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

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  • Omayma Yassine

Abstract

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.

Suggested Citation

  • Omayma Yassine, 2023. "Understanding the Paradox in the Results of National Cultural Distance Impact on International Joint Venture Performance: A Narrative Review of Prior Literature," Modern Applied Science, Canadian Center of Science and Education, vol. 17(1), pages 1-1, May.
    • Handle: RePEc:ibn:masjnl:v:17:y:2023:i:1:p:1
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    References listed on IDEAS

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    1. Jane Lu & Xufei Ma, 2015. "Partner resource asymmetry and IJV survival," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 1039-1064, December.
    2. Ng, Paul Wai-Kit & Lau, Chung-Ming & Nyaw, Mee-Kau, 2007. "The effect of trust on international joint venture performance in China," Journal of International Management, Elsevier, vol. 13(4), pages 430-448, December.
    3. Meschi, Pierre-Xavier & Riccio, Edson Luiz, 2008. "Country risk, national cultural differences between partners and survival of international joint ventures in Brazil," International Business Review, Elsevier, vol. 17(3), pages 250-266, June.
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    5. 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.
    6. Dora Triki & Ulrike Mayrhofer, 2016. "Do initial characteristics influence IJV longevity? Evidence from the Mediterranean region," Post-Print hal-01333777, HAL.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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