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How does local partners network embeddedness affect international joint venture survival in different subnational contexts?

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  • Jinsil Kim

    (The College of New Jersey)

  • Kyun Kim

    (The University of Texas at Dallas)

Abstract

Do local partners' network attributes affect the survival of high-tech international joint ventures (IJV)? How does the effect of network attributes vary in different subnational institutional environments? While the classic economic explanation for IJV formation and subsequent performance draws from the resource-based view (RBV), we add the relational dimension to explain that IJV survival may be affected by local partners’ relation-specific assets within the local network. We test the effect of the local partners’ network attributes as calculated by UCINET (centrality, network status, and structural hole position) on IJV survival. We additionally assert that this relationship is moderated by subnational institutional heterogeneity. Using our sample of 125 IJV dyadic pairs of US multinational enterprises (MNEs) operating in high-tech industries and their local partners in China, we find partial support for our claims.

Suggested Citation

  • Jinsil Kim & Kyun Kim, 2018. "How does local partners network embeddedness affect international joint venture survival in different subnational contexts?," Asia Pacific Journal of Management, Springer, vol. 35(4), pages 1055-1080, December.
    • Handle: RePEc:kap:asiapa:v:35:y:2018:i:4:d:10.1007_s10490-017-9540-1
    DOI: 10.1007/s10490-017-9540-1
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