Instability and Failure in International Joint Ventures in Post-Socialist Societies: Power, Politics and Strategic Orientations

2011 ◽  
Vol 15 (4) ◽  
pp. 296-314 ◽  
Author(s):  
Anna Soulsby ◽  
Ed Clark
Keyword(s):  
Joint Ventures ◽  
Multinational Corporation ◽  
Empirical Support ◽  
International Joint Ventures ◽  
Power Politics ◽  
Strategic Orientations ◽  
International Joint ◽  
Local Parent

International business researchers have identified the tendency of international joint ventures (IJVs) to fail and recognized that explaining the process of failure can benefit from inductive qualitative research. This article offers a processual account of instability in and the dissolution of an IJV, taking the perspective of the local parent in an IJV with a powerful Western multinational corporation in order to understand more fully their experience of participating in the venture. The case study findings offer empirical support for an emergent theoretical framework that highlights the role of contextual factors and explores the internal process of dissolution and ‘failure’ as the socio-political enactment of parents' strategic orientations.

Unravelling the role of guanxi in the formation and management of international joint ventures – a systematic review of the literature

2021 ◽  
Vol 31 (1) ◽  
pp. 103-126
Author(s):  
Xiaoli Zhao ◽  
Pavel Castka
Keyword(s):  
Decision Making ◽  
Joint Ventures ◽  
International Joint Ventures ◽  
Control Mechanisms ◽  
Managerial Decision ◽  
Content Type ◽  
Institutional Void ◽  
International Joint ◽  
Business In China

Purpose The formation of international joint ventures (IJVs) is one of the prevalent approaches for Western companies to conduct business in China. Yet, doing business in China is difficult for many firms, partially because of the institutional voids that are created by weak formal institutions. The paper aims to focus on the role of guanxi (an informal institution and a company capability that fills such institutional void) in the formation and management of IJVs. Design/methodology/approach A systematic literature review on the role of guanxi in IJV formation and management is conducted based on papers published in top international business journals between 2005 and 2020 – in total, 47 papers are included in the review. Findings The findings of the study are presented in four themes, namely, the role of guanxi as social capital in IJV formation, the role of trust in guanxi-based IJVs, the role of control mechanisms in balancing high reliance on trust in guanxi-based IJVs and the role of guanxi in managing inconsistencies in the regulatory environment. The analysis also reveals that guanxi has a positive effect on the development of IJVs if control between the parent firms is well balanced; otherwise, guanxi can trigger opportunism and leads to failures. Practical implications The study unravels how guanxi leads to successful outcomes in IJV formation and management, which assist managers who operate IJVs with their decision-making. Originality/value To the best of the authors’ knowledge, no previous paper has critically analysed the literature on IJVs using a guanxi perspective at micro (personal), meso (business) and (macro) governmental levels. This approach allows for providing more nuanced view of the role of guanxi in the formation and management of IJVs and aligns more closely with managerial decision-making.

scholarly journals What Determines Innovative Performance of International Joint Ventures? Assessing the Effects of Foreign Managerial Control

2020 ◽  
Vol 12 (21) ◽  
pp. 8770 ◽  
Author(s):  
Kyuho Jin ◽  
Chulhyung Park ◽  
Jeonghwan Lee
Keyword(s):  
Joint Ventures ◽  
Negative Relationship ◽  
Empirical Support ◽  
International Joint Ventures ◽  
Local Market ◽  
Sustainable Competitive Advantage ◽  
Managerial Control ◽  
Innovative Performance ◽  
International Joint ◽  
Local Embeddedness

International joint ventures (IJVs) have long been considered a vibrant venue for innovation, one source of sustainable competitive advantage. Nonetheless, there is a paucity of research that seeks to understand what determines their innovative performance. We draw attention to and examine the control structure of IJVs as a determinant of innovation. Using the complementary lenses of local embeddedness, the liability of outsidership, and open innovation, we argue that foreign managerial control reduces IJV innovation and that equity ownership balance between foreign and local parent firms and affiliation of IJVs with local market business groups weaken this negative relationship. Using panel data of 48 IJVs in Korea during the periods between 2000 and 2016, we find empirical support for these arguments. This study contributes to the literature by extending our understanding of how to design IJVs for enhancing innovative output and consequently improving their sustainability.

Demystifying the role of internal dynamics in the path of innovative competitiveness: a serial mediation model of international joint ventures

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vijita Aggarwal ◽  
Madhavi Kapoor
Keyword(s):  
Knowledge Transfer ◽  
Absorptive Capacity ◽  
Joint Ventures ◽  
International Joint Ventures ◽  
Equation Modeling ◽  
Internal Dynamics ◽  
Content Type ◽  
Organizational Competencies ◽  
International Joint

PurposeThe study proposes and evaluates a parsimonious research framework by integrating the major strategic theories related to an international firm's internal dynamics. This research's essence lies in the proposition that organizational competencies, knowledge resources and processes, absorptive capacity and innovativeness form the underlying base for sustainable competitive advantage in this dynamic world.Design/methodology/approachA cross-sectional explanatory research design is adopted. Using the quantitative data obtained from the sample of Indian international joint ventures (IJVs), partial least squares structural equation modeling (PLS-SEM) is deployed to confirm the proposed relationships among the research constructs. Finally, qualitative interviews helped in triangulating the primary survey's results.FindingsA well-established relationship between knowledge transfer and innovation is negated by the Indian IJVs' data, which is delved deeper with cross-industry qualitative analysis. The novel hierarchical model with multiple mediations has nurtured quite exciting results for the business world with some significant theoretical and managerial implications.Research limitations/implicationsThis study has investigated the nexus between multi-dimensional organizational competencies, knowledge transfer, absorptive capacity and venture innovativeness in the context of Indian IJVs. It has emphasized the role of internal dynamics in cross-cultural joint ventures to attain sustainable competitiveness through strategic and technological efficiency.Originality/valueThe study has addressed the specific research gap of under-investigation of dynamic capabilities and sustainable competitiveness in international joint ventures. It has investigated a complex model of multiple mediations, yielding interesting quantitative results with qualitative insights; which is rare to match in literature.

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