the proportion of home-host cultural distance that is compensated by having a joint venture partner, whose home country culture is more similar to the host country culture than the MNE’s home country culture is to the host country culture. We theorize how cultural bridging affects IJV performance and how it interacts with home-partner country cultural distance and home-host cultural distance to influence IJV performance. We test our hypotheses using a sample of 1708 IJVs. We find that cultural bridging has a positive influence on IJV performance, strengthens the positive performance effect of home-host cultural distance, and reduces the negative performance effect of home-partner country cultural distance. Our findings help make sense of some of the inconsistent findings regarding the role that cultural distance plays for IJV performance.

Coopetition configuration and performance of international joint ventures for high-speed rail projects

PurposeMembers in the international joint ventures (IJVs) for high-speed rail (HSR) projects usually engage in coopetition interactions to create common benefits (CB) and simultaneously safeguard private benefits (PB). Previous studies of coopetition and performance using variance-based methods usually ignore the combinational influence of diverse coopetition constructs on performance, which can be effectively compensated by adopting a configuration perspective. Therefore, this research aims to ascertain various combinations of three coopetition constructs (coopetition relationship, coopetition capability and coopetition strategy) that lead to high IJVs’ performance through a configuration approach.Design/methodology/approachFirst, the research framework of coopetition configuration was established, and the key constructs were operationalized, which were validated by expert interviews. Then the information on 12 HSR IJVs was collected and quantified through nine rounds of interviews and a questionnaire survey. Later, the fuzzy-set qualitative comparative analysis (fsQCA) was applied to explore what coopetition configurations benefit the CB or PB achievement.FindingsConfiguration results indicate that six coopetition configurations lead to CB outcome and seven configurations lead to PB outcome. Based on the results, coopetition contexts are divided into four categories: firm-based coopetition, project-based coopetition, firm-project-based coopetition and none-based coopetition. Then, a selection scheme for coopetition strategies in various contexts has been developed. The results also show that the core conditions mostly appear in the coopetition relationships and coopetition strategies dimensions, and the optimal coopetition strategies vary in different contexts.Originality/valueThis study enhances the theoretical understanding of coopetition in HSR IJVs and assists relative HSR industrialists, as well as the mega infrastructure project managers, in IJVs’ implementation. The configuration perspective of this paper also contributes to a systemic and holistic view of coopetition in HSR IJVs.

Understanding the Paradox in the Results of National Cultural Distance Impact on International Joint Venture Performance: A Narrative Review of Prior Literature

The literature on international joint ventures (IJVs) continues to grow owing to their crucial importance in global market competition. National cultural distance (NCD) between partner firms is conventionally considered one of the main contributors to unsatisfactory IJV performance, leading to its dissolution. Nevertheless, there is no consensus on the extent of the impact of NCD on IJV performance, nor on whether this impact is predominantly positive or negative. Therefore, we conducted a narrative review to shed light on prior research (including the earliest works) to explore and clarify the causes of these apparent inconsistencies in the research’s results. Theoretically, the current research offers guidance for future study on the topic. Researchers should introduce moderator and mediator variables in pursuit of a more nuanced understanding such as mutual trust between partners. Practically, this paper will help IJV managers mitigate the negative effects of NCD and improve overall venture performance by selecting culturally intelligent managers, providing cross-cultural training for IJV staff, and implementing cooperative conflict resolution. Like any study, this paper has some limitations that should be examined by future researchers.

Developing structural modelling of inter-partner factors of international joint ventures performance

PurposeThe study aims to identify, analyse and develop a model for measuring the inter-relationship and interaction among the inter-partner factors. International joint ventures (IJVs) literature has scantly studied the interactions and inter-relationships among the inter-partner factors of IJVs performance. To address this gap, this research creates a hierarchical relationship framework among the inter-partner factors of IJVs performance.Design/methodology/approachThe comprehensive literature review is used to identify the factors and possible relationships between the factors and IJVs performance. M-TISM (modified total interpretive structural modelling) methodology is used to examine the relationship among the factors of IJVs performance.FindingsThis study highlights 12 inter-partner factors that affect IJVs performance. The results suggest that size asymmetry, commitment, goal incongruency, competitive overlap, trust, control, the interdependency of resources, cooperation, economic distance, cultural distance, geographical distance and administrative distance significantly impact IJVs performance. Commitment is found to be a linkage variable as it has high dependence and driving power. Goal incongruency and competitive overlap have high driving power.Research limitations/implicationsThis study gives a proposed list of critical inter-partner factors for policymakers and practitioners to consider when developing rules or recommendations to improve IJVs performance. The focus of policymakers should be on economic and geographical distance, followed by cultural distance, competitive overlap, goal incongruency, size asymmetry and administrative distance to improve inter-relationship among the partners in IJVs. The work contributes to the academician by presenting a modified TISM model that highlights the significance of ambidexterity in driving the performance of IJVs.Originality/valueThis study fills a gap in the literature by analysing the interactions among the inter-partner parameters that influence the performance of IJVs. It offers insights into the variables, such as driver dependence and the relationships between the variables.

Impacts of management control mechanisms on the performance of international construction joint ventures: an empirical study

PurposeWhile previous studies have focused on identifying management control (MC) mechanisms in international construction joint ventures (ICJVs), the impacts of such MC mechanisms on the performance of ICJVs remain largely unknown. This study aims to investigate the impacts of MC mechanisms on the performance of ICJVs hosted in the developing country of Ghana.Design/methodology/approachThrough a comprehensive review of the literature, a theoretical model was developed, and data were collected through a questionnaire survey with 190 project managers composed of Ghanaians/locals and their foreign partners of ICJVs. The data were analyzed using partial least squares structural equation modeling.FindingsResults showed that both personnel and support and training control mechanisms have a positive and significant impact on project and company/partner performance. Surprisingly, insignificant and negative impacts exist between both mechanisms and socioenvironmental and company/partner performance from the local partners' view, respectively; the reverse is rather true from the foreign partners' perspective.Practical implicationsThis study contributes to the ICJV body of knowledge by analyzing the impacts of MC mechanisms on the ICJVs’ performance, enabling ICJVs frontliners (i.e. top managers) and project managers to better enhance their control structures and the ICJVs’ performance.Originality/valueThis is arguably the first study to take the bipartite perspective rather than the unilateral view of studying the impacts of MC mechanisms on the performance of ICJVs.

Partner Fit between Partner Firms and IJV Performance: A Non-linear Relationship

Purpose This study analyzes the effect of partner fit between international joint venture (IJV) partners on IJV performance as a nonlinear relationship. Design/Methodology/Approach A survey was conducted on international joint venture companies belonging to the manufacturing industry in Korea formed between Korean and foreign companies, and multiple regression analysis was conducted. Findings As a result of empirical analysis, it was confirmed that there was an inverted U-shape relationship between partner fit and IJV performance. Research Implications This study suggest that partner fit has a positive effect on IJV performance to a certain level, but excessive partner fit may lead to a decline in IJV performance because over-embeddedness hinders new learning and innovation between partners.

Is Ambidextrous Innovation Strategy Beneficial to International Joint Venture Performance? Evidence from China

While the strategic marketing literature promotes ambidexterity as a critical innovation strategy that can enhance firm performance, its value in the international marketing context remains underexplored. Combining the ambidexterity and international marketing literatures, this study investigates how ambidexterity affects performance of the international joint ventures (IJVs) and how parent control asymmetry and cultural distance moderate the effects. Using polynomial analysis, this study simultaneously considers both the balance and intensity elements of ambidexterity and examines their effects on IJV performance in China. The authors argue that ambidexterity balance has a U-shaped effect on IJV performance, whereas ambidexterity intensity exerts an inverted U-shaped effect; such effects are further moderated by the unique features of IJVs—that is, parent control asymmetry and cultural distance. With a data set that combines survey and archival data on IJVs in China, the authors find strong empirical evidence for the hypotheses. These findings offer important advances to innovation research on IJVs.

Managing the hearts of boundary spanners: CEO organizational identification and international joint venture performance

Integrating boundary spanning and organizational identification theories, we posit that a boundary spanner’s organizational identification (i.e., the sense of oneness with an organization) is an important factor shaping inter-organizational relationships. We examined CEOs of international joint ventures (IJVs) as the boundary spanners in the Asia Pacific region by sampling 185 China-based IJVs. We found that organizational identification of an IJV’s CEO with a parent firm is positively related to cooperation between the venture and that parent, and this relationship is stronger when the level of goal differences between parents is higher. The cooperation between the foreign (but not local) parent and the IJV is in turn positively related to the IJV’s performance. This study extends extant research by revealing the role of a boundary spanner’s organizational identification in inter-organizational collaboration as well as inter-firm goal differences as a boundary condition for this role.

Antecedents of international joint ventures’ past, present and future: a meta-analytical review

PurposeThe last two decades have witnessed a substantial increase in the body of research on the theoretical perspective of the performance of international joint ventures (IJVs). However, the evidence on the antecedents of IJVs performance is inconsistent. The purpose of this paper is to critically review the quantitative studies on the antecedents of the performance of IJVs to identify the research gaps in this area and to prepare a future research agenda using the theory, context, characteristics and methodology (TCCM) framework.Design/methodology/approachMeta-Analysis review is conducted on 97 papers from A*, A and B category journals from the Australian Business Deans Council (ABDC) Journal Quality List.FindingsThe results reveal the homogeneity in antecedents such as administrative distance, BOD (board of directors) involvement, resource interdependency, flexibility, learning, competitive overlap, cultural distance, R&D (research and development) intensity, contract, relatedness, the existence of a local IJVs partner, trust, operational experience, partners capability, size asymmetry, goal congruency, capital adequacy, economic distance and heterogeneity in the antecedents such as equity ownership, commitment, control, cooperation and conflict are heterogeneous.Originality/valueThis review seeks to provide deeper insights, which help us to contribute toward the development of the research field of antecedents of the performance of IJVs. The authors have synthesized 97 independent samples with a total sample size of 52,268.

Resource complementarity, partner differences, and international joint venture performance

In emerging markets, multinational enterprises use international joint ventures (IJVs) to acquire and integrate partners’ complementary resources and improve their competitive positioning. While resource complementarity facilitates mutual learning and synergy creation, various factors can undermine knowledge-sharing and partner relationships, thereby inhibiting the value-realization potential of complementary resources during the post-partnership-formation stage. Drawing on the relational view, this study investigates how IJV partner differences influence the benefits extracted from resource complementarity. Based on a sample of 200 IJVs in China, we find that cultural distance and control asymmetry between partners negatively moderate the positive impact of resource complementarity on IJV performance. Partner market overlap has an inverted U-shaped moderation effect on the impact of resource complementarity. These results offer novel insights into the contingencies affecting the realization of the value of complementary resources in IJVs.

Management control structures and performance implications in international construction joint ventures: critical survey and conceptual framework

PurposeManagement control is needed in international joint ventures (IJVs) for successful management and performance. While IJV management control and performance concept has been widely explored, in the construction sector, the core understanding of the design of the two concepts is still lacking. This has resulted in the neglect of important questions and directions for research and practice improvement. This study aims to conduct a critical survey of prior studies addressing the conceptualization of management control and performance in IJVs and to propose a framework for studying the performance implications of management control in international construction joint ventures (ICJVs).Design/methodology/approachUsing Scopus database and search terms, a systematic desktop search was conducted to retrieve empirically related peer-reviewed papers for this study.FindingsDrawing on the transaction cost, institutional and relational logic, the first inclusive hypothetical model for studying the relationship between different dimensions of management control mechanism and multiple performance criteria in ICJVs is presented. The model proposes a measurement method for both the management control and performance and explains how they can be established in ICJVs.Practical implicationsThe proposed framework provides a methodology to understand the dynamics of management control and performance implications in ICJV. Specifically, uncovering the critical paths will assist ICJV frontliners to approach management control in a more holistic and systematic way to promote achievement of ICJV goals.Originality/valueThe study gives a firm ground to the construction industry, which is accurate and educational for related fields concentrating on several other forms of cooperative relationships.

Managing international joint ventures to improve performance: The role of structural and social mechanisms

Poor performance has been a major concern in research on international joint ventures (IJVs). This study integrates the IJV management mechanisms from transaction cost theory (TCT) and social exchange theory (SET) in order to gain insights into management mechanisms that improve IJV performance. The framework consists of three structural (i.e., symmetric dependence, symmetric equity share and resource complementarity) and three social (i.e., trust, communication and cultural adaptation) IJV management mechanisms, which are considered as potential determinants of IJV performance. Based on the analysis of data collected from 89 IJVs established by Nordic firms in Asia, Europe and the USA, results indicate that TCT-based symmetric dependence and resource complementarity on the one hand and SET-based trust, communication and cultural adaptation on another significantly improve IJV performance. However, impact of symmetric equity share on IJV performance remains negative and non-significant, explaining that IJV partners may consider it rather a safeguard to their own stake and interests in IJVs. In addition, SET-based IJV management mechanisms are found to be more effective than the TCT-based IJV mechanisms in improving IJV performance.

A knowledge tension perspective on management control and performance in international joint ventures

Abstract Knowledge tension results from knowledge sharing, protection, and learning simultaneously in an IJV. This study highlights the moderating role of knowledge tension on the relationship between management control and MNE's satisfaction with IJV's performance. Evidence from 162 IJVs shows that (1) split management control can result in higher IJV satisfaction than other types of management control when MNEs or local partners encounter sharing-protection tension, and (2) split management control and MNE dominant management control can result in higher IJV satisfaction than shared management control when both MNEs and local partners simultaneously encountered sharing-protection tension. We suggest that split management control performs better than all other control structures. However, MNE-dominant control is another choice when MNEs and local partners simultaneously encounter sharing-protection tension.

What Determines Innovative Performance of International Joint Ventures? Assessing the Effects of Foreign Managerial Control

International joint ventures (IJVs) have long been considered a vibrant venue for innovation, one source of sustainable competitive advantage. Nonetheless, there is a paucity of research that seeks to understand what determines their innovative performance. We draw attention to and examine the control structure of IJVs as a determinant of innovation. Using the complementary lenses of local embeddedness, the liability of outsidership, and open innovation, we argue that foreign managerial control reduces IJV innovation and that equity ownership balance between foreign and local parent firms and affiliation of IJVs with local market business groups weaken this negative relationship. Using panel data of 48 IJVs in Korea during the periods between 2000 and 2016, we find empirical support for these arguments. This study contributes to the literature by extending our understanding of how to design IJVs for enhancing innovative output and consequently improving their sustainability.

Impact of culture differences on performance of international construction joint ventures: the moderating role of conflict management

PurposeCultural differences have been frequently cited as a major source of risks for international joint ventures (IJVs). Cultural differences may cause extensive conflicts in technology, norms and emotion among the international joint venture (IJV) partners. The purpose of this study is to explore the interactive effects of national culture differences (NCDs) and conflict management approaches on the performance of international construction joint ventures (ICJV).Design/methodology/approachData were collected using a questionnaire survey method with 143 valid responses. Partial least squares structural equation modeling (PLS-SEM) was used to test the research hypotheses.FindingsIt was found that ICJV performance declined with a high degree of NCDs. The negative effect of NCDs on ICJV performance was mitigated by adopting the cooperative conflict management approach; while it was aggravated by adopting the competitive conflict management approach. The findings may provide an alternative way (i.e. adopting the cooperative conflict management approach rather than avoiding or competitive approaches) to address the cultural conflicts in the multicultural project management teams.Practical implicationsFirstly, as NCD negatively impacts performance of ICJVs, project managers should pay attention to cultural issues and learn how to manage them; Secondly, as cooperative and competitive conflict management approaches have different moderating effects on the relationship between NCD and ICJV performance, project managers must choose appropriate conflict management styles in multination teams. Thirdly, as the avoiding approach has no significant moderating effect on the negative relationship between NCD and ICJV performance, it is important for Chinese partners not to employ avoiding approach to deal with conflicts in ICJV.Originality/valueThis study uniquely adds to the literature on cultural issues in managing ICJVs by integrating the moderating effects of conflict management approaches. The interactive effects of conflict management approaches and national cultural differences on ICJV project performance may contribute to the theories regarding conflict management theory in the context of cross-cultural management.

국제합작투자에서의 사회자본의 역할: 유대강도, 신뢰, 갈등, 합작성과의 구조적 관계

국제합작투자에서의 사회자본의 역할: 유대강도, 신뢰, 갈등, 합작성과의 구조적 관계

Combining process analysis method and four-pronged approach to integrate corporate sustainability metrics for assessing international construction joint ventures performance

Abstract While the number of publications on international construction joint ventures (ICJVs) performance assessment has gained attention, yet it suffers from the lack of complete and standardized appraisal. The incomplete ICJV performance metrics and the neglection of corporate sustainability (CS) performance indicators in the ICJVs performance assessment are the prime reasons for its inadequacy. This paper systematically reviews the literature on ICJVs performance measurement and integrates CS indicators into ICJV performance assessment using a hybrid technique, fusing process analysis method and four-pronged approach. Based on 86 articles retrieved from Scopus and the Web of Science, the results point out that while traditional economic indicators account for more than half of the extracted indicators, environmental and social indicators have been partially considered in ICJVs performance measurement. Moving forward, organizations have embraced the CS agenda, and its integration into businesses has been intensively present. In this study, 36 performance indicators were identified and categorized into five major constructs, namely: project-based performance, company/partner performance, perceived satisfaction, performance of the ICJV management, and socio-environmental performance. The novel contributions include updating and aggregating the discrete ICJVs performance metrics and introducing a new dimension of performance assessment into ICJVs. This study offers potential avenues for future research by triggering a shift from the confined economic and incomplete ICJV performance appraisal to a more complete and standardized performance evaluation. Consequently, managers and practitioners can use the novel framework for assessing their performance and reporting purposes. This study can contribute to global sustainable development and corporate competitive advantage. Lastly, this study enriches both ICJV performance and sustainability literature by providing a systematic review of extant literature.

Control, innovation and international joint venture performance: The moderating role of internal and external environments

This study aims to analyze how parent control strategies affect the degree of innovation in international joint ventures (IJVs) and how different types of innovation strategies - divided into radical and incremental innovation strategies - influence the performance of IJVs. This study uses the most widely adopted definition and operationalization of control in IJVs by Geringer and Hebert (1989), including the three dimensions: mechanisms, focus, and extent of control. These relationships are further analyzed by integrating internal and external moderating factors and their connections with IJV performance. Our theoretical analysis proposes that various control strategies differently influence an IJV’s innovation activities under various internal environmental moderating factors. These, in turn, differently influence the IJV performance. Furthermore, we suggest that the external environmental factors moderate the relationship between innovation strategies and performance of IJVs.