AFTER THE INK DRIES: THE INTERACTION OF TRUST AND CONTROL IN US-BASED INTERNATIONAL JOINT VENTURES

This study empirically examines the moderating effects of age and partner trust on the relationship between control mechanisms and perceptions of performance in 129 US‐based international joint ventures (IJVs). A reliance on formal control mechanisms and general managers’ perceptions of IJV performance were found to be positively related in younger IJVs, but this relationship became negative in more mature IJVs. In addition, social control mechanisms and perceptions of IJV performance were positively related, but only in the presence of affect‐based trust between the parents.     

Corporate Social Performance,Legitimacy, and the Choice of Foreign Partners by State-Controlled Entities in the Global Extractive Industries

We study the outcome of the decision of a state-controlled entity (SCE) to form an international joint venture (IJV) with a foreign partner in the SCE's country. Focusing on the perspective of the host SCE, we propose that in its search for a partner, the SCE will evaluate the sociopolitical legitimacy effect of a candidate partner's corporate social performance (CSP). Thereby, the SCE will consider CSP an important selection criterion because of its legitimacy effect on the selection decision, the SCE, the IJV, and the host state in the eyes of salient local and international stakeholders. Moreover, the legitimacy effect of a candidate partner's CSP will further influence the decision outcome through its interaction with the level of corruption in the candidate partner's home country, the extant sociopolitical legitimacy of the host state, and the number of neighbouring countries of the host country participating in international multi-stakeholder initiatives. We find support for our hypotheses using a novel sample of extractive industries IJVs between SCEs from 48 countries and 203 foreign partners from 22 countries for the period 2000–15.     

Performance Implications of IJV Boards: A Contingency Perspective

This study draws from the corporate governance literature to investigate the implications of board involvement for international joint ventures (IJVs). We extend recent corporate governance research on the value of board involvement by investigating unique sources of complexity related to the nature of the IJV. We argue and find that board involvement can enhance the performance of IJVs, particularly for collaborations that are complex in nature due to their broad functional scope as well the level of market overlap between IJV parents. We complement recent research on joint venture control that has focused on the antecedents and types of control, as well as studies on formal (e.g. contractual safeguards and monitoring) and informal governance mechanisms (e.g. trust) by providing empirical evidence that IJV board involvement is valuable when directors undertake their control and coordination responsibilities. We advance corporate governance research by providing evidence that joint ventures possess several unique characteristics that shape the value of board involvement, thereby showing that applications of corporate governance theory to joint ventures are useful, but should be made with care.     

Technology transfer, specific local knowledge and entrepreneurial partner control in international joint ventures

Previous research has sought to demonstrate the influence of control of an IJV on achieving the learning objectives of the partners involved. However, the effect that certain types of learning have on the control of the IJV, which are vital for the success of the internationalization of the entrepreneurial firm, has yet to be explored. The results from case studies of six IJVs show that, during the post-formation stage, the configuration of entrepreneurial partner control over the IJV is conditioned by both technology transfer and by learning specific local knowledge by the entrepreneurial partner. The study also shows that the negative relation between trust and control suggested by the literature is limited to cases where trust has broken down. Greater levels of trust are also compatible with greater control with a view to appropriately exploiting when firms see the need to intensify control or need to implement new control mechanisms in order to properly exploit the resources contributed to the IJV.     

Post‐Formation Processes in Eastern and Western European Joint Ventures*

abstract This study examines the post‐formation processes that firms use to create successful international joint ventures (IJVs). Scholars have suggested that IJV performance is dependent on the post‐formation processes firms institute to overcome barriers to success created by differences in national culture, trust, ownership positions and control mechanisms. Based on a longitudinal study of eight eastern/western European IJVs, our study provides insights into these post‐formation processes, how these processes relate to each other, and how they relate to managers’ evaluations of IJV success.     

A comparative study of human resource management practices in international joint ventures: the impact of national origin

This paper presents a comparative study of the effects of national origin, a company's strategic orientation and its investment profile on preference for the application of human resource management (HRM) practices as conducted in international joint ventures (IJVs). The approach extends understanding by offering a broader exploration of how national differences generate additional barriers that impact on specific HRM practices. The evidence from the study presented suggests that there is little support for national origin being a major independent influence. National distinctiveness does define the types of integration between parent companies and IJVs, but these collaborations do not necessarily reflect any specific national institutional bias. Examination of eighty-seven IJVs suggests that IJV management has a high degree of organizational autonomy in the implementation of a company's task-related inputs regardless of the national background of the foreign partner. The presence of a company's task-related effects on HRM practices plays a significant contextual role where the major attributes are the technology, management development and the compatible use of an IJV's resources. The results confirm that there is little evidence to suggest that partner-related influences derived from the partners' complementary resources and competences in the field of HRM development that are national origin specific have had significant influence over HRM development in the IJVs studied.     

International joint ventures,HRM and viable knowledge migration

International joint ventures (IJVs) are an increasingly popular form of voluntary co-operation between organizations of different sizes, sectors and geographical locations to satisfy strategic purposes and manage increasingly complex business environments. However, international joint ventures may fail, and HRM plays an important role in their success or failure. From a systems perspective, IJVs offer several kinds of complexity which may contribute to the generation of conflict and failure. The paper proposes that we explore the role of HRM in IJVs through viable systems theory, especially in relation to knowledge migration and organizational learning. The theory presented distinguishes between the cognitive, organizing and behavioural domains of the IJV as a system in the analysis of the relationship between types of worldview and behaviour in IJVs. It proposes a model of viable knowledge development in IJVs and its relationship to HRM, involving knowledge migration, appreciation and action, leading to organizational learning, and identifies directions for future research.     

Predicting the Performance of International Joint Ventures: An Investigation in China*

ABSTRACT Organizational learning, resourcing and control have been identified in the literature as potential firm‐level influences on the performance of international joint ventures (IJVs). The study reported here examines the impact of these factors on the performance of Sino‐foreign IJVs. Their performance is assessed in terms of both ‘goal’ and ‘system’ criteria. The hypothesized performance determinants are found to be more strongly associated with variance in system performance than in goal performance. The main performance predictors are the parent companies’ experience with international business and joint ventures, and the quality of resources they provide to the joint ventures in respect of capital investment, new facilities and operational inputs. When good quality resourcing is provided, the sharing of control with local partners also predicts higher IJV performance. The performance effects of these factors appears to be cumulative, implying that further research should examine them together rather than singularly.     

Impact of culture on ‘partner selection criteria’ in East Asian international joint ventures

Selecting the right partner is important for the success of alliances and joint ventures. For international joint ventures (IJVs) from diverse cultures the partner selection process can become complicated. Prior studies have investigated the alliances and joint ventures to develop a set of objective criteria for evaluating potential partners. This paper reports the study of IJVs formed by Singapore firms in Peoples Republic of China and India. The intent was to develop a methodology for identifying partner selection criteria in a cross-cultural setting. The findings reveal that the partner selection process follows a different logic in Confucian societies. Trust has been established to be essential for developing enduring co-operative relationships. The paper explores the concept of trust in relation to commitment and control in the context of the Confucian culture. We discover that trust is critical to partner selection. Cultural differences do not significantly alter the partner selection criteria for Singapore firms. Results support the view that while Chinese may depend on networks for social solidarity, social trust does extends beyond the family and is necessary for harmonious and successful joint ventures.     

项目合伙人模式的治理机制研究

项目合伙人模式是与合伙人建立起一种可灵活调整的动态合作模式,有效地解决了长期和短期合作模式中的弊端。基于资源配置的相关理论,本文从项目合伙人模式各阶段的核心目标出发,探究了其过程中的资源配置与治理机制。以北京华开工程建设有限公司为案例,分析其利用项目合伙人模式进行战略转型过程中合伙双方投入的资源类型、配置状态、交互过程,最终提出了项目合伙人模式的实现过程和治理机制之间的关系模型框架。研究发现,项目合伙人模式延循着创建期、磨合期、稳定期和完成期这四个阶段,通过一系列治理机制实现建设方与合伙人之间资源获取、资源协调、资源嵌入、资源整合,使得项目合伙主体之间得以相互配合实现共赢。本文归纳并揭示了项目合伙人模式的实现过程与治理机制等一般规律,可为未来实践中项目合伙人模式的应用提供有价值的指导。     

Multi-cultural leadership teams and organizational identification in international joint ventures

Many international joint ventures (IJVs) fare poorly. An important factor is that members of an IJV top management team (TMT), which generally comprises people from different cultures, often find it difficult to work together. In this paper we argue that social identity theory and organizational identification processes can help us understand why this is so. We propose that factionalism in a TMT is a significant hazard posed by member identification with different parents. In addition, identification with both the IJV and a parent firm can lead to significant role conflict for IJV top managers. Factionalism and role conflict in turn can result in poor intra-TMT communications and inefficient decision making. Literature in social identity theory and organizational identification suggests that the relative status and power of parents as well as successes of IJVs can affect TMT members' identification with the IJV or the parent company. Preliminary field interviews provide general support for these propositions. Our analysis suggests that organizational identity and identification can be a valuable tool to facilitate the understanding of TMT functioning and IJV performance.     

Dynamics of decision power in the localization process: comparative case studies of China-Western IJVs

International HRM has focused on the MNC and its control and compliance mechanisms, particularly the tension between ‘internationalizing’ practices and normative host-country practices. This contingency approach does not capture the complexity of MNC interactions in the local environment, however, particularly with regard to international joint ventures (IJVs). Partners to the IJV may wish to impose their own practices, and use contractual and non-contractual resource power, internationalization expertise and operational consistency requirements to gain relative decisional advantage. Case studies of four Sino-Western IJVs illustrate the dynamics of IHRM development under conditions of weak socio-legal constraint and high cultural distance between partners.     

Sub‐National Institutional Contingencies,Network Positions,and IJV Partner Selection

The differences in sub‐national institutions within large and complex emerging economies have been increasingly noted. Drawing on social network theory and the institution‐based view, we argue that two network structural attributes of domestic firms – centrality and structural holes – have distinctive values in different sub‐national regions where institutional contexts differ widely. In addition, these sub‐national institutional contingencies influence the attractiveness of different network attributes to foreign entrants seeking international joint venture (IJV) partners. Specifically, in regions where the degree of marketization is high, centrally positioned domestic firms are more likely to be selected by foreign entrants as IJV partners. In regions where the degree of marketization is low, domestic broker firms are more attractive IJV partners. Results from the electrical and information technology industries in 18 provinces in China largely support our hypotheses.     

HOST-COUNTRY MANAGERIAL BEHAVIOUR AND LEARNING IN CHINESE AND HUNGARIAN JOINT VENTURES*

Close similarities in the behaviour reported of host country managers in Chinese and Hungarian joint ventures have emerged from recent research. an assessment is offered of four perspectives which purport to account for managerial behaviour in these contexts, namely those referring to the system of industrial governance, the nature of industrialization, national culture and resistance to change. the system of industrial governance provides the most direct and comprehensive explanation, and is also linked with influences from national culture and industrialization. the article concludes by examining the modes of host country learning in process within the joint ventures as foreign partners endeavour to change the behaviour of local managers.     

Social capital and human resource management in international joint ventures in Vietnam: a perspective from a transitional economy

This study highlights the importance of social capital in international joint ventures (IJVs), and examines human resource practices as a factor shaping such social capital. Comprehensive measures of social capital are developed and tested, which extend prior work on ‘bonding’ and ‘bridging’ social capital. We also link social capital with its anticipated antecedents and consequences. The study's findings are based on data collected from 164 IJVs located in Vietnam. IJV performance was predicted by training and by the level of trust and cooperation between foreign and local personnel. Training (including acquisition of management skills, technology, and cross-cultural understanding) also was predictive of the measures of social capital. A key practical implication arising from this study is that the return on investment from training of joint venture personnel can stem not only from the transfer of technical and management skills needed for developing competitive advantage, but also from the positive impact on social capital, which further contributes to venture success. The establishment of written objectives and plans for the venture, as well as the IJV's level of control regarding its own HR functions also was found to be related to some components of social capital. The findings of this study reinforce the call to build on the contributions of local personnel in joint ventures, and in Vietnam in particular.     

Forecasting clients’ reactions: How does the perception of strategic behavior influence the acceptance of advice?

Because they want high quality information, people often follow advice from advisors with high levels of expertise and confidence, and a reputation for accuracy. However, clients cannot always be sure that an advisor is actually using a knowledge advantage to act in the client’s best interests. In two studies we investigated the influence of an advisor’s perceived degree of self-interested intention on the client’s intention to accept and use their advice. We report two experiments in which clients received the same advice from a supposed representative of either a profit or a non-profit organization. The results of our first study suggest that clients who were confronted with an advisor from an organization with a profit-oriented background ascribed higher levels of self-interested intentions to the advisor and perceived the advisor to be less trustworthy. Furthermore, clients were less willing to rely on the advisor’s recommendation, and this effect was mediated by the perceived trustworthiness of the advisor. In our second study we conceptually replicated the findings of Study 1 using behavioral measures, and also differentiated three different facets of trustworthiness (competence, benevolence and integrity) in the interaction between advisor and client.     

Strategic stakeholder management,environmental corporate social responsibility engagement,and financial performance of stigmatized firms derived from Chinese special environmental policy

We draw upon the stigma literature and strategic stakeholder management model to develop a framework capable of explaining the link between environmental corporate social responsibility (ECSR) engagement and financial performance of stigmatized firms, taking stakeholder‐oriented governance and density of local stigmatized firms into consideration. Using a uniquely compiled dataset of Chinese firms specifically monitored by the Ministry of Environmental Protection of China, we conducted propensity score matching analysis to estimate the impact of stigma on corporate financial performance and corporate environmental responsibility. The result shows that the financial performance of stigmatized firms is negatively affected by the stigma label, spurring them to engage in more ECSR than their peers to improve their legitimacy. Though ECSR engagement of stigmatized firms is found to be negatively associated with their financial performance in current study. Our results also confirm that (a) the financial performance of stigmatized firms is positively affected by two proxies for corporate stakeholder‐oriented governance (i.e., institutional ownership and corporate transparency) and negatively affected by the density of local stigmatized firms; (b) corporate stakeholder‐oriented governance compensates for the negative effect of ECSR engagement; (c) high intensity of local stigmatized firms provides focal firms with an opportunity to improve their financial performance through ECSR engagement; and (d) the positive effects of corporate stakeholder‐oriented governance are diminished by the density of local stigmatized firms.     

Collective Dynamics of Citizenship Behaviour: What Group Characteristics Promote Group‐Level Helping?

A basic tenet of research on organizational citizenship behaviour (OCB) is that OCB aggregated across individuals improves organizational performance. Departing from the typical focus on individual-level OCB, the construct of group-level OCB (GOCB) recently emerged as a critical group function that affects various group effectiveness measures. Despite the clear link between GOCB and team performance, the existing literature provides a limited understanding with regard to the antecedents of GOCB, mostly focusing on leadership variables. Establishing helping behaviour (a core dimension of OCB) as a collective construct, this study substantially expands the antecedents of group-level helping, and empirically tests their effects using three different operationalizations of group-level helping. The results, based on a sample of 96 work units, show that membership diversity in gender and education decreased group-level helping, whereas diversity in tenure increased it. Group-level helping was also positively related to leadership characteristics (supportive unit manager, transformational top management) and perceived competence of unit members. In addition, the analysis further indicated that perceived competence is a positive predictor of group-level helping only when the unit members also believe that others are trustworthy in terms of integrity and benevolent motivation. From a methodological standpoint, the study provides important insights by comparing different ways of operationalizing collective constructs.     

Board Antecedents of CEO Duality and the Moderating Role of Country‐level Managerial Discretion: A Meta‐analytic Investigation

CEO duality reduces boards’ monitoring capacity. But governance substitution theory holds that boards of directors who can effectively monitor their CEOs are more likely to adopt the CEO duality governance structure. By examining relationships between board characteristics underlying their monitoring capacity and CEO duality, we bring evidence to bear on governance substitution theory. Further, by applying a managerial discretion theory lens to CEO duality, we extend governance substitution theory to the cross‐country context where institutional features vary in their constraints on managerial discretion. Meta‐analytic results from a dataset of 297 studies across 32 countries/regions provided support for the majority of our predictions. As predicted, board independence and certain types of board human capital were positively related to CEO duality. Unexpectedly, board ownership was negatively related to CEO duality. Additionally, country‐level managerial discretion significantly moderated the board independence‐ and human capital‐duality relationships (but not the board‐ownership‐duality relationship) as predicted.     

Partner Type Diversity in Alliance Portfolios: Multiple Dimensions,Boundary Conditions and Firm Innovation Performance

Our research extends the current knowledge based view on the configuration of alliance portfolios and their deployment in different external knowledge environments. We study these alliance portfolios in a longitudinal sample (1996–2010) for over three thousand firms that operate in a large number of industries in the Netherlands. Our findings indicate that partner type variety and partner type relevance, as different dimensions of partner diversity in alliance portfolios, both have an inverted U‐shaped association with firm innovation performance. However, alliance portfolios characterized by both high partner type variety and high relevance cause inferior innovation performance. Different external knowledge environments, characterized by different levels of industry modularity and scope of knowledge distribution, moderate the inverted U‐shaped associations of partner type variety and relevance in alliance portfolios with firm innovation performance in opposing directions. While for partner type variety, a high level is found to be optimal in environments with greater modularity or broader scope of knowledge distribution, for partner type relevance it turns out that a low level is optimal under more modular industry conditions.