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The effect of trust on international joint venture performance in China

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  • Ng, Paul Wai-Kit
  • Lau, Chung-Ming
  • Nyaw, Mee-Kau

Abstract

The role of trust between the parent companies of international joint ventures (IJVs) is re-examined, and it is suggested that trust between parents is not only a major predictor of the achievement of financial and non-financial goals by IJVs as reported in the literature, but also moderates the relationship between IJV performance and certain contextual factors. Based on the responses of senior executives of IJVs and their parent companies in China, it is confirmed that trust influences IJV performance. The moderating effects of trust on the relationships between IJV performance and local reliance and the experience of executives were confirmed for the senior executive sample, but the moderating effect of cultural distance was not consistent between the firm-level and country-level measures. There was no significant result regarding these moderating relationships for the parent sample, except local reliance.

Suggested Citation

  • Ng, Paul Wai-Kit & Lau, Chung-Ming & Nyaw, Mee-Kau, 2007. "The effect of trust on international joint venture performance in China," Journal of International Management, Elsevier, vol. 13(4), pages 430-448, December.
  • Handle: RePEc:eee:intman:v:13:y:2007:i:4:p:430-448
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    References listed on IDEAS

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    Cited by:

    1. Camara, A. & Cheriet, F. & Fort, F., 2013. "Comment mesurer la performance des alliances stratégiques internationales ? Application aux industries agroalimentaires en Afrique de l’Ouest," Working Papers MOISA 201307, UMR MOISA : Marchés, Organisations, Institutions et Stratégies d'Acteurs : CIHEAM-IAMM, CIRAD, INRA, Montpellier SupAgro - Montpellier, France.
    2. Abdoulaye Camara & Foued Cheriet & Fatiha Fort, 2017. "Comment mesurer la performance des alliances stratégiques internationales ? Application aux industries agroalimentaires en Afrique de l’Ouest," Working Papers hal-01594280, HAL.
    3. Victor Oltra & Jaime Bonache & Chris Brewster, 2013. "A New Framework for Understanding Inequalities Between Expatriates and Host Country Nationals," Journal of Business Ethics, Springer, vol. 115(2), pages 291-310, June.
    4. Lai, Christine & Singh, Barjinder & Alshwer, Abdullah A. & Shaffer, Margaret A., 2014. "Building and Leveraging Interpersonal Trust Within and Across MNE Subsidiaries: A Social Exchange Perspective," Journal of International Management, Elsevier, vol. 20(3), pages 312-326.
    5. 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.

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