Collectivist values for constructive conflict management in international joint venture effectiveness

2018 ◽  
Vol 29 (1) ◽  
pp. 126-143 ◽  
Author(s):  
Alfred Wong ◽  
Lu Wei ◽  
Xinyan Wang ◽  
Dean Tjosvold

Purpose This study aims to identify mechanisms to manage conflicts that occur when organizations with different cultures, habits and experiences try to coordinate effectively in international joint ventures (IJV). This study proposes that partners can promote their joint venture performance to the extent that they rely on cooperative rather than competitive conflict management. This study further hypothesizes that adopting collectivist values strengthens relationships and thereby provides a foundation for cooperative conflict management. Design/methodology/approach The authors collected data for this study in Shanghai, which is currently the most attractive province in China for FDI (FDI Intelligence, 2014). In all, 75 pairs of foreign and Chinese managers at middle and senior levels, knowledgeable about the joint venture relationships, completed their respective questionnaires. Findings Results of the structural equation analyses support the hypotheses that collectivist values support cooperative conflict management that in turn facilitates joint venture learning and performance. In contrast, individualistic values promoted competitive conflict management which in turn frustrated IJV performance. Practical implications Results suggest that IJV managers can strengthen their venture by developing collective values and training such cooperative conflict management skills as self-expression and demonstrating understanding of opposing views. Originality/value This study directly documents that while conflicts may interfere they can also stimulate discussions and decisions that promote coordination and performance of IJVs. This study contributes to conflict management research that has largely focused on investigating the consequences of approaches by examining conditions that promote constructive conflict management approaches.

2015 ◽  
Vol 10 (1) ◽  
pp. 52-72 ◽  
Author(s):  
Jorma Antero Larimo ◽  
Huu Le Nguyen

Purpose – The purpose of this paper is to analyse investment strategies and performance of Finnish firms in their international joint ventures (IJVs) established in Baltic States. Design/methodology/approach – The paper analyse performance of IJVs in Baltic States based on the IJV theory, international business literature, and foreign direct investments in Central and Eastern Europe (CEE) literature. The analysed factors include firm, investment, and inter-partner relationship-specific factors. To examine the propositions the paper used ten IJVs established by Finnish firms in various Baltic States between the period 1991 and 2005. Findings – The results show that the level of uncertainties in the countries and the differences between partners are not related to firms’ commitments and the entry mode choice. Several Finnish firms preferred cost leadership to compete with other firms in the local markets. In most cases there was a positive relationship between the level of partners’ equity share, commitment to the IJV, and the level of trust between partners. The results indicated differences in the IJV performance depending on parent firms’ objectives, their competitive strategies, mode of entry, age of IJVs, control strategies, level of trust, and commitment between partners, as well as depending on the performance measures used. Practical implications – This study suggests four observations that managers may need to take into consideration to improve IJV performance in the Baltic States. First, cost leadership strategy help to increase IJV performance in terms of sales. Second, social control mechanisms and narrow control leaded to better performance than formal and wide control. Third, minority ownership by Finnish firms in IJVs leaded to better performance based on sales, productivity and total performance whereas majority ownership had leaded to better performance in terms of total costs. Finally, the results confirmed that commitment to the IJV operation and trust on the other partner are very essential factors to IJV performance. Originality/value – The study is the first one to analyse in more detail based on several cases the IJV strategies and performance of Finnish firms in the Baltic States. The analysed factors include several such factors which have not been analysed related to IJV operations in Baltic States (some also limitedly in the CEE context).


foresight ◽  
2019 ◽  
Vol 21 (2) ◽  
pp. 200-215 ◽  
Author(s):  
Nakul Parameswar ◽  
Sanjay Dhir

Purpose This paper aims to explore dynamics of post termination interaction between international joint venture (IJV) partners and empirically examines IJV level and dyad level factors that influence the choice of post IJV termination interaction as supplier, complement or competitor. Design/methodology/approach In-depth literature review is undertaken to identify IJV and dyad level that could influence the choice of post termination interaction between terminated IJV partners. Hypotheses are empirically validated using multinomial logistic regression on data collected on terminated IJV headquartered in India. Findings The results denote that the choice of post-IJV termination interaction between IJV partners as supplier, complement or competitor is influenced by interdependence, bargaining power, foreign partner’s purpose of IJV, complementarity and type of IJV termination. Research limitations/implications This paper explores an under researched area in extant IJV literature that could be taken up for study by academicians. The paper upholds and strengthens the dynamic capabilities view of strategic management in IJV context. Practical implications This paper examines a practice adopted by businesses in emerging markets and determines important factors that influence the choice of interaction post IJV termination between partners. Practitioners will be encouraged to understand and plan post termination dynamics with their terminated IJV partner. Originality/value The paper undertakes examination of a practical business phenomena, i.e. interaction post termination between terminated IJV partners.


2021 ◽  
pp. 1069031X2110060
Author(s):  
Jason Lu Jin ◽  
Kevin Zheng Zhou

While the strategic marketing literature promotes ambidexterity as a critical innovation strategy that can enhance firm performance, its value in the international marketing context remains under-explored. Combining the ambidexterity and international marketing literatures, this study investigates how ambidexterity affects performance of the international joint ventures (IJVs) and how parent control asymmetry and cultural distance moderate the effects. Using polynomial analysis, this study simultaneously considers both the balance and intensity elements of ambidexterity and examines their effects on IJV performance in China. The authors argue that ambidexterity balance has a U-shaped effect on IJV performance, whereas ambidexterity intensity exerts an inverted U-shaped effect; such effects are further moderated by the unique features of IJVs—parent control asymmetry and cultural distance. With a dataset that combines survey and archival data on IJVs in China, the authors find strong empirical evidence for the hypotheses. These findings offer important advances to innovation research on IJVs.


2009 ◽  
Vol 35 (3) ◽  
pp. 805-832 ◽  
Author(s):  
Hong Ren ◽  
Barbara Gray ◽  
Kwangho Kim

This article presents an in-depth review and critique of previous research on international joint venture (IJV) performance over the past 10 years. In doing so, the authors tease out the most important conceptualizations of IJV performance, the dominant drivers of IJV performance, and the key links among all these variables. They propose a comprehensive model that relates drivers to IJV performance measures and also performance measures to each other over time to guide future research.


2017 ◽  
Vol 32 (7) ◽  
pp. 962-973 ◽  
Author(s):  
Tahir Ali ◽  
Saba Khalid

Purpose This study aims to investigate the relationship between trust and performance in international joint ventures (IJVs) with the moderating effects of the structural mechanisms from transaction cost approach. Design/methodology/approach Using web-survey, data are collected from 89 IJVs of Northern European firms in Asia, Europe and America. Empirical data are analyzed with structural equation modeling and estimates moderating effects of symmetric dependence, symmetric equity share and resource complementarity. Findings The findings offer some interesting insights for transaction cost and the social exchange theory. This study demonstrates that a symmetric equity share between IJV partners does not moderate the trust–performance relationship, while a symmetric dependence and resource complementarity between partners effect positively. Therefore, trust takes on greater importance in enhancing IJV performance under symmetric dependence and resource complementarity and symmetric equity share between IJV partners deprecates the importance of equity distribution. Practical implications A symmetric dependence prevents the deceit from either partner in trusting relationships. Further, a trustful relationship enhances IJV performance regardless of the equity share in IJVs. IJVs with asymmetric equity share can also be successful, provided that IJV partners develop inter-partner trust. Originality/value The extant research has not examined how the trust–performance relationship is contingent on structural mechanisms of IJVs that transaction cost economics deem necessary to prevent opportunistic behavior. Three structural mechanisms of symmetric dependence, symmetric equity share and resource complementarity moderate the trust–performance relationship in IJVs.


2021 ◽  
pp. 026540752110019
Author(s):  
Andy J. Merolla ◽  
Quinten Bernhold ◽  
Christina Peterson

Building on hope theory, this study demonstrates that state and trait hope are associated with daily interpersonal experiences. Multilevel modeling of daily diary data ( N = 127 adults) indicated that state hope—composed of the dual factors of pathways (i.e., the ability to devise routes toward goals) and agency (i.e., motivation to pursue devised routes)—was negatively associated with amount of daily interpersonal conflict, positively associated with constructive conflict management when conflict occurred, and negatively associated with daily challenges in maintaining relationships. These relationships were found largely at the within-person level. Further, and consistent with central tenets of hope theory, moderated multilevel models showed that within-person state pathways and agency thinking were more strongly associated with day quality on days when individuals experienced higher-than-usual levels of relational maintenance challenges. Finally, in an extension of hope theory, multilevel models showed that dispositional pathways and between-person state agency were positively linked to momentary feelings of connection as captured by experience sampling over a 7-day period. Overall, the findings contribute to the continued expansion of hope theory into the study of social and personal relationships.


2014 ◽  
Vol 18 (1) ◽  
pp. 75-91 ◽  
Author(s):  
Heeyoung Jang ◽  
Ilsang Ko

Purpose – The objective of this study is to identify the factors that affect CoP activation and performance variables obtainable through CoP activities, and to gain greater insight into their relationships and the mechanisms. In particular, this paper intends to illustrate the role of perceived risk factor for the loss of uniqueness of one's own knowledge in terms of their influence on CoP activities. Design/methodology/approach – In this study, the human behaviours were divided into online and offline CoP activities and adopted affirmative affect and social norm from the Triandis model. In addition, the paper considered perceived expectation, perceived risk, and organization support as independent variables. These would accelerate online and offline activities in the community of practice. The paper considered relationship commitment and individual performance in the context of performance evaluations via CoP activities. A structural equation model was developed with research variables and hypotheses. Findings – As the consequence of the empirical assessment of the variables influencing the on/offline activities of a CoP, social norm, perceived expectation, perceived risk, and organizational support showed significantly influential relationships with online activities, and affirmative affect, perceived expectation, and organizational support evidenced significantly influential relationships with offline activities. However, with regard to online CoP activities, affirmative affect was not shown to be significant. As to offline activities, perceived risk was not shown to be significantly influential, while it was determined to significantly influence online activities in a negative direction. Originality/value – The results of this study demonstrated that on/offline CoP activities were significantly influential in terms both of relationship commitment and individual performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yousong Wang ◽  
Fangfang Liu ◽  
Yangbing Zhang ◽  
Enqin Gong

Purpose This paper aims to reveal the role of conflict management in the process of trust development. Specifically, this study investigates how the salience of conflict varies with different conflict-handling behaviors and behavioral outcomes and how the variation of the salience of conflict influences the trust development between contracting parties. Design/methodology/approach A questionnaire survey was undertaken to collect data from 310 experienced project practitioners. Hierarchical regression analysis and bootstrapping with a structural equation model were mainly used to test the hypotheses. Findings This paper finds that the relational degree of conflict handling behaviors can influence the salience of conflict and furthermore to influence trust between contracting parties, with this relationship mediated by the behavioral outcomes; however, all these relationships are contingent on the stage where relational conflict handling behaviors are adopted and the specific type of outcomes the behaviors result in. Practical implications This study provides some specific directions for the practitioners to conduct relational conflict handling behaviors and generate positive outcomes to keep trust developing between contracting parties in conflictual situations. Originality/value This study contributes to the knowledge of inter-organizational trust development as well as conflict management, by investigating the relationship between conflict and trust in a direction, which is less examined and revealing the process of conflict management, where the conflict handling behaviors influence behavioral outcomes to further manage conflict, in trust development.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Madhavi Kapoor ◽  
Vijita Aggarwal

Purpose This study aims to investigate the relationship among knowledge transfer enablers, knowledge transfer process, absorptive capacity and innovation performance in the context of Indian international joint ventures (IJVs). These elements are woven with the thread of dynamic capabilities theory (DCT) into an integrated framework. Design/methodology/approach Data analysis is conducted on a quantitative survey of 196 IJVs with partial least squares structural equation modeling as the statistical technique. Findings Co-learning strategy, collaborative trust culture, information technology-based resources and systems and organizational structural design are found to be significant knowledge transfer enablers. Absorptive capacity has a complementary partial mediation effect on the positive relationship between knowledge transfer and innovation performance of Indian IJVs. Research limitations/implications The study has pioneered in explicating the criticality of IJV’s internal dynamics to cope with the global market dynamism in a much needed Indian context. Practitioners must focus on building dynamic capabilities in IJVs to make them sustainably competitive, as proposed and evaluated by this study. Further, IJV managers need to strategize their resources, routines and structure dynamically to foster knowledge transfer and innovativeness. Originality/value The comprehensive model on DCT offered by this study is rare to match in literature with a completely new context, which is the need of the hour.


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