IDEAS home Printed from https://ideas.repec.org/a/eee/worbus/v33y1998i4p357-377.html
   My bibliography  Save this article

Performance of international joint ventures from developing and developed countries: An empirical study in a developing country context

Author

Listed:
  • Sim, A.B
  • Ali, Yunus

Abstract

In response to the need for research on International Joint Ventures (IJVs) from developing countries, this paper examines the multivariate determinants of performance of 59 IJVs from both developing and developed countries in a developing country context. Resource complementarity, cooperation, joint venture experience, technology and export-orientation were found to be significant determinants of performance of joint ventures. While the determinants varied for IIVs from developing and developed countries, there were no significant differences in their performance levels. The empirical findings and their implications, including limitations and areas for further research are discussed.

Suggested Citation

  • Sim, A.B & Ali, Yunus, 1998. "Performance of international joint ventures from developing and developed countries: An empirical study in a developing country context," Journal of World Business, Elsevier, vol. 33(4), pages 357-377, January.
    • Handle: RePEc:eee:worbus:v:33:y:1998:i:4:p:357-377
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1090951699800807
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yigang Pan & David K Tse, 1996. "Cooperative Strategies between Foreign Firms in an Overseas Country," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(5), pages 929-946, December.
    2. Donald J Lecraw, 1983. "Performance of Transnational Corporations in Less Developed Countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 14(1), pages 15-33, March.
    3. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 411-432, September.
    4. J Michael Geringer & Louis Hebert, 1989. "Control and Performance of International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 20(2), pages 235-254, June.
    5. Arvind Parkhe, 1991. "Interfirm Diversity, Organizational Learning, and Longevity in Global Strategic Alliances," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(4), pages 579-601, December.
    6. Pierre Dussauge & Bernard Garrette, 1995. "Determinants of Success in International Strategic Alliances: Evidence from the Global Aerospace Industry," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(3), pages 505-530, September.
    7. Anoop Madhok, 1995. "Revisiting Multinational firm's Tolerance for Joint Ventures: A Trust-Based approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(1), pages 117-137, March.
    8. Jean-François Hennart, 1991. "The Transaction Costs Theory of Joint Ventures: An Empirical Study of Japanese Subsidiaries in the United States," Management Science, INFORMS, vol. 37(4), pages 483-497, April.
    9. Paul W Beamish & John C Banks, 1987. "Equity Joint Ventures and Theory of the Multinational Enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 18(2), pages 1-16, June.
    10. J Michael Geringer, 1991. "Strategic Determinants of Partner Selection Criteria in International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(1), pages 41-62, March.
    11. Jakki Mohr & Robert Spekman, 1994. "Characteristics of partnership success: Partnership attributes, communication behavior, and conflict resolution techniques," Strategic Management Journal, Wiley Blackwell, vol. 15(2), pages 135-152, February.
    12. Yigang Pan & David K Tse, 1996. "Cooperative Strategies between Foreign Firms in an Overseas Country," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(4), pages 929-946, December.
    13. Bruce Kogut, 1988. "Joint ventures: Theoretical and empirical perspectives," Strategic Management Journal, Wiley Blackwell, vol. 9(4), pages 319-332, July.
    14. Chol Lee & Paul W Beamish, 1995. "The Characteristics and Performance of Korean Joint Ventures in LDCS," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(3), pages 637-654, September.
    15. Stephen B Tallman & Oded Shenkar, 1994. "A Managerial Decision Model of International Cooperative Venture Formation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(1), pages 91-113, March.
    16. Benjamin Gomes-Casseres, 1990. "Firm Ownership Preferences and Host Government Restrictions: An Integrated Approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 21(1), pages 1-22, March.
    17. C Patrick Woodcook & Paul W Beamish & Shige Makino, 1994. "Ownership-Based Entry mode Strategies and International Performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(2), pages 253-273, June.
    18. Scott Shane, 1994. "The effect of national culture on the choice between licensing and direct foreign investment," Strategic Management Journal, Wiley Blackwell, vol. 15(8), pages 627-642, October.
    19. Bernard Garrette & Pierre Dussauge, 1995. "Determinants of Success in International Strategic Alliances: Evidence from the Global Aerospace Industry," Post-Print hal-00458889, HAL.
    20. Yigang Pan, 1996. "Influences on Foreign Equity Ownership Level in Joint Ventures in China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(1), pages 1-26, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yadong Luo & Huan Zhang & Juan Bu, 2019. "Developed country MNEs investing in developing economies: Progress and prospect," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 633-667, June.
    2. Thompson, Edmund R., 2002. "Clustering of Foreign Direct Investment and Enhanced Technology Transfer: Evidence from Hong Kong Garment Firms in China," World Development, Elsevier, vol. 30(5), pages 873-889, May.
    3. Merchant, Hemant, 2012. "The characteristics and stock-market performance of international joint ventures located in three host-country groups: An extension and empirical validation," International Business Review, Elsevier, vol. 21(6), pages 1173-1189.
    4. Justine Kyove & Katerina Streltsova & Ufuoma Odibo & Giuseppe T. Cirella, 2021. "Globalization Impact on Multinational Enterprises," World, MDPI, vol. 2(2), pages 1-15, April.
    5. Chiao, Yu-Ching & Yu, Chwo-Ming Joseph & Peng, Ju-Tzu Ann, 2009. "Partner nationality, market-focus and IJV performance: A contingent approach," Journal of World Business, Elsevier, vol. 44(3), pages 238-249, July.
    6. repec:rdg:wpaper:em-dp2004-16 is not listed on IDEAS
    7. Merchant, Hemant, 2005. "The structure-performance relationship in international joint ventures: a comparative analysis," Journal of World Business, Elsevier, vol. 40(1), pages 41-56, February.
    8. Bianchi, Constanza C. & Saleh, Md. Abu, 2011. "Antecedents of importer relationship performance in Latin America," Journal of Business Research, Elsevier, vol. 64(3), pages 258-265, March.
    9. Ali, Tahir & Khalid, Saba & Shahzad, Khuram & Larimo, Jorma, 2021. "Managing international joint ventures to improve performance: The role of structural and social mechanisms," International Business Review, Elsevier, vol. 30(3).
    10. Saleh, M. Abu & Ali, M. Yunus & Mavondo, Felix T., 2014. "Drivers of importer trust and commitment: Evidence from a developing country," Journal of Business Research, Elsevier, vol. 67(12), pages 2523-2530.
    11. Håkanson, Lars & Ambos, Björn & Schuster, Anja & Leicht-Deobald, Ulrich, 2016. "The psychology of psychic distance: Antecedents of asymmetric perceptions," Journal of World Business, Elsevier, vol. 51(2), pages 308-318.
    12. Nisar, Shaista & Boateng, Agyenim & Wu, Junjie, 2018. "The entry mode strategy and performance of SMEs: Evidence from Norway," Research in International Business and Finance, Elsevier, vol. 45(C), pages 323-333.
    13. Halynska, Yuliia, 2017. "Developing The Strategies For Implementation Of Collaborative Alliance In The Extractive Field," EUREKA: Social and Humanities, Scientific Route OÜ, issue 4, pages 13-20.
    14. Boateng, Agyenim & Glaister, Keith W., 2002. "Performance of international joint ventures: evidence for West Africa," International Business Review, Elsevier, vol. 11(5), pages 523-541, October.
    15. Triki, Dora & Mayrhofer, Ulrike, 2016. "Do initial characteristics influence IJV longevity? Evidence from the Mediterranean region," International Business Review, Elsevier, vol. 25(4), pages 795-805.
    16. Taco H. Reus & Daniel Rottig, 2009. "Meta-analyses of International Joint Venture Performance Determinants," Management International Review, Springer, vol. 49(5), pages 607-640, October.
    17. Abu Saleh, Md. & Yunus Ali, M. & Julian, Craig C., 2014. "International buyer behaviour–commitment relationship: An investigation of the empirical link in importing," International Business Review, Elsevier, vol. 23(2), pages 329-342.
    18. Billur Akdeniz, M. & Berk Talay, M., 2022. "Happily (N)ever after: An empirical examination of the termination of IJVs across emerging versus developed markets," Journal of Business Research, Elsevier, vol. 148(C), pages 390-404.
    19. Beamish, Paul W. & Lupton, Nathaniel C., 2016. "Cooperative strategies in international business and management: Reflections on the past 50 years and future directions," Journal of World Business, Elsevier, vol. 51(1), pages 163-175.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael Nippa & Jeffrey J Reuer, 2019. "On the future of international joint venture research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 555-597, June.
    2. Pan, Yigang & Li, Xiaolian, 1998. "Alliance of foreign firms in equity joint ventures in China," International Business Review, Elsevier, vol. 7(4), pages 329-350, August.
    3. Cuypers, I.R.P., 2009. "Essays on equity joint ventures, uncertainty and experience," Other publications TiSEM 8dc79e86-c625-467f-a450-8, Tilburg University, School of Economics and Management.
    4. Bell, J.H.J., 1996. "Joint or Single Venturing? : An Electric Approach to Foreign Entry Mode Choice," Other publications TiSEM 06f84735-3cf5-432f-8bc8-c, Tilburg University, School of Economics and Management.
    5. Glaister, Keith W. & Buckley, Peter J., 1998. "Management-performance relationships in UK joint ventures," International Business Review, Elsevier, vol. 7(3), pages 235-257, June.
    6. Banerji, Kunal & Sambharya, Rakesh B., 1998. "Effect of network organization on alliance formation: A study of the Japanese automobile ancillary industry," Journal of International Management, Elsevier, vol. 4(1), pages 41-57, July.
    7. Morschett, Dirk & Schramm-Klein, Hanna & Swoboda, Bernhard, 2010. "Decades of research on market entry modes: What do we really know about external antecedents of entry mode choice?," Journal of International Management, Elsevier, vol. 16(1), pages 60-77, March.
    8. Chris Changwha Chung & Paul W. Beamish, 2010. "The Trap of Continual Ownership Change in International Equity Joint Ventures," Organization Science, INFORMS, vol. 21(5), pages 995-1015, October.
    9. repec:rdg:wpaper:em-dp2004-16 is not listed on IDEAS
    10. Hanvanich, Sangphet & Çavusgil, S. Tamer, 2001. "Stock market reactions to international joint venture announcement: an event analysis," International Business Review, Elsevier, vol. 10(2), pages 139-154, April.
    11. Lee, Ji-Ren & Chen, Wei-Ru & Kao, Charng, 1998. "Bargaining power and the trade-off between the ownership and control of international joint ventures in China," Journal of International Management, Elsevier, vol. 4(4), pages 353-385, December.
    12. Tsang, Eric W.K., 2005. "Influences on foreign ownership level and entry mode choice in Vietnam," International Business Review, Elsevier, vol. 14(4), pages 441-463, August.
    13. repec:dau:papers:123456789/2221 is not listed on IDEAS
    14. Billur Akdeniz, M. & Berk Talay, M., 2022. "Happily (N)ever after: An empirical examination of the termination of IJVs across emerging versus developed markets," Journal of Business Research, Elsevier, vol. 148(C), pages 390-404.
    15. Zhang, Anming, 2005. "Competition Models of Strategic Alliances," Research in Transportation Economics, Elsevier, vol. 13(1), pages 75-100, January.
    16. Zhao, Hongxin & Zhu, Gangti, 1998. "Determinants of ownership preference of international joint ventures: new evidence from Chinese manufacturing industries," International Business Review, Elsevier, vol. 7(6), pages 569-589, November.
    17. Yan, Aimin & Gray, Barbara, 2001. "Negotiating control and achieving performance in international joint ventures: A conceptual model," Journal of International Management, Elsevier, vol. 7(4), pages 295-315.
    18. Luo, Yadong, 2002. "Partnering with foreign businesses: perspectives from Chinese firms," Journal of Business Research, Elsevier, vol. 55(6), pages 481-493, June.
    19. Michael A Sartor & Paul W Beamish, 2018. "Host market government corruption and the equity-based foreign entry strategies of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(3), pages 346-370, April.
    20. Demirbag, Mehmet & Tatoglu, Ekrem & Glaister, Keith W., 2009. "Equity-based entry modes of emerging country multinationals: Lessons from Turkey," Journal of World Business, Elsevier, vol. 44(4), pages 445-462, October.
    21. Daphne Yiu & Shige Makino, 2002. "The Choice Between Joint Venture and Wholly Owned Subsidiary: An Institutional Perspective," Organization Science, INFORMS, vol. 13(6), pages 667-683, December.
    22. Yadong Luo, 2007. "Private control and collective control in international joint ventures," Management International Review, Springer, vol. 47(4), pages 531-566, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:worbus:v:33:y:1998:i:4:p:357-377. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.