IDEAS home Printed from https://ideas.repec.org/a/eee/iburev/v17y2008i5p559-573.html
   My bibliography  Save this article

Antecedents and consequences of international joint venture partnerships: A social exchange perspective

Author

Listed:
  • Kwon, Yung-Chul

Abstract

This paper assessed the antecedents and consequences of IJV partnerships on the basis of the social exchange paradigm. Based on the analysis of 94 joint ventures formed between Korean firms as a local partner and the US, European, and Japanese firms as a foreign partner, we ascertained the key structural and social components of trust-commitment partnerships and their contributions to IJV effectiveness. In addition, the trust-commitment partnerships were shown to be higher in joint ventures formed between Korean and Japanese companies than in those formed between Korean and Western (i.e. US, Europe) companies. This result raises the issue of a cultural influence on the IJV partnerships. Contrary to expectations, however, the competitive relationship between partners was shown not to exert a significant negative influence on both the trust-commitment partnerships and the effectiveness of IJVs. This result provides us with a meaningful implication to the selection of competitors as IJV partners.

Suggested Citation

  • Kwon, Yung-Chul, 2008. "Antecedents and consequences of international joint venture partnerships: A social exchange perspective," International Business Review, Elsevier, vol. 17(5), pages 559-573, October.
  • Handle: RePEc:eee:iburev:v:17:y:2008:i:5:p:559-573
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969593108000863
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John B Cullen & Jean L Johnson & Tomoaki Sakano, 1995. "Japanese and Local Partners Commitment to IJVs: Psychological Consequences of Outcomes and Investments in the IJV Relationships," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(1), pages 91-115, March.
    2. Berdrow, Iris & Lane, Henry W., 2003. "International joint ventures: creating value through successful knowledge management," Journal of World Business, Elsevier, vol. 38(1), pages 15-30, February.
    3. Anoop Madhok, 2006. "How much does ownership really matter? Equity and trust relations in joint venture relationships," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(1), pages 4-11, January.
    4. Demirbag, Mehmet & Mirza, Hafiz, 2000. "Factors affecting international joint venture success: an empirical analysis of foreign-local partner relationships and performance in joint ventures in Turkey," International Business Review, Elsevier, vol. 9(1), pages 1-35, February.
    5. Fey, Carl F. & Beamish, Paul W., 2000. "Joint venture conflict: the case of Russian international joint ventures," International Business Review, Elsevier, vol. 9(2), pages 139-162, April.
    6. Michael W Morris & Katherine Y Williams & Kwok Leung & Richard Larrick & M Teresa Mendoza & Deepti Bhatnagar & Jianfeng Li & Mari Kondo & Jin-Lian Luo & Jun-Chen Hu, 1998. "Conflict Management Style: Accounting for Cross-National Differences," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(4), pages 729-747, December.
    7. Walters, Bruce A. & Peters, Steve & Dess, Gregory G., 1994. "Strategic alliances and joint ventures: Making them work," Business Horizons, Elsevier, vol. 37(4), pages 5-10.
    8. Paul W Beamish & John C Banks, 1987. "Equity Joint Ventures and Theory of the Multinational Enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 18(2), pages 1-16, June.
    9. Nielsen, Bo Bernhard, 2007. "Determining international strategic alliance performance: A multidimensional approach," International Business Review, Elsevier, vol. 16(3), pages 337-361, June.
    10. Xiaohua Lin & Richard Germain, 1998. "Sustaining Satisfactory Joint Venture Relationships: The Role of Conflict Resolution Strategy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 179-196, March.
    11. Seung Ho Park & Michael V. Russo, 1996. "When Competition Eclipses Cooperation: An Event History Analysis of Joint Venture Failure," Management Science, INFORMS, vol. 42(6), pages 875-890, June.
    12. Ramaseshan, B. & Loo, Puay Choon, 1998. "Factors affecting a partner's perceived effectiveness of strategic business alliance: some Singaporean evidence," International Business Review, Elsevier, vol. 7(4), pages 443-458, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mallin, Michael L. & Asree, Susita & Koh, Anthony C. & Hu, Michael Y., 2010. "Antecedents to managerial trust and sales control in Malaysian salesforce," International Business Review, Elsevier, vol. 19(3), pages 292-305, June.
    2. Khalid, Saba & Ali, Tahir, 2017. "An integrated perspective of social exchange theory and transaction cost approach on the antecedents of trust in international joint ventures," International Business Review, Elsevier, vol. 26(3), pages 491-501.
    3. Hsin Hsin Chang & Yao-Chuan Tsai & Chen-Su Fu & Shu-Hui Chen & Yao Peng, 2016. "Exploring the antecedents and consequences of technology and knowledge integration mechanisms in the context of NPD," Information Systems Frontiers, Springer, vol. 18(6), pages 1165-1189, December.
    4. Costa e Silva, Susana & Bradley, Frank & Sousa, Carlos M.P., 2012. "Empirical test of the trust–performance link in an international alliances context," International Business Review, Elsevier, vol. 21(2), pages 293-306.
    5. Park, Jeong-Yang & Harris, Simon, 2014. "Microfoundations for learning within international joint ventures," International Business Review, Elsevier, vol. 23(3), pages 490-503.
    6. Owens, Martin & Ramsey, Elaine & Loane, Sharon, 2018. "Resolving post-formation challenges in shared IJVs: The impact of shared IJV structure on inter-partner relationships," International Business Review, Elsevier, vol. 27(3), pages 584-593.
    7. Yao, Zheng & Yang, Zhi & Fisher, Gregory J. & Ma, Chaoqun & (Er) Fang, Eric, 2013. "Knowledge complementarity, knowledge absorption effectiveness, and new product performance: The exploration of international joint ventures in China," International Business Review, Elsevier, vol. 22(1), pages 216-227.
    8. Wong, Alfred & Wei, Lu & Yang, Jie & Tjosvold, Dean, 2017. "Productivity and participation values for cooperative goals to limit free riding and promote performance in international joint ventures," Journal of World Business, Elsevier, vol. 52(6), pages 819-830.
    9. Matthias Meier & Martina Lütkewitte & Thomas Mellewigt & Carolin Decker, 2016. "How managers can build trust in strategic alliances: a meta-analysis on the central trust-building mechanisms," Journal of Business Economics, Springer, vol. 86(3), pages 229-257, April.
    10. Linda H. Y. Hsieh & Suzana B. Rodrigues, 2014. "Revisiting the Trustworthiness–Performance–Governance Nexus in International Joint Ventures," Management International Review, Springer, vol. 54(5), pages 675-705, October.
    11. Zheng Xiaosong & Zhang Jinming, 2011. "Factors Influencing International Joint Venture Performance in China," Annals - Economic and Administrative Series -, Faculty of Business and Administration, University of Bucharest, vol. 5(1), pages 167-184, December.
    12. Kwok, Francis & Sharma, Piyush & Gaur, Sanjaya Singh & Ueno, Akiko, 2019. "Interactive effects of information exchange, relationship capital and environmental uncertainty on international joint venture (IJV) performance: An emerging markets perspective," International Business Review, Elsevier, vol. 28(5), pages 1-1.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:17:y:2008:i:5:p:559-573. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Haili He). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.