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The Value of Migrants for International Joint Ventures

In: The Palgrave Handbook of Global Migration in International Business

Author

Listed:
  • Julia Mittermayr

    (Vienna University of Economics and Business)

  • Vera Kunczer

    (Vienna University of Economics and Business)

  • Jonas Puck

    (Vienna University of Economics and Business)

Abstract

International joint ventures (IJVs) have become a key element in most companies’ growth strategies when expanding into foreign markets. Yet, IJVs can be difficult to manage and are often characterized by high dissolution rates. Cultural conflicts between partner firms are being cited as one of the main reasons for these difficulties. According to the social identity theory (SIT), cultural differences between IJV partners may lead to the formation of nationality-based social subgroups within the IJV, hindering collaboration and reducing performance outcomes. Our research suggests that international migrants, who have valuable knowledge of foreign cultures, may play a role in reducing the formation of subgroups and enhancing the partnership in IJVs, resulting in improved performance. We found that migration is positively correlated with IJV performance, and this relationship is stronger when there is a higher share of female migrants. The age of migrants does not appear to be a significant factor in this relationship. These findings shed light on previously unexplored areas in migration and IJV literature, and further our understanding of the SIT in the context of international business activities.

Suggested Citation

  • Julia Mittermayr & Vera Kunczer & Jonas Puck, 2023. "The Value of Migrants for International Joint Ventures," Springer Books, in: Audra I. Mockaitis (ed.), The Palgrave Handbook of Global Migration in International Business, chapter 12, pages 251-277, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-38886-6_12
    DOI: 10.1007/978-3-031-38886-6_12
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