Success Of International Joint Ventures Research Articles

Effects of Cross-Cultural Negotiation Strategies on International Joint Venture Success

Purpose: The aim of the study was to assess the effects of cross-cultural negotiation strategies on international joint venture success. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Cross-cultural negotiation strategies play a pivotal role in the success of international joint ventures (IJVs). Research suggests that effective negotiation tactics tailored to the cultural context of the parties involved significantly enhance the likelihood of achieving mutually beneficial outcomes and sustaining long-term partnerships. Studies have shown that cultural differences in communication styles, decision-making processes, and conflict resolution approaches can either facilitate or hinder negotiation effectiveness. Utilizing strategies such as cultural adaptation, empathy, active listening, and flexibility can bridge cultural gaps, foster trust, and facilitate collaboration among partners from diverse cultural backgrounds. Conversely, neglecting cultural nuances or employing ethnocentric negotiation tactics may lead to misunderstandings, conflicts, and ultimately, the failure of the joint venture. Therefore, understanding and integrating cross-cultural negotiation strategies are imperative for maximizing the success of international joint ventures in today's globalized business environment. Implications to Theory, Practice and Policy: Hofstede's cultural dimensions' theory, intercultural communication theory and cognitive adaptation theory may be use to anchor future studies on assessing the effects of cross-cultural negotiation strategies on international joint venture success. Develop tailored training programs and resources to enhance negotiators' cultural intelligence and competency in cross-cultural negotiation strategies. Advocate for the integration of cross-cultural negotiation competency standards into international business education curricula at academic institutions.

Strategic agility and international joint ventures: The willingness-ability paradox of family firms

Abstract Despite the considerable increase in studies on international joint ventures (IJVs) and family business, the two research streams have yet to be systemically integrated. Family firms have unique characteristics that affect their involvement in IJVs differently from their non-family counterparts. Indeed, family firms face a paradox entailing a lower willingness to form IJVs, but a higher ability to govern them. Drawing on three distinct components of strategic agility (i.e., strategic sensitivity, leadership unity, and resource fluidity), we develop a theoretical framework that unravels this paradox. Specifically, we argue that strong emotional attachment reduces family firms' strategic sensitivity, creating a motivational gap with respect to forming IJVs. On the other hand, when family firms overcome this gap by making full use of their board of directors, they have higher levels of leadership unity and resource fluidity. These dimensions lead to a greater ability to govern the complexities of the relationship, hence reducing opportunistic hazards, and significantly increasing the odds of the long-term success of IJVs. We develop propositions for empirical studies, and offer implications and directions for future research.

Rethinking Management Theory and Practice for the Indian Context: An International Management Perspective

The Indian economy characterized variously as a slumbering giant, powerful tiger, and the most promising market has witnessed a slowdown, occasional disturbances in the industrial relations space, and attention of the world in the last five years. In this special issue, we raise pertinent questions and present research on multiple dimensions of the dynamic and rapidly changing business environment of India. The suitability of management models and frameworks developed in the North American contexts in emerging markets like India and China is questioned. One example of how the well-established models in the literature on success of international joint ventures were insufficient to explain the success of three international joint ventures in the insurance space in India is presented as case in point. Finally, the nine papers that materially contribute to the theme of this special issue are introduced. © 2016 Wiley Periodicals, Inc.

How Do Managers Evaluate International Joint Venture Partners?

Partner selection is a key aspect for the success of International Joint Ventures (IJVs). However, the role played by managers in the partner selection process is under-researched, and we contribut...

Host Country Perspectives on the Attributions of Partner for the Success of International Joint Ventures

Host Country Perspectives on the Attributions of Partner for the Success of International Joint Ventures

International Joint Ventures Among Developing Country Multinationals: The Case of Salinas Group-FAW

I study the determinants of the success of international joint ventures (IJVs) among developing country multinational companies. From the analysis of the case of the IJV between the Mexican conglomerate Salinas Group and the Chinese automobile producer FAW I conclude two points. First, IJVs among developing country firms reveal an implicit assumption of a tension due to helping an industry competitor and gaining market knowledge and technology. Second, IJVs among developing country firms reveal the unique challenge of having to face the perceived disadvantage of lower quality of products created by developing country firms.

Trust, Knowledge Transfer and Control in IJVs: The Case of Four Greek Firms

The main objective of this paper is to investigate specific factors and their impact on the development of trust and on knowledge transfer success in International Joint Ventures (IJVs) with at least one Greek partner. We further expand our previous work and argue that the type of knowledge (tacit/explicit) and the proper control mechanism play an important role for the creation of trust between partners and affect knowledge transfer success. Four, in depth interviews with presidents/CEOs of Greek companies with IJV participation, were conducted. Overall, they consider the transfer of knowledge from their companies to the IJVs as very successful. The results indicate that tacit knowledge is considered to be one of the major strengths of the Greek companies and among their most important contributions to the IJVs. Furthermore, tacit knowledge and trust were revealed as key factors to IJV success. Finally, our findings reveal that formal and clear control mechanisms are positively related to the development of trust when they are established at the initial stages of the IJV establishment.

International joint ventures in Russia: Cultures' influences on alliance success

This paper investigates the influence of organizational culture on the strategic success of International Joint Ventures (IJVs) in Russia and the importance of cultural ‘fit’ of alliance partners within this transition economy. Difficult-to-access and rare data is gathered from a sample of IJVs manager in Russia in a strategy-as-practice approach. Questionnaires and in-depth interviews reveal different clusters of values and practices amongst managers and, contrary to previous research, the study suggests that within a transition economy values are not universally applied but influenced by tradition. Adopted organizational culture is also found to be dependent on the dominant IJV stake holding with culture influencing perceived IJV strategic performance. An element of congruency is identified between tradition and openness to change values.

Organizational structure and success of international joint ventures in emerging economies: the case of Spanish–Moroccan SMEs

One of the most common ways in which SMEs internationalize their business is through the creation of joint ventures; nevertheless, many of these fail. To avoid this risk, it is important to identify the factors that favour the continuity of such enterprises. The aim of this paper is to analyse the factors related to organizational structure that determine the success of international joint ventures between SMEs in emerging economies, taking as the particular area of study the question of joint ventures between Spanish and Moroccan firms, located in Morocco. The research hypotheses were tested using a linear regression model applied to a sample of 210 international joint ventures. The results obtained from a structured survey show that, with respect to the success of the partnership, significant factors include the existence of majority ownership by the foreign partner, management by a local CEO and the effort made by each party to adapt to the management style of the other. This research contributes to the knowledge of the main factors related to the organizational structure of joint ventures that influence the level of success achieved. The value provided by this research lies in the breadth of the sample examined, in its focus on a very common type of partnership between SMEs, on which very little has been previously studied, and in the fact that the results obtained are extensible to other realities, such as partnerships between European companies and those from countries with similar characteristics (located in Africa or in countries where an Arab culture prevails).

Success predictor for international joint ventures in Vietnam

PurposeThe purpose of this paper is to determine a success predictor for Vietnam‐based international joint ventures (IJVs).Design/methodology/approachUsing the multiple case study method, seven successful IJVs in Ho Chi Minh City – Vietnam's largest and most economically dynamic metropolitan area – were examined by reviewing their business records and by personal interviews with senior management and staff. Two specific types of data collection procedures were applied: methodological triangulation (using multiple methods of data capture: in‐depth interviews, non‐participation observation during visits, and analysis both of companies' internal and external documents) and data triangulation (using a variety of data sources: spreading out during a 30‐month period and involved 75 in‐depth face to face interviews).FindingsSuccessful IJVs in Vietnam usually use four popular control mechanisms. Action‐control, result‐control, and personnel‐control mechanisms co‐exist in a closely‐knit environment yet still influence each other in a process assisted by relationship control mechanism. As a condition for success, an IJV should have at least one control mechanism at a high level of importance with no control mechanisms positioned at a low level of importance.Originality/valueThose who are building successful IJVs in Vietnam should first determine proper control mechanisms necessary for IJV success. It also proves useful and helpful if investors and local government use these results to jointly develop successful IJVs for the benefit of Vietnam's economy and society.

Performance of International Joint Ventures in Construction

International joint ventures (IJVs) have become popular because of their importance as a strategic alternative in global competition. The measurement of the performance of IJVs has been an important research topic for a few decades, however there is no consensus on an appropriate definition and measurement of IJV performance. In this study, a model is proposed to assess IJV performance in construction. The validity of the proposed drivers and measures of performance is investigated and relationships between them are analyzed. The effects of interpartner fit/relations, structural IJV characteristics, host country factors, and project-related factors on IJV performance are examined through a questionnaire survey. IJV performance is defined by a four-dimensional construct that considers the performance of the project, the IJV partners, the IJV organization itself, and the perceptions of the IJV partners. The results point out the significance of the interpartner fit and the quality of partner relations for a successful IJV operation. The findings of the study also suggest that project-related factors have a moderate influence on IJV performance. In a properly designed IJV structure, partners with compatible skills, resources, and cultures are found to maintain good relations and are expected to achieve greater IJV success.

Host-country policies and MNE management control in IJVs: Evidence from China

In international joint ventures (IJVs), partner firms exert three types of management control: output, process, and social. Since management control critically influences IJV success, it is essential to understand what factors drive the development of the control system. Prior studies have focused mainly on IJVs’ internal conditions, and have largely neglected external institutional influences on IJV control. In this study we explore how host-country policies affect MNE partners’ control over their IJVs. Using a sample of IJVs in China, we find that MNE partners tend to exercise less output and process control when minority equity restriction is present, greater process control when they receive government incentives, and less social control when they are required to partner with state-owned enterprises. In contrast, the results of a post hoc analysis show that local partners’ control activities are not significantly influenced by these policies. Our findings provide new insights into IJV management by demonstrating the impacts of regulatory institutions on partners’ control activities.

Effect of Partner Fit in International Construction Joint Ventures

Joint ventures have been an important research topic over the last few decades primarily because of their importance as a strategic alternative in global competition. Due to the inherent complexities of international joint ventures (IJVs), involving a mixture of different managerial systems, attitudes, and business strategies, such entities are very difficult to manage. In this study, the effect of strategic, organizational, and cultural fit between IJV partners and of interpartner relations on IJV performance is examined through a questionnaire survey. IJV performance is measured by means of two constructs: “project performance” and “performance of IJV management.” The results point out the significance of the quality of partner relations for a successful IJV operation. Findings of the study also suggest that the level of organizational fit between the partners has a moderate influence on IJV performance. It was observed that strategic fit between IJV partners affects interpartner relations extensively, which in turn affects IJV performance. IJV partners with compatible technical and managerial skills, financial resources, organizational size, workload, and project experiences are expected to achieve greater IJV success.

Success Factors for Managing International Joint Ventures: A Review and an Integrative Framework

International joint ventures (IJV) are an important organizational mode for expanding and sustaining global business and have been of special relevance for the emerging Chinese market for decades. While IJVs offer specific economic advantages they also present serious management problems that lead to high failure rates, especially in developing countries. Because of the strategic relevance of IJVs and corresponding management challenges, research on success factors for managing IJVs in China has received broad attention, resulting in a variety of studies. However, there are no conceptual syntheses of the literature to date and further development in the field is hampered by both a lack of consolidation of what is known and identification of viable avenues for future research. We address this gap by building on existing concepts in the field, developing them further and synthesizing them into an integrative, theory-based framework of IJV success factors. We use this framework to systematically depict the results of both empirical studies related to Sino-foreign IJVs and to IJVs in general. Finally, we draw important implications from the research and propose potential paths for future study.

Post‐Formation Processes in Eastern and Western European Joint Ventures*

abstract This study examines the post‐formation processes that firms use to create successful international joint ventures (IJVs). Scholars have suggested that IJV performance is dependent on the post‐formation processes firms institute to overcome barriers to success created by differences in national culture, trust, ownership positions and control mechanisms. Based on a longitudinal study of eight eastern/western European IJVs, our study provides insights into these post‐formation processes, how these processes relate to each other, and how they relate to managers’ evaluations of IJV success.

Joint venture conflict: the case of Russian international joint ventures

This paper investigates the importance of firms forming joint ventures having similar organizational climates such that the chances of inter-party conflict arising will be minimized. The study is based on 40 Russian international joint ventures (IJVs) and has both qualitative and quantitative elements. Support was provided for inter-party IJV conflict being an important outcome of IJV activity to monitor (and try to minimize) when evaluating IJV success. Further, evidence was presented to show that similar firms forming an IJV are more likely to have less conflict than more dissimilar firms.

Joint venture success in China: How should we select a good partner?

The success of international joint ventures investing in emerging economies, most notably China, largely depends on the selection of local partners. This study illuminates various partner selection criteria that are important to the survival and growth of foreign companies active in China. Broadly, this study reiterates three categories of criteria: strategic, organizational, and financial. A partner with superior strategic traits but lacking strong organizational and financial characteristics may result in an unstable joint venture. The possession of desirable organizational attributes without corresponding strategic and financial competence may leave the joint venture unprofitable. A partner with superior financial strengths without strategic and organizational competencies can lead to an unsustainable venture. The managerial implications for world business managers are highlighted.

The role of human resource management in international joint ventures: a study of Australian-Indian joint ventures

Little has been reported to date on human resource aspects of international joint ventures (IJVs) between Australia and India. On the basis of nine case studies, this paper examines the influence of HR practices on selecting the IJV as an entry strategy to invest in India and the role of efficient HR management in ensuring IJV success. The case findings suggest that there is a very moderate HR-related influence on the entry mode decision, whereas HR management plays a significant role in IJV success. The paper also identifies several HR issues in relation to Australian-Indian joint ventures which emerged during the study.