Meta-analyses of International Joint Venture Performance Determinants

Abstract

0While research on international joint ventures (IJVs) has intensified over the last few decades, numerous reviewers have criticized the field for lack of accumulation. We use meta-analytic techniques to quantitatively synthesize and evaluate agency theory and the behavioral perspective in their ability to explain IJV performance variance. Overall, we find support for these theories but moderator analyses unveil important effects of artifactual variables, and point to a unique character of IJVs in China. 0Based on meta-analyses of 165 effect sizes from 61 independent samples and a total of 26,927 IJVs, the results offer overall support for a hypothesized path model grounded in agency theory and the behavioral perspective. However, only 19 percent of the variance in IJV performance is accounted for, indicating a need to explore other underexplored variables. We do not find evidence that hierarchical control is associated with partner conflict. Closer examination shows that for IJVs in China such control lowers partner conflict, while for IJVs in other countries it amplifies partner conflict. The effects of partner conflict on IJV performance are less harmful for Chinese joint ventures than for joint ventures in other countries. Furthermore, while objective measures of cultural distance show a weak positive effect on IJV performance, subjective measures show a negative effect.

An overview of Hofstede-inspired country-level culture research in international business since 2006

“…They conclude that ''the most glaring need in type I studies at the country level (where culture is used as an independent variable) is to explain the conflicting findings regarding the effects of cultural distance on various organizational decisions such as entry mode choice'' (KLG, 2006, p. 302). Meta-analyses on cultural distance analyzing several of these 'organizational decisions' that appeared since KLG's article was published show inconclusive results (Tihanyi et al, 2005;Magnusson, Baack, Zdravkovic, Staub, & Amine, 2008;Reus & Rottig, 2009;Zhao, Luo & Suh, 2004;Morschett, Schramm-Klein, & Swoboda, 2010). One possible reason for these inconsistencies regarding the effect of cultural distance, for example on modes, is that these organizational decisions have been studied separately, whereas location choice, governance mode, entry mode, and performance outcomes are interrelated as part of important strategic decisions.…”

Modos de Entrada no Investimento Direto no Exterior: Um Estudo da Literatura Empírica

“…O mesmo acontece com as medidas subjetivas, entre as quais, satisfação com o desempenho e lucratividade foram os indicadores mais utilizados. Os resultados sugerem que o nível de propriedade não tem impacto apreciável sobre o desempenho da subsidiária, como apontado por diversos autores (p.ex., Bausch & Krist, 2007;Reus & Rottig, 2009 Percebe-se, novamente, que não há tendência em favor de nenhum dos dois tipos de entrada (aquisição versus investimento greenfield). Além disso, a grande maioria dos estudos utilizou a sobrevivência da subsidiária como indicador preferencial.…”

Evaluating the effects of cultural and psychic distance on multinational corporate performance: a meta-analysis

“…Magnusson et al (2008) point out a strong and slightly negative relationship between CD&PD and MNE performance and exemplify three significant moderators; MNE origin, measures of CD&PD and relationship over time. Finally, Reus and Rottig (2009), find a positive influence of CD&PD on partner conflict, which negatively impacts on MNE performance, thus pointing out the indirect influence of CD&PD on the performance of International Joint Ventures (IJVs).…”

“…Currently, there are three different meta-analytic studies published in the literature; Tihanyi et al (2005), Magnusson et al (2008), and Reus and Rottig (2009). Tihanyi et al (2005) advocate a statistically weak and slightly negative relationship between CD&PD and MNE performance, while the moderating variables investigated do not have any significant effects.…”

“…The most critical implication of the previous meta-analysis studies is the crucial role of the moderating variables used since as the authors above have indicated that the moderators can convert the relationship from negative to positive (Magnuson et al, 2008;Reus & Rottig, 2009). More importantly, as argued by the authors, only a few variables have been examined and indicate that further research needs to identify and investigate other moderators that have a significant impact on the relationship.…”