Do culturally distant partners choose different types of joint ventures?

Studies of international joint ventures yield conflicting results when looking at the role played by cultural distance. We argue that managers understand the problems associated with cultural distance and seek to mitigate its impact by selecting certain types of joint ventures. Using Das and Teng's [Das, T. K., & Teng, B.-S. (2001). A risk-perception model of alliance structuring. Journal of International Management, 7(1): 1–30] typology of unilateral and bilateral alliances to categorize a sample of ventures based on their strategic focus, our results indicate that greater cultural distance is associated with an increased probability that a marketing or supplier alliance will be formed and a lower probability that an innovation-oriented alliance will be formed.     

Cooperative ventures in emerging economies

Foreign market entry strategy involves choices about which markets to enter and how to do it. Most of the literature on foreign direct investment reflects an interest in ownership structure decisions and the risks foreign investing firm may face. As recognized in many studies, one set of risks arises from public expropriation hazards, a function of the ability of the host country's institutional environment to credibly commit to a given policy or regulatory regime. Empirical research has shown this hazard to have an impact on ownership levels. This study is a theoretical model that describes how multinational firms face moral hazard risk from their local partners and political risk from the host country when they decide to go abroad in a joint-venture alliance. I found that the greater the level of hazard expropriation, the lower the participation of the multinational firm in the final cash flow, except for when the multinational firm has the negotiation power and there is a high level of local investment protectionism. In that case, the multinational firm increases its participation in the final cash flow.     

Cultural distance and the choice between wholly owned subsidiaries and joint ventures

Most empirical research on the choice between joint ventures and wholly owned subsidiaries analyzes the role of cultural distance in an isolated way. This study explores the potential influence of some factors related to the diversity among countries that are traditionally associated with cultural distance but not explicitly included in measurements of cultural distance. Different approaches to and measurements of cultural distance are used in this analysis. This study examines the potential existence of a moderating or intensifying effect of third variables on the role played by cultural distance. The results confirm the contingent role of host country risk on the choice between equity joint ventures and wholly owned subsidiaries.     

Strategic orientations,joint learning,and innovation generation in international customer-supplier relationships

While innovations generated by international supply channel relationships, as opposed to individual partners, are playing an increasingly important role in the success of all international supply chain partnerships, research on how international supply chain relationships cultivate the process of such innovation generation, particularly for contracting suppliers firms, remains scant. This study explores how supplier joint learning capability can play a role in developing both incremental and radical innovations. The empirical test, which used a sample of 204 Taiwanese executives in electronic suppliers, supports most of the hypotheses in the study. The results demonstrate that different strategic orientations can drive various types of innovation through different paths by the mediating effect of joint learning capability. Specifically, we find that long-term orientation influences only incremental innovation, whereas radical innovation is driven by electronic integration and proactive customer orientation by joint learning. Furthermore, environmental uncertainties such as technological uncertainty and demand uncertainty are found to be moderating the impacts of joint learning capability on radical innovations. Some implications of the results are discussed at the end.     

Managing international joint ventures to improve performance: The role of structural and social mechanisms

Poor performance has been a major concern in research on international joint ventures (IJVs). This study integrates the IJV management mechanisms from transaction cost theory (TCT) and social exchange theory (SET) in order to gain insights into management mechanisms that improve IJV performance. The framework consists of three structural (i.e., symmetric dependence, symmetric equity share and resource complementarity) and three social (i.e., trust, communication and cultural adaptation) IJV management mechanisms, which are considered as potential determinants of IJV performance. Based on the analysis of data collected from 89 IJVs established by Nordic firms in Asia, Europe and the USA, results indicate that TCT-based symmetric dependence and resource complementarity on the one hand and SET-based trust, communication and cultural adaptation on another significantly improve IJV performance. However, impact of symmetric equity share on IJV performance remains negative and non-significant, explaining that IJV partners may consider it rather a safeguard to their own stake and interests in IJVs. In addition, SET-based IJV management mechanisms are found to be more effective than the TCT-based IJV mechanisms in improving IJV performance.     

从联系的视角看东西方合资企业中的组织学习

合资企业通过组织学习来实现知识转移,提高组织效能与竞争力的问题已引起理论界越来越多的关注。在东西方合资企业中,合资双方在资源、技术能力方面的差异导致了合作伙伴权力的不对称性,给学习与合作关系带来了不利影响。本文提出,为了把握合资企业组织学习与伙伴关系的动态性,合资双方应超越“掌握知识和技能”的局限性,从联系的视角理解构成学习过程的关系和情绪问题。     

The role of conflict, culture, and myth in creating attitudinal commitment

Using qualitative methods, the authors examine commitment in the sports industry and specifically in a NASCAR context. Commitment, or the culmination of the customer-service provider relationship, plays a particularly critical role in NASCAR, for which more than 70% of fans consciously choose a current sponsor's brand over a competitor's. Previous research, primarily in the domain of business-to-business marketing, focuses on attitudinal, instrumental, and temporal components of commitment; this article examines attitudinal commitment within the NASCAR context. Whereas previous research conceptualizes attitudinal commitment as identification, value congruence, and affiliation, this research presents a wider view. Specifically, within the NASCAR consumption culture, hero/villain myths surrounding drivers create conflict that heightens attitudinal commitment to the sport. This research therefore offers implications regarding non-traditional components of attitudinal commitment.     

Developing the selection and valuation capabilities through learning: The case of corporate venture capital

The objective of this paper is to examine the impacts of experience intensity, experience diversity and acquisitive experience on the development of selection and valuation capabilities that help the parent (investor) company generate higher short-term financial returns and improve long-term strategic performance. Based on our analysis of 2110 cases of CVC investments in the VenureXpert data base, we find that industry diversity of a CVC program's experience is positively related to its selection of portfolio companies with relatively high financial potential. The CVC program's experience intensity, stage diversity of its experience, and syndication improve its selection of portfolio companies with greater strategic potential. In addition, stage diversity may enhance valuation capability. We also find that experience accumulation is more effective when a CVC program invests in a portfolio company in the later stage rather than in the early stage.     

A model of trust and compliance in franchise relationships

Despite the danger of franchisee non-compliance as a severe impediment to overall franchise operation and performance, there is currently minimal understanding of the key factors that lead to these behaviors. Using a foundation of relational exchange theory, we construct and test a model that demonstrates how two distinct forms of trust, based upon perceptions of franchisor integrity and franchisor competence, are critical to explaining the roles that relational conflict and satisfaction play in influencing franchisee compliance. Implications of these findings are then demonstrated to have compelling relevance to the effective management of franchise systems.     

Asset specificity and behavioral uncertainty as moderators of the sales growth — Employment growth relationship in emerging ventures

Sales growth and employment growth are the two most widely used growth indicators for new ventures; yet, sales growth and employment growth are not interchangeable measures of new venture growth. Rather, they are related, but somewhat independent constructs that respond differently to a variety of criteria. Most of the literature treats this as a methodological technicality. However, sales growth with or without accompanying employment growth has very different implications for managers and policy makers. A better understanding of what drives these different growth metrics has the potential to lead to better decision making. To improve that understanding we apply transaction cost economics reasoning to predict when sales growth will be or will not be accompanied by employment growth. Our results indicate that our predictions are borne out consistently in resource-constrained contexts but not in resource-munificent contexts.     

Balancing the sequential logic of quality constructs in manufacturing-supplier relationships — Causes and outcomes

Manufacturers in business markets are experiencing a strong trend towards close versus distant relationships with suppliers. Three key relationship constructs in academic research are trust, commitment, and satisfaction. Although the relevant literature holds some evidence that trust and commitment are antecedent to satisfaction, the possibility that satisfaction plays a key mediation role between trust/commitment and other important outcomes (i.e., coordination, cooperation, and continuity) receives scant examination. This study tests this conceptual model by examining the relationships between manufacturers and suppliers. A random sample of small-to-medium-sized Norwegian manufacturers was contacted by phone in order to identify potential key informants. Shortly thereafter, a total of 581 surveys were mailed to the key informants. Two hundred and twelve surveys were returned, representing a response rate of 36.5%. Results support the conceptual model presented; trust and commitment relate positively to satisfaction; and satisfaction, in turn, relates positively to all three outcomes of coordination, cooperation, and continuity.     

The dynamics of experiential learning: Microprocesses and adaptation in a professional service INV

In international new ventures (INVs), experiential learning happens in quick succession and across a wide number of diverse contexts. Yet, we lack an empirical understanding of the microprocesses through which INVs learn and adapt in their foreign expansion. Understanding those microprocesses is important because timely adaptation can save the venture time and resources, thus promoting sustainable growth. In this study, we investigate the dynamics of experiential learning and adaptation in the internationalisation process of an INV in the professional service sector. Findings from our study illustrate that the firm applies deliberate experiential learning by developing, revising, and finalising criteria for important dimensions in the international growth process, and adapts its internationalisation practices accordingly. We further show that deliberate experiential learning is predicated on an actively and closely monitored learning process, involving critical evaluation, adjustment of criteria, and acceptance of affordable mistakes, as opposed to learning by default.     

Upstream internationalization process: Roles of social capital in creating exploratory capability and market performance

This paper investigates to what extent resource governance of international ventures affects dynamic capability and market performance in the high-tech firms’ internationalization process. We examine the non-equity-based international network collaborations of high-tech firms as forms of strategic resource seeking within the internationalization process. Within the context of upstream technology collaborations by international software and hardware firms, this paper proposes and empirically examines the impact of resource governance mechanisms (i.e. trust-building and behavioral monitoring) on the exploratory capabilities of firms. The findings indicate that building trust in the internationalization process of network ventures contributes to the firm-level exploratory capabilities and, in turn, market performance. Furthermore, this paper tests the moderating effects of structural capital on the capability–performance relationship. The relationship is stronger when network relationships existed before the inception of the international technology alliance. We also find a negative moderating effect from the existence of an actual alliance and from network duration on the relationship between exploratory capability and market performance. To this end, the longevity of the alliance may not always be something firms should aim for. The paper highlights the criticality of relational and structural capital in the internationalization process and the importance of exploratory capability for creating radical innovation in high-tech industries.     

Performance of international joint ventures in Turkey: perspectives of Western firms and Turkish firms

This study compares responses from Western partner firms and local partner firms from a sample of international joint ventures (IJVs) in Turkey, in order to analyse the performance of IJVs on a range of topics including overall performance, the relative importance of performance criteria, and actual performance in terms of various dimensions of expected performance. The results of the hypotheses tests indicate that while both groups of partner firms are equally satisfied in terms of overall IJV performance, Turkish partner firms are more satisfied than Western partner firms regarding comparison with home country operations and host country competitors. The study also finds that the relative importance of IJV performance criteria varies to a moderate extent between Western and Turkish partner firms, and that both groups of partner firms evaluate IJV performance equally favourably across most underlying dimensions of IJV performance.     

Slack resources in team learning and project performance

This study examines the effect of slack resources on the relationship between team learning and project performance. Regression analysis tests the hypotheses in a sample of 183 firms in Taiwan. The findings suggest that two assessments of team learning, exploitative learning and exploratory learning, associate positively with project performance. Exploratory learning relates positively to project performance as absorbed and unabsorbed slack resources increase. Thus, slack resources play a moderating role in the relationship between exploratory learning and project performance. Empirical results provide general support for the predictions. The article discusses managerial implications and future research directions.     

非试点地区农村信用合作社的行为异化及其制度创新

改革开放以来,我国农村信用合作社的改革不断出现反复,一直没有取得大的突破和进展,2003年下半年新一轮的试点改革在8个省市进行。本文简要分析和评价“2003试点改革方案”。指出非试点地区农村信用社目前所面临的制度困境以及由此引发的信用社行为的异化,结合实际提出了非试点地区农村信用社的制度创新主要依赖于理顺政府与农村信用社的关系,明晰信用社的产权,在此基础上完善信用社的治理结构,强化信用社的非营利性与互助性,完善内部控制制度,加强同业自律组织建设等等,从而实现农村信用社的制度创新与行为理性。     

Entrepreneurial strategic posture and learning effort in international ventures: The moderating roles of operational flexibilities

Drawing from the attention-based view, this article extends the study of international entrepreneurship by investigating how the contribution of international ventures’ entrepreneurial strategic posture to their actual learning efforts in foreign markets depends on various flexibilities that underlie their operations. The results from a sample of international Chinese ventures indicate that an entrepreneurial strategic posture enhances international learning effort more to the extent that the ventures possess greater cognitive and political flexibilities. Somewhat paradoxically, greater structural flexibility impedes the translation of an entrepreneurial strategic posture into international learning effort. The findings have important implications for the growing body of research that adopts an international new venture perspective.     

Transactional and institutional alignment of entry modes in transition economies. A survival analysis of joint ventures and wholly owned subsidiaries in Vietnam

How do partially aligned entry modes predicted through theoretically pluralistic frameworks perform in terms of longevity? We build on transaction costs and neo-institutional economics and use event history method and Vietnamese data on 3835 joint ventures and wholly owned subsidiaries established by foreign firms from 1987 to 2008 to answer this question. We find that survival rates for entry modes that are partially aligned to transactional and institutional factors differ for JV- and WOS-based entries. We provide new evidence for the predictive power of the transactional and institutional approach for entry mode choice, performance, and survival in transition economies.     

Case study competitions and perceptions of learning among undergraduate students in the United Arab Emirates

Higher education institutions are increasingly employing competitive formats such as case study competitions in business education to enhance students’ learning experience. The authors explore students’ perceptions and experiences regarding affective, cognitive, and skills development factors and whether these perceptions and experiences determine students’ participation in case study competitions in the United Arab Emirates. The authors attempt to contribute to the rather nascent body of literature on case study competitions. The results highlight statistically significant differences between perceived and actual learning with respect to cognitive and affective benefits. Furthermore, a significant positive association is found between participation in case study competitions and respondents’ perceptions and real experiences about various aspects of learning.