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Trust, Organizational Controls, Knowledge Acquisition from the Foreign Parents, and Performance in Vietnamese International Joint Ventures

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  • Marjorie A. Lyles
  • Le dang Doanh
  • Jeffrey Q. Barden
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    Abstract

    Successful adaptation in strategic alliances "calls for a delicate balance between the twin virtues of reliability and flexibility" [Parkhe 1998]. On one hand, the joint venture must be flexible enough to respond to the uncertainties of competitive business environments because it is not feasible to plan for every possible contingency. Yet, on the other hand, unfettered flexibility invites dysfunctional behavior, such as opportunism and complacency. This delicate balance accompanies a parallel balance between trust and control of the joint venture. The primary goal of this study is to empirically examine this relationship in the context of Vietnamese international joint ventures (IJVs) by building on the model of knowledge acquisition and performance in IJVs established by Lyles and Salk [1996]. This study makes three major contributions to the literature. First it confirms several findings of the original Lyles and Salk study [1996]. Second, we strengthen Lyles and Salk's original model by incorporating multiple measures of both interorganizational trust and control as independent variables. Finally, this study represents one of the first in-depth examinations of business in the emerging Vietnamese economy.

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    File URL: http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp329.pdf
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    Bibliographic Info

    Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 329.

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    Length: pages
    Date of creation: 01 Jun 2000
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    Handle: RePEc:wdi:papers:2000-329

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    1. George Huber, 1982. "Organizational Information Systems: Determinants of Their Performance and Behavior," Management Science, INFORMS, INFORMS, vol. 28(2), pages 138-155, February.
    2. Paul W Beamish & John C Banks, 1987. "Equity Joint Ventures and Theory of the Multinational Enterprise," Journal of International Business Studies, Palgrave Macmillan, vol. 18(2), pages 1-16, June.
    3. Marjorie A Lyles & Jane E Salk, 1996. "Knowledge Acquisition from Foreign Parents in International Joint Ventures: An Empirical Examination in the Hungarian Context," Journal of International Business Studies, Palgrave Macmillan, vol. 27(4), pages 877-903, December.
    4. Jean L Johnson & John B Cullen & Tomoaki Sakano & Hideyuki Takenouchi, 1996. "Setting the Stage for Trust and Strategic Integration in Japanese-U.S. Cooperative Alliances," Journal of International Business Studies, Palgrave Macmillan, vol. 27(4), pages 981-1004, December.
    5. J Michael Geringer & Louis Hebert, 1989. "Control and Performance of International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan, vol. 20(2), pages 235-254, June.
    6. Preet S Aulakh & Masaaki Kotabe & Arvind Sahay, 1996. "Trust and Performance in Cross-Border Marketing Partnerships: A Behavioral Approach," Journal of International Business Studies, Palgrave Macmillan, vol. 27(4), pages 1005-1032, December.
    7. Susumu Ueno & Uma Sekaran, 1992. "The Influence of Culture on Budget Control Practices in the USA and Japan: An Empirical Study," Journal of International Business Studies, Palgrave Macmillan, vol. 23(4), pages 659-674, December.
    8. Preet S Aulakh & Masaaki Kotabe & Arvind Sahay, 1996. "Trust and Performance in Cross-Border Marketing Partnerships: A Behavioral Approach," Journal of International Business Studies, Palgrave Macmillan, vol. 27(5), pages 1005-1032, December.
    9. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, INFORMS, vol. 35(12), pages 1504-1511, December.
    10. William G Egelhoff, 1991. "Information-Processing Theory and the Multinational Enterprise," Journal of International Business Studies, Palgrave Macmillan, vol. 22(3), pages 341-368, September.
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    Cited by:
    1. Iavor Marangozov, 2005. "Characteristics of the International Joint Ventures in Bulgaria (1989-2003)," Industrial Organization, EconWPA 0509003, EconWPA.

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