Hostname: page-component-8448b6f56d-gtxcr Total loading time: 0 Render date: 2024-04-19T15:38:28.370Z Has data issue: false hasContentIssue false
  • English
  • Français

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

Published online by Cambridge University Press:  02 February 2015

Michael Nippa ,
Schon Beechler  and
Andreas Klossek
Michael Nippa
Affiliation:
Freiberg University of Technology and Mining, Germany
Schon Beechler
Affiliation:
Duke Corporate Education, USA
Andreas Klossek
Affiliation:
Freiberg University of Technology and Mining, Germany
Get access Rights & Permissions [Opens in a new window]

Abstract

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.

Keywords

international joint venturesChinaperformancereviewsuccess factors跨国合资企业中华人民共和国绩效文献回顾成功因素
Type
Articles
Information
Management and Organization Review , Volume 3 , Issue 2 , July 2007 , pp. 277 - 310
Copyright
Copyright © International Association for Chinese Management Research 2007

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Barkema, H. G., Shenkar, O., Vermeulen, F., & Bell, J. H.J. 1997. Working abroad, working with others: How firms learn to operate international joint ventures. Academy of Management Journal, 40: 426–442.Google Scholar
Barney, J. B. 1991. Firm resources and sustained competitive advantage. Journal of Management, 17: 99–120.Google Scholar
Beamish, P. W. 1988. Multinational joint ventures in developing countries. London, UK: Routledge.Google Scholar
Beamish, P. W., & Kachra, A. 2004. Number of partners and JV performance. Journal of World Business, 39(2): 107–120.Google Scholar
Brouthers, K. D., Brouthers, L. E., & Werner, S. 2003. Transaction cost-enhanced entry mode choices and firm performance. Strategic Management Journal, 24: 1239–1248.Google Scholar
Brown, S. L., & Eisenhardt, K. M. 1995. Product development: Past research, present findings, and future directions. Academy of Management Review, 20: 343–378.Google Scholar
Buckley, P. J., & Glaister, K. W. 2002. What do we know about international joint ventures? In Contractor, F.J. & Lorange, P. (Eds.), Cooperative Strategies and Alliances: 49–69. Oxford, UK: Elsevier.Google Scholar
Choi, C.-B., & Beamish, P. W. 2004. Split management control and international joint venture performance. Journal of International Business Studies, 35: 201–215.Google Scholar
Contractor, F. J., & Lorange, P. 2002. Why should firms cooperate? The strategy and economics basis for cooperative ventures. In Contractor, F. J. & Lorange, P. (Eds.), Cooperative Strategies in International Business: 3–30. Oxford, UK: Elsevier.Google Scholar
Delios, A., & Beamish, P. W. 1999. Ownership strategy of Japanese firms: Transactional, institutional, and experience influences. Strategic Management Journal, 20: 915–933.3.0.CO;2-0>CrossRefGoogle Scholar
Delios, A., & Beamish, P. W. 2001. Survival and profitability: The roles of experience and intangible assets in foreign subsidiary performance. Academy of Management Journal, 44: 1028–1038.Google Scholar
Delios, A., & Beamish, P. W. 2004. Joint venture performance revisited: Japanese foreign subsidiaries worldwide. Management International Review, 44: 69–91.Google Scholar
Delios, A., Inkpen, A. C., & Ross, J. 2004. Escalation in international strategic alliances. Management International Review, 44: 457–479.Google Scholar
Dhanaraj, C., & Beamish, P. W. 2004. Effect of equity ownership on the survival of international joint ventures. Strategic Management Journal, 25: 295–305.Google Scholar
Dhanaraj, C., Lyles, M. A., Steensma, H. K., & Tihanyi, L. 2004. Managing tacit and explicit knowledge transfer in IJVs: The role of relational embeddedness and the impact on performance. Journal of International Business Studies, 35: 428–442.Google Scholar
DiMaggio, P. J., & Powell, W. W. 1983. The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48: 147–160.Google Scholar
Donaldson, L. 2001. The contingency theory of organizations. London, UK: Sage.Google Scholar
Doz, Y. 1996. The evolution of cooperation in strategic alliances: Initial conditions or learning processes? Strategic Management Journal, 17(Special Issue): 55–83.Google Scholar
Glaister, K. W., & Buckley, P.J. 1999. Performance relationships in UK international alliances. Management International Review, 39: 123–147.Google Scholar
Gong, Y., Shenkar, O., Luo, Y., & Nyaw, M.-K. 2005. Human resources and international joint venture performance: A system perspective. Journal of International Business Studies, 36: 505–518.Google Scholar
Hennart, J.-F., & Zeng, M. 2002. Cross-cultural differences and joint venture longevity. Journal of International Business Studies, 33: 699–716.Google Scholar
Hill, R. C., & Hellriegel, D. 1994. Critical contingencies in joint venture management: Some lessons from managers. Organization Science, 5: 594–607.Google Scholar
Isobe, T., Makino, S., & Montgomery, D. B. 2000. Resource commitment, entry timing, and market performance of foreign direct investments in emerging economies: The case of Japanese international joint ventures in China. Academy of Management Journal, 43: 468–484.Google Scholar
Jensen, M. C., & Meckling, W. H. 1976. Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3: 305–360.Google Scholar
Killing, J. P. 1983. Strategies for joint venture success. New York N.Y.: Praeger.Google Scholar
Kogut, B. 1988. Joint ventures: Theoretical and empirical perspectives. Strategic Management Journal, 9: 319–332.Google Scholar
Lane, P. J., Salk, J. E., & Lyles, M. A. 2001. Absorptive capacity, learning, and performance in international joint ventures. Strategic Management Journal, 22: 1139–1161.Google Scholar
Larimo, J. 2003. International joint venture strategies and performance in Asian countries. Paper presented at the 7th conference on global business and economic development, Bangkok.Google Scholar
Lee, C., & Beamish, P. W. 1995. The characteristics and performance of Korean joint ventures in LDCs. Journal of International Business Studies, 26: 637–654.Google Scholar
Li, H., & Atuahene-Gima, K. 2001. Product innovation strategy and the performance of new technology ventures in China. Academy of Management Journal, 44: 1123–1134.Google Scholar
Li, J., Lam, K., & Qian, G. 2001. Does culture affect behavior and performance of firms? The case of joint ventures in China. Journal of International Business Studies, 32: 115–131.Google Scholar
Lin, X., & Germain, R. 1998. Sustaining satisfactory joint venture relationships: The role of conflict resolution strategy. Journal of International Business Studies, 29: 179–196.Google Scholar
Lipsey, M. W., & Wilson, D. B. 2001. Practical meta-analysis. Thousand Oaks, Calif: Sage.Google Scholar
Lorange, P., & Roos, J. 1992. Strategic alliances: Formation, implementation, and evolution. Cambridge, Mass.: Blackwell Publishers.Google Scholar
Luo, Y. 1995. Business strategy, market structure, and performance of international joint ventures: The case of joint ventures in China. Management International Review, 35: 241–264.Google Scholar
Luo, Y. 1997. Partner selection and venturing success: The case of joint ventures with firms in the People's Republic of China. Organization Science, 8: 648–662.Google Scholar
Luo, Y. 2001. Antecedents and consequences of personal attachment in cross-cultural cooperative ventures. Administrative Science Quarterly, 46: 177–201.CrossRefGoogle Scholar
Luo, Y. 2002a. Stimulating exchange in international joint ventures: An attachment-based view. Journal of International Business Studies, 33: 169–181.CrossRefGoogle Scholar
Luo, Y. 2002b. Product diversification in international joint ventures: Performance implications in an emerging market. Strategic Management Journal, 23: 1–20.Google Scholar
Luo, Y. 2002c. Contract, cooperation, and performance in international joint ventures. Strategic Management Journal, 23: 903–919.Google Scholar
Luo, Y. 2005. How important are shared perceptions of procedural justice in cooperative alliances? Academy of Management Journal, 48: 695–709.Google Scholar
Luo, Y., & Park, S. H. 2001. Strategic alignment and performance of market-seeking MNCs in China. Strategic Management Journal, 22: 141–155.Google Scholar
Luo, Y., & Park, S. H. 2004. Multiparty cooperation and performance in international equity joint ventures. Journal of International Business Studies 35: 142–160.Google Scholar
Luo, Y., Shenkar, O., & Nyaw, M. K. 2001. A dual parent perspective on control and performance in international joint ventures: Lessons from a developing economy. Journal of International Business Studies, 32: 41–58.Google Scholar
Luo, Y., & Tan, J. 2003. Structuring international joint ventures: How should contractual design be aligned with environmental conditions? Management International Review, 43:185–211.Google Scholar
Lyles, M. A., & Baird, I. S. 1994. Performance of international joint ventures in two Eastern European countries: The case of Hungary and Poland. Management International Review, 34: 313–329.Google Scholar
Lyles, M. A., & Salk, J. E. 1996. Knowledge acquisition from foreign parents in international joint ventures: An empirical examination in the Hungarian context. Journal of International Business Studies, 27: 877–903.Google Scholar
Makino, S., & Beamish, P. W. 1998. Performance and survival of joint ventures with non-conventional ownership structures. Journal of International Business Studies, 29: 797–818.Google Scholar
Makino, S., & Delios, A. 1996. Local knowledge transfer and performance: Implications for alliance formation in Asia. Journal of International Business Studies, 27: 905–927.Google Scholar
Makino, S., Isobe, T., & Chan, C. M. 2004. Does country matter? Strategic Management Journal, 25: 1027–1043.Google Scholar
Malhotra, N. K., Agarwal, J., & Peterson, M. 1996. Methodological issues in cross-cultural marketing research. International Marketing Review, 13(5): 7–43.Google Scholar
March, J. G., & Sutton, R. I. 1997. Organizational performance as a dependent variable. Organization Science, 8: 698–706.CrossRefGoogle Scholar
Merchant, H. 2000. Configurations of international joint ventures. Management International Review, 40: 107–140.Google Scholar
Merchant, H. 2002. Shareholder value creation via international joint ventures: Some additional explanations. Management International Review, 42: 49–69.Google Scholar
Merchant, H. 2005. The structure-performance relationship in international joint ventures: A comparative analysis. Journal of World Business, 40(1): 41–56.Google Scholar
Merchant, H., & Schendel, D. 2000. How do international joint ventures create shareholder value? Strategic Management Journal, 21: 723–737.Google Scholar
Meschi, P.-X., & Cheng, L. T. W. 2002. Stock price reactions to Sino-European joint ventures. Journal of World Business, 37(2): 119–126.CrossRefGoogle Scholar
Mjoen, H., & Tallman, S. 1997. Control and performance in international joint ventures. Organization Science, 8: 257–274.Google Scholar
Nitsch, D., Beamish, P. W., & Makino, S. 1996. Entry mode and performance of Japanese FDI in Western Europe. Management International Review, 36: 27–43.Google Scholar
Osland, G. E., & Cavusgil, S. T. 1996. Performance issues in U.S.-China joint ventures. California Management Review, 38(2): 106–130.Google Scholar
Pan, Y., & Chi, P. S. K. 1999. Financial performance and survival of multinational corporations in China. Strategic Management Journal, 20: 359–374.Google Scholar
Park, S. H., & Ungson, G. R. 1997. The effect of national culture, organizational complementarity, and economic motivation on joint venture dissolution. Academy of Management Journal, 40: 279–307.Google Scholar
Parkhe, A. 1993. ‘Messy’ research, methodological predispositions, and theory development in international joint ventures. Academy of Management Review, 18: 227–268.CrossRefGoogle Scholar
Parkhe, A. 2004. International joint ventures. In Reuer, J. J. (Ed.), Strategic alliances: Theory and evidence: 69–91. Oxford, UK: Oxford University Press.Google Scholar
Porter, M. E. 1980. Competitive strategy. New York N.Y.: Free Press.Google Scholar
Pothukuchi, V., Damanpour, F., Choi, J., Chen, C. C., & Park, S. H. 2002. National and organizational culture differences and international joint venture performance. Journal of International Business Studies, 33: 243–265.Google Scholar
Reuer, J. J., & Leiblein, M.J. 2000. Downside risk implications of multinationality and international joint ventures. Academy of Management Journal, 43: 203–214.Google Scholar
Robins, J. A., Tallman, S., & Fladmoe-Lindquist, K. 2002. Autonomy and dependence of international cooperative ventures: An exploration of the strategic performance of U.S. ventures in Mexico. Strategic Management Journal, 23: 881–902.Google Scholar
Robson, M. J., Leonidou, L. C., & Katsikeas, C. S. 2002. Factors influencing international joint venture performance: Theoretical perspectives, assessment, and future directions. Management International Review, 42: 385–418.Google Scholar
Roy, A., Walters, P. G. P., & Luk, S. T. K. 2001. Chinese puzzles and paradoxes: Conducting business research in China. Journal of Business Research, 52: 203–210.Google Scholar
Shenkar, O., & Zeira, Y. 1987. Human resources management in international joint ventures: Directions for research. Academy of Management Review, 12: 546–557.Google Scholar
Sim, A. B., & Ali, Y. 1998. Performance of international joint ventures from developing and developed countries: An empirical study in a developing country context. Journal of World Business, 33(4): 357–377.CrossRefGoogle Scholar
Steensma, H. K., & Lyles, M. A. 2000. Explaining IJV survival in a transitional economy through social exchange and knowledge-based perspectives. Strategic Management Journal, 21: 831–851.Google Scholar
Steensma, H., Tihanyi, L., Lyles, M., & Dhanaraj, C. 2005. The evolving value of foreign partnerships in transitioning economies. Academy of Management Journal, 48: 213–235.Google Scholar
Vanhonacker, W. 1997. Entering China: An unconventional approach. Harvard Business Review, 75(2): 130–140.Google Scholar
Walsh, J. P., Wang, E., & Xin, K. R. 1999. Same bed, different dreams: Working relationships in Sino-American joint ventures. Journal of World Business, 34(1): 69–93.Google Scholar
Wang, P., Wee, C. H., & Koh, P. H. 1999. Establishing a successful Sino-foreign equityjoint venture: The Singapore experience. Journal of World Business, 34(3): 287–305.CrossRefGoogle Scholar
Williamson, O. E. 1996. The mechanisms of governance. New York N.Y.: Free Press.Google Scholar
Woodcock, C. P., Beamish, P. W., & Makino, S. 1994. Ownership-based entry mode strategies and international performance. Journal of International Business Studies, 25: 253–273.Google Scholar
Yiu, D., & Makino, S. 2002. The choice between joint venture and wholly owned subsidiary: An institutional perspective. Organization Science, 13:667–683.Google Scholar
Zhao, H., Luo, Y., & Suh, T. 2004. Transaction cost determinants and ownership-based entry choice: A meta-analytical review. Journal of International Business Studies, 35: 524–544.Google Scholar
Zeira, Y., Newburry, W., & Yeheskel, O. 1997. Factors affecting the effectiveness of equity international joint ventures in hungary. Management International Review, 37: 259–279.Google Scholar