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Partner nationality, market-focus and IJV performance: A contingent approach

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  • Chiao, Yu-Ching
  • Yu, Chwo-Ming Joseph
  • Peng, Ju-Tzu Ann
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    Abstract

    This study examines how Taiwanese firms engaging in various types of international joint ventures (IJVs) have performed in China, and how different types of market-focus affect IJVs' performance. Based on the IJV classification scheme suggested by [Makino S., & Beamish P. W. (1998). Performance and survival of joint ventures with non-conventional ownership structures. Journal of International Business Studies, 29(4): 797-818], this study outlines and examines three categories of IJVs, according to partner nationality: Taiwan-Taiwan (T-T) JVs, Taiwan-Local (T-L) (China) JVs, and Taiwan-Foreign (T-F) (third-country) JVs. We propose two hypotheses, with associated sub-hypotheses, to examine the major effects of partner nationality on performance, as well as the moderating effects of local market-focus on the relationship between partner nationality and performance. Through the analysis of 236 Taiwanese JVs in China, we find that (1) T-L JVs perform better than T-T JVs and T-F JVs; (2) T-L JVs focusing on the local market do not perform better than those focusing on foreign markets; and (3) T-F JVs focusing on foreign markets perform better than those focusing on the local market.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 44 (2009)
    Issue (Month): 3 (July)
    Pages: 238-249

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    Handle: RePEc:eee:worbus:v:44:y:2009:i:3:p:238-249

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    Related research

    Keywords: International joint ventures Performance Local market orientation Access to local markets Cultural distance;

    References

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    Cited by:
    1. Chung, Chris Changwha & Beamish, Paul W., 2012. "Multi-party international joint ventures: Multiple post-formation change processes," Journal of World Business, Elsevier, Elsevier, vol. 47(4), pages 648-663.

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