Interdependency in joint ventures: the relationship between dependence asymmetry and performance

2001 ◽  
Vol 1 (2) ◽  
pp. 101-110 ◽  
Author(s):  
R. Kemp ◽  
P. Ghauri
Keyword(s):  
Joint Ventures ◽  
Joint Venture ◽  
Potential Threat ◽  
Dependence Asymmetry ◽  
Management Literature ◽  
And Performance ◽  
The Relationship

This paper reports the results of a survey on joint venture collaborations. It focuses on the relations between the level and intensity of conflict, trust and norms of exchange, and ultimately the performance of a joint venture, in case of dependency asymmetry between the partners. In management literature, the relative dependency position of the partners is often indicated as an important antecedent of conflict. In a survey of 78 Dutch companies in joint ventures, we investigated these relationships in depth. Contrary to expectations, we did not find a relationship between the relative dependency of the partners, conflict and performance. The potential threat of conflict seems to be mediated by the norms of exchange shared by the partners. We therefore tentatively conclude that the best way to manage the dependency position in a JV might be to invest time and effort in discussing the norms of exchange up-front, which will help the partners develop a trusting relationship..

Control, Conflict, and Performance: A Study of U.S.-Chinese Joint Ventures

1997 ◽  
Vol 5 (3) ◽  
pp. 31-45 ◽  
Author(s):  
Daniel Z. Ding
Keyword(s):  
Empirical Evidence ◽  
Joint Ventures ◽  
Questionnaire Survey ◽  
Joint Venture ◽  
Positive Impact ◽  
Managerial Control ◽  
Foreign Partner ◽  
Venture Performance ◽  
General Managers ◽  
And Performance

This study was designed to test empirically the linkages between control, conflict, and performance using a sample of U.S.-Chinese joint ventures established in China during the period of 1979–1989. Data were gathered through a questionnaire survey among U.S. managers and personal interviews with both U.S. and Chinese general managers in the selected joint ventures. Results showed that dominant managerial control exercised by the foreign partner had a positive impact on the perceived joint venture performance. The study identified major areas in which conflict between joint venture partners occurred. Empirical evidence was found that conflict between joint venture partners significantly hindered joint venture performance.

scholarly journals The Technological Progress of the Fuel Consumption Rate for Passenger Vehicles in China: 2009–2016

Energies ◽  
2019 ◽  
Vol 12 (12) ◽  
pp. 2384 ◽  
Author(s):  
Jihu Zheng ◽  
Rujie Yu ◽  
Yong Liu ◽  
Yuhong Zou ◽  
Dongchang Zhao
Keyword(s):  
Fuel Consumption ◽  
Technological Progress ◽  
Consumption Rate ◽  
Joint Venture ◽  
Passenger Vehicles ◽  
Fuel Consumption Rate ◽  
The Difference ◽  
And Performance ◽  
The Relationship ◽  
Better Than

China has set stringent fuel consumption rate (FCR) targets to address the serious environmental and energy security problems caused by vehicles. Estimating the technological progress and tradeoffs between FCR and vehicle attributes is important for assessing the viability of meeting future targets. In this paper, we explored the relationship between vehicle FCR and other attributes using a regression model with data from 2009–2016. We also quantified the difference in the tradeoff between local and joint venture brands. The result showed that from 2009 to 2016, if power and curb mass were held constant, 2.3% and 2.9% annual technological progress should have been achieved for local and joint venture brands, respectively. The effectiveness of fuel-efficient technologies for joint venture brands is generally better than that of local brands. Impacts of other attributes on FCR were also assessed. The joint venture brands made more technological progress with FCR improvement than that of local brands. Even if 100% of technological progress (assume the technological progress in the future were the same as that of 2009–2016) investment were used to improve actual FCR after 2016, it would be difficult to meet 2020 target. Accelerating the adoption of fuel-efficient technologies, and controlling weight and performance, are both needed to achieve the 2020 and 2025 targets.

A Configurational Analysis of International Joint Ventures

2002 ◽  
Vol 23 (5) ◽  
pp. 781-815 ◽  
Author(s):  
John Child
Keyword(s):  
Joint Ventures ◽  
International Joint Ventures ◽  
Configurational Analysis ◽  
Alternative Approach ◽  
International Joint ◽  
And Performance ◽  
And Control ◽  
The Relationship ◽  
Parent Companies ◽  
Variance Approach

A stream of research has focused on the ownership shares that partner companies take in international joint ventures [IJVs] and the leverage this may provide for control and performance. This research has normally adopted a `variance' approach, which examines `independent' variables as potential predictors of the focal phenomenon. The variance approach has yielded reasonably consistent results for the relationship between IJV ownership and control, but not in respect of performance. In searching for the optimum predictive model for whole samples, the variance approach risks overlooking inter-case nuances that may result from somewhat different configurations of variables. An alternative approach seeks to explore how and why variables configure together in different combinations. This paper draws on a study of 20 Sino-UK IJVs and their parent companies. It proceeds from a conventional variance analysis to identify different IV configurations. These configurations can be understood in the light of each IV's formative context, and they relate to performance in different ways. Propositions deriving from the study are offered as guidelines for further research.

scholarly journals Professional Culture Compatibility and Performance in International  Joint Ventures: A Chinese Experience

2021 ◽  
Author(s):  
◽  
Xiangfu Gan
Keyword(s):  
Joint Ventures ◽  
Professional Culture ◽  
International Joint Ventures ◽  
Alliance Performance ◽  
International Alliance ◽  
International Joint ◽  
Overall Performance ◽  
And Performance ◽  
The Relationship ◽  
Diverse Cultures

<p>This research was influenced by Sirmon & Lane's (2004) model of cultural differences and international alliance performance. Sirmon & Lane's model introduced the concept and importance of partners' professional culture compatibility in international alliances. However, to date, their model lacks empirical testing. This research therefore took the study further by empirically investigating the influence of professional culture compatibility between partners and international alliance performance by using a selected sample of Sino-Foreign joint ventures in China. The findings overall support Sirmon & Lane's (2004) model that (1) Partners from similar national cultures experience lesser differences in their professional cultures as opposed to partners from diverse cultures; and, (2) Professional culture differences between partners negatively influence the overall performance of international joint ventures. However, this research also argues that the relationships shown in Sirmon & Lane's (2004) model are not as straightforward as was previously proposed, and the findings suggest several additional factors that contribute to the relationship between partner professional culture compatibility and international alliance performance.</p>

Critical success factors for partnerships in the oil and gas contracting industry

2013 ◽  
Vol 53 (2) ◽  
pp. 462
Author(s):  
Rick Robinson ◽  
Robert Powers
Keyword(s):  
Joint Ventures ◽  
Success Factors ◽  
Joint Venture ◽  
Oil And Gas ◽  
Critical Success ◽  
History Of ◽  
Pros And Cons ◽  
Individual Entity ◽  
The Relationship

The advent of mega LNG projects in Australia has encouraged the Australian contracting industry to establish partnerships with local or international peers to bolster capability and take advantage of larger work scopes to handle the contracting risks. The types of partnerships generally fall into three broad categories: Unincorporated joint ventures formed between partner companies, specifically to win and deliver a project. Each partner retains its individual entity and the relationship is finalised once the project is delivered. Incorporated joint ventures that take a long-term view to the partnership. The incorporated entity focuses on winning and delivering work on multiple projects, without a specific end date. Client contractor integration is the aligned relationships between clients and contractors to achieve delivery of optimal outcomes, thereby achieving mutual benefits. Clough’s history in partnering dates back to 1957, when Harold Clough started the company’s first joint venture with Christiani and Nielsen of Denmark. During a 55-year period, the company has delivered more than 130 projects in joint-venture or client contractor-integration arrangements. This rich history of partnering is used to explore the pros and cons of different partnering arrangements through a series of partnership case studies. Despite the relationship differences, there is a number of critical factors for successful partnerships, with the ultimate goal of adding value to the owner’s project. These factors, including focal interface points, financial and project management systems, and HSE unity and support, are explored using a case study about the BAM Clough Joint Venture, Clough’s most successful long-term partnership, which has been in place since 1964.

scholarly journals Professional Culture Compatibility and Performance in International  Joint Ventures: A Chinese Experience

2021 ◽  
Author(s):  
◽  
Xiangfu Gan
Keyword(s):  
Joint Ventures ◽  
Professional Culture ◽  
International Joint Ventures ◽  
Alliance Performance ◽  
International Alliance ◽  
International Joint ◽  
Overall Performance ◽  
And Performance ◽  
The Relationship ◽  
Diverse Cultures

<p>This research was influenced by Sirmon & Lane's (2004) model of cultural differences and international alliance performance. Sirmon & Lane's model introduced the concept and importance of partners' professional culture compatibility in international alliances. However, to date, their model lacks empirical testing. This research therefore took the study further by empirically investigating the influence of professional culture compatibility between partners and international alliance performance by using a selected sample of Sino-Foreign joint ventures in China. The findings overall support Sirmon & Lane's (2004) model that (1) Partners from similar national cultures experience lesser differences in their professional cultures as opposed to partners from diverse cultures; and, (2) Professional culture differences between partners negatively influence the overall performance of international joint ventures. However, this research also argues that the relationships shown in Sirmon & Lane's (2004) model are not as straightforward as was previously proposed, and the findings suggest several additional factors that contribute to the relationship between partner professional culture compatibility and international alliance performance.</p>

The Characteristics of Joint Ventures in the People's Republic of China

1993 ◽  
Vol 1 (2) ◽  
pp. 29-48 ◽  
Author(s):  
Paul W. Beamish
Keyword(s):  
Joint Ventures ◽  
Joint Venture ◽  
People’S Republic Of China ◽  
Design Management ◽  
People's Republic Of China ◽  
Foreign Partner ◽  
Republic Of China ◽  
Partner Satisfaction ◽  
And Performance ◽  
Set Up

This paper compares the characteristics of international equity joint ventures in the People's Republic of China (PRC) with joint ventures in developing country market economies. The characteristics of Sino-foreign joint ventures were derived from twelve studies published since 1986, including the author's new sample. Twelve joint venture characteristics are reviewed along dimensions of design, management and performance. Joint ventures in PRC are frequently used, created due to government pressure and with government partners, and often formed with partners from ethnically related countries. Further, many intended joint ventures are never implemented, and those that are implemented have often been set up for a predetermined duration. The foreign partner most commonly has a minority equity position, and those who have used split control have seen stronger performance. Overall joint venture stability has been high, but is expected to decline, and foreign partner satisfaction with performance is low.

Sources and Management of Conflict: The Case of Saudi-U.S. Joint Ventures

1994 ◽  
Vol 2 (3) ◽  
pp. 61-82 ◽  
Author(s):  
Uğur Yavaş ◽  
Doğan Eroğlu ◽  
Sevgin Eroğlu
Keyword(s):  
Developing Countries ◽  
Saudi Arabia ◽  
Conflict Management ◽  
Multinational Corporations ◽  
Joint Ventures ◽  
Joint Venture ◽  
Developed Countries ◽  
Point Of View ◽  
Dynamic Approach ◽  
And Performance

Joint ventures predominate in business formats used by multinational corporations in developing countries. It is believed that joint ventures in these countries suffer more conflicts and performance problems than joint ventures in developed countries. However, there is little empirical research into understanding the nature of joint venture problems in less developed countries. Furthermore, what little research exists examines the issue from the perspective of the parent company at the expense of the local partner's point of view. The study reported here is intended to fill this void. Specifically, the study examines severity of various conflicts in Saudi-U.S. joint ventures operating in Saudi Arabia from the perspective of Saudi partners. Three critical sources of conflict are identified and analyzed in detail. The discussion concludes by recommending a dynamic approach to conflict management with a special emphasis on developing communication capabilities.

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