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An event study of the effects of partner and location cultural differences in joint ventures

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  • Hanvanich, Sangphet
  • Miller, Stewart R.
  • Richards, Malika
  • Cavusgil, S. Tamar

Abstract

This study focuses on one of the most important aspects of domestic joint venture and international joint venture (IJV) formation: culture difference. The study adapts the Makino and Beamish (1998) ownership-structure classification of IJVs and empirically examines the effects of JV partner and JV location cultural differences. Using an event-study methodology, our results reveal the impact of cultural difference on shareholder value creation. The article discusses the implications of using cultural difference measures in international research.

Suggested Citation

  • Hanvanich, Sangphet & Miller, Stewart R. & Richards, Malika & Cavusgil, S. Tamar, 2003. "An event study of the effects of partner and location cultural differences in joint ventures," International Business Review, Elsevier, vol. 12(1), pages 1-16, February.
    • Handle: RePEc:eee:iburev:v:12:y:2003:i:1:p:1-16
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    References listed on IDEAS

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    1. Hanvanich, Sangphet & Richards, Malika & Miller, Stewart R. & Cavusgil, S. Tamer, 2005. "Technology and the effects of cultural differences and task relatedness: A study of shareholder value creation in domestic and international joint ventures," International Business Review, Elsevier, vol. 14(4), pages 397-414, August.
    2. Merchant, Hemant, 2012. "The characteristics and stock-market performance of international joint ventures located in three host-country groups: An extension and empirical validation," International Business Review, Elsevier, vol. 21(6), pages 1173-1189.
    3. Ogasavara, Mario Henrique & Hoshino, Yasuo, 2007. "The impact of ownership, internalization, and entry mode on Japanese subsidiaries' performance in Brazil," Japan and the World Economy, Elsevier, vol. 19(1), pages 1-25, January.
    4. Konara, Palitha & Mohr, Alex, 2023. "Cultural bridging and the performance of international joint ventures," International Business Review, Elsevier, vol. 32(4).
    5. Chiao, Yu-Ching & Yu, Chwo-Ming Joseph & Peng, Ju-Tzu Ann, 2009. "Partner nationality, market-focus and IJV performance: A contingent approach," Journal of World Business, Elsevier, vol. 44(3), pages 238-249, July.
    6. Pak, Yong Suhk & Ra, Wonchan & Park, Young-Ryeol, 2009. "Understanding IJV performance in a learning and conflict mediated context," International Business Review, Elsevier, vol. 18(5), pages 470-480, October.
    7. Christoffersen, Jeppe & Plenborg, Thomas & Robson, Matthew J., 2014. "Measures of strategic alliance performance, classified and assessed," International Business Review, Elsevier, vol. 23(3), pages 479-489.
    8. Rachel Xenia Chang & Mário Henrique Ogasavara, 2021. "The impact of institutional distance and experiential knowledge on the internationalization speed of Japanese MNEs," Asian Business & Management, Palgrave Macmillan, vol. 20(5), pages 549-582, November.

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