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Wielding a double-edged sword? JV investment geographic diversity and parent's innovation

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  • Chih-Hsing Sam Liu

    (National Open University)

  • Jun-You Lin

    (National Open University)

  • Sheng-Fang Chou

    (National Open University)

Abstract

With the growing importance of international efforts, joint ventures (JVs) have received increasing attention from academics and practitioners. Drawing on the JV literature, this study asserts that a parent company’s JV investment geographic diversity is critical to understanding global investment diversity and a firm’s subsequent innovativeness. From an analysis of 472 parent companies for a 10-year period and 2734 firm-year observations, the study identifies an inverse U-shaped relationship between JV investment geographic diversity and a parent company’s innovativeness. The moderating roles of JV experience and available slack are found to strengthen such relationships. These findings support our predictions.

Suggested Citation

  • Chih-Hsing Sam Liu & Jun-You Lin & Sheng-Fang Chou, 2022. "Wielding a double-edged sword? JV investment geographic diversity and parent's innovation," Review of Managerial Science, Springer, vol. 16(6), pages 1783-1816, August.
    • Handle: RePEc:spr:rvmgts:v:16:y:2022:i:6:d:10.1007_s11846-021-00493-6
    DOI: 10.1007/s11846-021-00493-6
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