IDEAS home Printed from https://ideas.repec.org/a/kap/asiapa/v32y2015i4p1039-1064.html
   My bibliography  Save this article

Partner resource asymmetry and IJV survival

Author

Listed:
  • Jane Lu
  • Xufei Ma

Abstract

Drawing on the resource-based view (RBV) and learning perspective in the context of international joint ventures (IJVs), we attend to equivocal results regarding the relationship between partner resource asymmetry and IJV survival by examining different types of resource asymmetry (property-based versus knowledge-based) and by considering the interplay between resource asymmetry and ownership strategy. In a sample of 905 Japanese IJVs worldwide, we found that IJV partners’ industry knowledge asymmetry had a negative effect on an IJV’s survival likelihood. However, this negative effect could be reduced by the level of equity controlled by the partner who had more industry knowledge over the other partner. Our findings highlight the importance to consider the nature of resources and ownership strategy simultaneously in structuring IJVs. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Jane Lu & Xufei Ma, 2015. "Partner resource asymmetry and IJV survival," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 1039-1064, December.
    • Handle: RePEc:kap:asiapa:v:32:y:2015:i:4:p:1039-1064
    DOI: 10.1007/s10490-015-9433-0
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10490-015-9433-0
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10490-015-9433-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Tarun Khanna, 1998. "The Scope of Alliances," Organization Science, INFORMS, vol. 9(3), pages 340-355, June.
    2. Michael Hitt & M. Tina Dacin & Edward Levitas & Jean-Luc Arregle & Anca Borza, 2000. "Partner Selection in Emerging and Developed Market Contexts : Resource-Based and Organizational Learning Perspectives," Post-Print hal-02276706, HAL.
    3. Shige Makino & Andrew Delios, 1996. "Local Knowledge Transfer and Performance: Implications for Alliance Formation in Asia," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(4), pages 905-927, December.
    4. Hans Mjoen & Stephen Tallman, 1997. "Control and Performance in International Joint Ventures," Organization Science, INFORMS, vol. 8(3), pages 257-274, June.
    5. Michael Song & Cornelia Droge & Sangphet Hanvanich & Roger Calantone, 2005. "Marketing and technology resource complementarity: an analysis of their interaction effect in two environmental contexts," Strategic Management Journal, Wiley Blackwell, vol. 26(3), pages 259-276, March.
    6. Kathleen M. Eisenhardt & Claudia Bird Schoonhoven, 1996. "Resource-based View of Strategic Alliance Formation: Strategic and Social Effects in Entrepreneurial Firms," Organization Science, INFORMS, vol. 7(2), pages 136-150, April.
    7. Oxley, Joanne E., 1999. "Institutional environment and the mechanisms of governance: the impact of intellectual property protection on the structure of inter-firm alliances," Journal of Economic Behavior & Organization, Elsevier, vol. 38(3), pages 283-309, March.
    8. Charles Dhanaraj & Paul W. Beamish, 2004. "Effect of equity ownership on the survival of international joint ventures," Strategic Management Journal, Wiley Blackwell, vol. 25(3), pages 295-305, March.
    9. Argote, Linda & Ingram, Paul, 2000. "Knowledge Transfer: A Basis for Competitive Advantage in Firms," Organizational Behavior and Human Decision Processes, Elsevier, vol. 82(1), pages 150-169, May.
    10. Robert C. Hill & Don Hellriegel, 1994. "Critical Contingencies in Joint Venture Management: Some Lessons from Managers," Organization Science, INFORMS, vol. 5(4), pages 594-607, November.
    11. Tailan Chi, 1994. "Trading in strategic resources: Necessary conditions, transaction cost problems, and choice of exchange structure," Strategic Management Journal, Wiley Blackwell, vol. 15(4), pages 271-290, May.
    12. Wu Zhan & Roger Chen & M. Erramilli & Duc Nguyen, 2009. "Acquisition of organizational capabilities and competitive advantage of IJVs in transition economies: The case of Vietnam," Asia Pacific Journal of Management, Springer, vol. 26(2), pages 285-308, June.
    13. Andrew C. Inkpen, 2000. "Learning Through Joint Ventures: A Framework Of Knowledge Acquisition," Journal of Management Studies, Wiley Blackwell, vol. 37(7), pages 1019-1044, November.
    14. J Michael Geringer & Louis Hebert, 1991. "Measuring Performance of International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(2), pages 249-263, June.
    15. George P. Huber, 1991. "Organizational Learning: The Contributing Processes and the Literatures," Organization Science, INFORMS, vol. 2(1), pages 88-115, February.
    16. Chang-Bum Choi & Paul Beamish, 2013. "Resource complementarity and international joint venture performance in Korea," Asia Pacific Journal of Management, Springer, vol. 30(2), pages 561-576, June.
    17. Jean-François Hennart & Dong-Jae Kim & Ming Zeng, 1998. "The Impact of Joint Venture Status on the Longevity of Japanese Stakes in U.S. Manufacturing Affiliates," Organization Science, INFORMS, vol. 9(3), pages 382-395, June.
    18. Child, John & Yan, Yanni, 1999. "Investment and control in international joint ventures: the case of China," Journal of World Business, Elsevier, vol. 34(1), pages 3-15, April.
    19. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 411-432, September.
    20. Bernard L Simonin, 1999. "Transfer of Marketing Know-How in International Strategic Alliances: An Empirical Investigation of the Role and Antecedents of Knowledge Ambiguity," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(3), pages 463-490, September.
    21. Akie Iriyama & Weilei Shi & John Prescott, 2014. "Frequency and directional reversal of equity ownership change in international joint ventures," Asia Pacific Journal of Management, Springer, vol. 31(1), pages 215-243, March.
    22. Shige Makino & Paul W Beamish, 1998. "Performance and Survival of Joint Ventures with Non-Conventional Ownership Structures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(4), pages 797-818, December.
    23. Arvind Parkhe, 1991. "Interfirm Diversity, Organizational Learning, and Longevity in Global Strategic Alliances," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(4), pages 579-601, December.
    24. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    25. Chang-Bum Choi & Paul W Beamish, 2004. "Split management control and international joint venture performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(3), pages 201-215, May.
    26. John H Dunning, 1995. "Reappraising the Eclectic Paradigm in an Age of Alliance Capitalism," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(3), pages 461-491, September.
    27. N. Venkatraman & Lawrence Loh & Jeongsuk Koh, 1994. "The Adoption of Corporate Governance Mechanisms: A Test of Competing Diffusion Models," Management Science, INFORMS, vol. 40(4), pages 496-507, April.
    28. Michael Hitt & M. Tina Dacin & Edward Levitas & Jean-Luc Arregle & Anca Borza, 2000. "Partner Selection in Emerging and Developed Market Contexts : Resource-Based and Organizational Learning Perspectives," Post-Print hal-02312691, HAL.
    29. Oded Shenkar & Jiatao Li, 1999. "Knowledge Search in International Cooperative Ventures," Organization Science, INFORMS, vol. 10(2), pages 134-143, April.
    30. Ming-Chang Huang & Ya-Ping Chiu, 2014. "The antecedents and outcome of control in IJVs: A control gap framework," Asia Pacific Journal of Management, Springer, vol. 31(1), pages 245-269, March.
    31. Jean-François Hennart, 1991. "The Transaction Costs Theory of Joint Ventures: An Empirical Study of Japanese Subsidiaries in the United States," Management Science, INFORMS, vol. 37(4), pages 483-497, April.
    32. Gary Hamel, 1991. "Competition for competence and interpartner learning within international strategic alliances," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 83-103, June.
    33. Andrew Delios & Paul W. Beamish, 1999. "Ownership strategy of Japanese firms: transactional, institutional, and experience influences," Strategic Management Journal, Wiley Blackwell, vol. 20(10), pages 915-933, October.
    34. S.A. Lippman & R.P. Rumelt, 1982. "Uncertain Imitability: An Analysis of Interfirm Differences in Efficiency under Competition," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 418-438, Autumn.
    35. John Child & Yanni Yan, 2003. "Predicting the Performance of International Joint Ventures: An Investigation in China," Journal of Management Studies, Wiley Blackwell, vol. 40(2), pages 283-320, March.
    36. Anoop Madhok & Stephen B. Tallman, 1998. "Resources, Transactions and Rents: Managing Value Through Interfirm Collaborative Relationships," Organization Science, INFORMS, vol. 9(3), pages 326-339, June.
    37. J Michael Geringer, 1991. "Strategic Determinants of Partner Selection Criteria in International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(1), pages 41-62, March.
    38. Jane W. Lu & Paul W. Beamish, 2001. "The internationalization and performance of SMEs," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 565-586, June.
    39. Ji Li & Kevin Lam & Gongming Qian, 2001. "Does Culture Affect Behavior and Performance of Firms? The Case of Joint Ventures in China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(1), pages 115-131, March.
    40. Paul Ingram & Tal Simons, 2002. "The Transfer of Experience in Groups of Organizations: Implications for Performance and Competition," Management Science, INFORMS, vol. 48(12), pages 1517-1533, December.
    41. Mona V. Makhija & Usha Ganesh, 1997. "The Relationship Between Control and Partner Learning in Learning-Related Joint Ventures," Organization Science, INFORMS, vol. 8(5), pages 508-527, October.
    42. H. Kevin Steensma & Marjorie A. Lyles, 2000. "Explaining IJV survival in a transitional economy through social exchange and knowledge‐based perspectives," Strategic Management Journal, Wiley Blackwell, vol. 21(8), pages 831-851, 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. Ryan W. Tang & Ying Zhu & Hongbo Cai & Jinrong Han, 2021. "De-internationalization: A Thematic Review and the Directions Forward," Management International Review, Springer, vol. 61(3), pages 267-312, June.
    2. Oh, Eun-Teak & Chen, Hao-Cheng & Nakamoto, Ryuichi & Liu, Ren-Jye, 2024. "Alliance portfolio configuration strategies as catalysts for innovation: Evidence from international alliances between Japanese and Taiwanese manufacturing corporations," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    3. Marius G. Gehrisch & Stefan Süß, 2023. "Organizational behavior in international strategic alliances and the relation to performance – a literature review and avenues for future research," Management Review Quarterly, Springer, vol. 73(3), pages 1045-1107, September.
    4. Ting Liu & Ye Huang, 2024. "The influence of subnational corruption on the conversion of foreign proprietorship: Stumbling block or lubricant? Evidence from Sino-foreign joint ventures," Asia Pacific Journal of Management, Springer, vol. 41(1), pages 135-170, March.
    5. Bach, Vanessa & Finogenova, Natalia & Berger, Markus & Winter, Lisa & Finkbeiner, Matthias, 2017. "Enhancing the assessment of critical resource use at the country level with the SCARCE method – Case study of Germany," Resources Policy, Elsevier, vol. 53(C), pages 283-299.
    6. Cristina López-Duarte & Marta M. Vidal-Suárez & Belén González-Díaz, 2018. "The early adulthood of the Asia Pacific Journal of Management: A literature review 2005–2014," Asia Pacific Journal of Management, Springer, vol. 35(2), pages 313-345, June.
    7. Myung-Ho Chung & Yumi Ko & Jee-Young Kim, 2020. "Group power structure, inter-subgroup cross-dependency, and work group performance," Asia Pacific Journal of Management, Springer, vol. 37(1), pages 297-323, March.
    8. Liu, Yang & Deng, Ping & Wei, Jiang & Ying, Ying & Wu, Bing, 2021. "How to gain from international R&D alliances? A mutual dependence logic," Journal of Business Research, Elsevier, vol. 135(C), pages 800-815.
    9. Jin, Jason Lu & Wang, Liwen, 2021. "Resource complementarity, partner differences, and international joint venture performance," Journal of Business Research, Elsevier, vol. 130(C), pages 232-246.
    10. Wang, Qingtao & Bai, Xuan & Li, Julie Juan, 2023. "Achieving value co-creation through cooperation in international joint ventures: A two-level perspective," International Business Review, Elsevier, vol. 32(1).
    11. Omayma Yassine, 2023. "Understanding the Paradox in the Results of National Cultural Distance Impact on International Joint Venture Performance: A Narrative Review of Prior Literature," Modern Applied Science, Canadian Center of Science and Education, vol. 17(1), pages 1-1, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pak, Yong Suhk & Ra, Wonchan & Park, Young-Ryeol, 2009. "Understanding IJV performance in a learning and conflict mediated context," International Business Review, Elsevier, vol. 18(5), pages 470-480, October.
    2. Lu, Jane W. & Beamish, Paul W., 2006. "Partnering strategies and performance of SMEs' international joint ventures," Journal of Business Venturing, Elsevier, vol. 21(4), pages 461-486, July.
    3. Michael Nippa & Jeffrey J Reuer, 2019. "On the future of international joint venture research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 555-597, June.
    4. Kolloge, Konstantin, 2009. "Die Messung des Kooperationserfolges in der empirischen Forschung: Ergebnisse einer Literaturstudie," Arbeitspapiere 76, University of Münster, Institute for Cooperatives.
    5. Nemeth, Alexander, 2012. "A framework of international joint ventures exit: A resource dependence and learning perspective," Freiberg Working Papers 2012/02, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    6. Piaskowska, D., 2005. "Essays on firm growth and value creation," Other publications TiSEM 89053610-79c6-4c52-9d1c-6, Tilburg University, School of Economics and Management.
    7. Cuypers, I.R.P., 2009. "Essays on equity joint ventures, uncertainty and experience," Other publications TiSEM 8dc79e86-c625-467f-a450-8, Tilburg University, School of Economics and Management.
    8. Hyo Eun Cho & Jon Jungbien Moon & Insik Jeong, 2022. "Equal ownership split in international joint ventures: performance implications in an emerging market," Asian Business & Management, Palgrave Macmillan, vol. 21(2), pages 205-230, April.
    9. Huang, Ming-Chang & Chiu, Ya-Ping, 2020. "A knowledge tension perspective on management control and performance in international joint ventures," Journal of International Management, Elsevier, vol. 26(4).
    10. Dovev Lavie & Stewart R. Miller, 2008. "Alliance Portfolio Internationalization and Firm Performance," Organization Science, INFORMS, vol. 19(4), pages 623-646, August.
    11. Li, Peng-Yu & Meyer, Klaus E., 2009. "Contextualizing experience effects in international business: A study of ownership strategies," Journal of World Business, Elsevier, vol. 44(4), pages 370-382, October.
    12. Michael A Sartor & Paul W Beamish, 2018. "Host market government corruption and the equity-based foreign entry strategies of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(3), pages 346-370, April.
    13. Alexander Nemeth & Michael Nippa, 2013. "Rigor and Relevance of IJV Exit Research," Management International Review, Springer, vol. 53(3), pages 449-475, June.
    14. Li, Dan & Miller, Stewart R. & Eden, Lorraine & Hitt, Michael A., 2012. "The Impact of Rule of Law on Market Value Creation for Local Alliance Partners in BRIC Countries," Journal of International Management, Elsevier, vol. 18(4), pages 305-321.
    15. Hyo Eun Cho & Jon Jungbien Moon & Insik Jeong, 0. "Equal ownership split in international joint ventures: performance implications in an emerging market," Asian Business & Management, Palgrave Macmillan, vol. 0, pages 1-26.
    16. Yadong Luo & Huan Zhang & Juan Bu, 2019. "Developed country MNEs investing in developing economies: Progress and prospect," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 633-667, June.
    17. Megan Min Zhang & Paul W. Beamish, 2019. "An institutional response model to economic liberalization: Japanese MNEs’ ownership choices in China," Asia Pacific Journal of Management, Springer, vol. 36(1), pages 33-59, March.
    18. Pak, Yong Suhk & Ra, Wonchan & Lee, Jong Min, 2015. "An integrated multi-stage model of knowledge management in international joint ventures: Identifying a trigger for knowledge exploration and knowledge harvest," Journal of World Business, Elsevier, vol. 50(1), pages 180-191.
    19. Marco Furlotti & Giuseppe Soda, 2018. "Fit for the Task: Complementarity, Asymmetry, and Partner Selection in Alliances," Organization Science, INFORMS, vol. 29(5), pages 837-854, October.
    20. Koen H. Heimeriks & Geert Duysters, 2007. "Alliance Capability as a Mediator Between Experience and Alliance Performance: An Empirical Investigation into the Alliance Capability Development Process," Journal of Management Studies, Wiley Blackwell, vol. 44(1), pages 25-49, January.

    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:kap:asiapa:v:32:y:2015:i:4:p:1039-1064. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.