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Building effective international joint venture leadership teams in China

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  • Li, Jiatao
  • Xin, Katherine R.
  • Tsui, Anne
  • Hambrick, Donald C.

Abstract

An overlooked factor affecting the success or failure of international joint ventures is the effectiveness of the leadership teams put in charge. In this paper, we analyze the special features of leadership teams in Chinese-foreign joint ventures and identify ways to improve their effectiveness. We identify five key elements of the IJV leadership team--composition, process, structure, incentives, and the leader's behaviors--that have important implications for IJV success. Our analysis is based on the literature on top management teams, cross-cultural behavior, international joint ventures, and our own in-depth interviews with leadership teams from international joint ventures in China.

Suggested Citation

  • Li, Jiatao & Xin, Katherine R. & Tsui, Anne & Hambrick, Donald C., 1999. "Building effective international joint venture leadership teams in China," Journal of World Business, Elsevier, vol. 34(1), pages 52-68, April.
    • Handle: RePEc:eee:worbus:v:34:y:1999:i:1:p:52-68
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    References listed on IDEAS

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    1. Oded Shenkar & Yoram Zeira, 1992. "Role Conflict and Role Ambiguity of Chief Executive Officers in International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(1), pages 55-75, March.
    2. Dacin, M. Tina & Hitt, Michael A. & Levitas, Edward, 1997. "Selecting partners for successful international alliances: Examination of U.S. and Korean firms," Journal of World Business, Elsevier, vol. 32(1), pages 3-16, April.
    3. 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.
    4. 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.
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    Cited by:

    1. Guoquan Chen & Dean Tjosvold, 2008. "Organizational values and procedures as antecedents for goal interdependence and collaborative effectiveness," Asia Pacific Journal of Management, Springer, vol. 25(1), pages 93-112, January.
    2. Chen, Yi Feng & Tjosvold, Dean, 2005. "Cross-cultural leadership: Goal interdependence and leader-member relations in foreign ventures in China," Journal of International Management, Elsevier, vol. 11(3), pages 417-439, September.
    3. Alfred Wong & Sofia Fang & Dean Tjosvold, 2012. "Developing business trust in government through resource exchange in China," Asia Pacific Journal of Management, Springer, vol. 29(4), pages 1027-1043, December.
    4. Nemeth, Alexander & Nippa, Michael, 2011. "Revisiting research on IJV exit: More questions than answers," Freiberg Working Papers 2011/03, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    5. Beaudoin, Cathy A. & Dang, Li & Fang, Qiaoling & Tsakumis, George T., 2012. "The agency problem and the moderating role of culturally based management style on Chinese managers’ discretionary accruals," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 21(2), pages 145-155.
    6. Marius G. Gehrisch & Stefan Süß, 2023. "Organizational behavior in international strategic alliances and the relation to performance – a literature review and avenues for future research," Management Review Quarterly, Springer, vol. 73(3), pages 1045-1107, September.
    7. Ting Liu & Ye Huang, 2024. "The influence of subnational corruption on the conversion of foreign proprietorship: Stumbling block or lubricant? Evidence from Sino-foreign joint ventures," Asia Pacific Journal of Management, Springer, vol. 41(1), pages 135-170, March.
    8. Alexander Nemeth & Michael Nippa, 2013. "Rigor and Relevance of IJV Exit Research," Management International Review, Springer, vol. 53(3), pages 449-475, June.
    9. Dean Tjosvold & Nancy Yifeng Chen & Xu Huang & Da Xu, 2014. "Developing Cooperative Teams to Support Individual Performance and Well-Being in a Call Center in China," Group Decision and Negotiation, Springer, vol. 23(2), pages 325-348, March.
    10. Gao, Jinsong & Arnulf, Jan Ketil & Henning, Kristoffersen, 2011. "Western leadership development and Chinese managers: Exploring the need for contextualization," Scandinavian Journal of Management, Elsevier, vol. 27(1), pages 55-65, March.
    11. Jing Yang & Frank Tipton & Jiatao Li, 2011. "A review of foreign business management in China," Asia Pacific Journal of Management, Springer, vol. 28(3), pages 627-659, September.
    12. Dean Tjosvold & Ann Peng & Yi Chen & Fang Su, 2008. "Business and government interdependence in China: Cooperative goals to develop industries and the marketplace," Asia Pacific Journal of Management, Springer, vol. 25(2), pages 225-249, June.
    13. Ilya R. P. Cuypers & Charmi Patel & Gokhan Ertug & Jiatao Li & Youtha Cuypers, 2022. "Top management teams in international business research: A review and suggestions for future research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(3), pages 481-515, April.
    14. Guoquan Chen & Dean Tjosvold, 2012. "Shared rewards and goal interdependence for psychological safety among departments in China," Asia Pacific Journal of Management, Springer, vol. 29(2), pages 433-452, June.
    15. Yeheskel, Orly & Newburry, William & Zeira, Yoram, 2004. "Significant differences in the pre- and post-incorporation stages of equity international joint ventures (IJVs) and international acquisitions (IAs), and their impacts on effectiveness," International Business Review, Elsevier, vol. 13(5), pages 613-636, October.
    16. 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.
    17. Haizhen Wang & Jie Feng & Xinmei Liu & Ruoyong Zhang, 2011. "What is the benefit of TMT’s governmental experience to private-owned enterprises? Evidence from China," Asia Pacific Journal of Management, Springer, vol. 28(3), pages 555-572, September.
    18. Ponomareva, Yuliya & Uman, Timur & Bodolica, Virginia & Wennberg, Karl, 2022. "Cultural diversity in top management teams: Review and agenda for future research," Journal of World Business, Elsevier, vol. 57(4).
    19. Nemeth, Alexander, 2012. "A framework of international joint ventures exit: A resource dependence and learning perspective," Freiberg Working Papers 2012/02, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    20. Wu, Long-Zeng & Ferris, D. Lance & Kwan, Ho Kwong & Chiang, Flora & Snape, Ed & Liang, Lindie H., 2015. "Breaking (or making) the silence: How goal interdependence and social skill predict being ostracized," Organizational Behavior and Human Decision Processes, Elsevier, vol. 131(C), pages 51-66.
    21. Kwok, Francis & Sharma, Piyush & Gaur, Sanjaya Singh & Ueno, Akiko, 2019. "Interactive effects of information exchange, relationship capital and environmental uncertainty on international joint venture (IJV) performance: An emerging markets perspective," International Business Review, Elsevier, vol. 28(5), pages 1-1.

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