A Configurational Analysis of International Joint Ventures

A stream of research has focused on the ownership shares that partner companies take in international joint ventures [IJVs] and the leverage this may provide for control and performance. This research has normally adopted a `variance' approach, which examines `independent' variables as potential predictors of the focal phenomenon. The variance approach has yielded reasonably consistent results for the relationship between IJV ownership and control, but not in respect of performance. In searching for the optimum predictive model for whole samples, the variance approach risks overlooking inter-case nuances that may result from somewhat different configurations of variables. An alternative approach seeks to explore how and why variables configure together in different combinations. This paper draws on a study of 20 Sino-UK IJVs and their parent companies. It proceeds from a conventional variance analysis to identify different IV configurations. These configurations can be understood in the light of each IV's formative context, and they relate to performance in different ways. Propositions deriving from the study are offered as guidelines for further research.

[1]  B. Gray,et al.  Bargaining Power, Management Control, and Performance in United States-China Joint Ventures: A Compa , 1994 .

[2]  Stephen Tallman,et al.  Control and Performance in International Joint Ventures , 1997 .

[3]  J. M. Geringer,et al.  Control and Performance of International Joint Ventures , 1989 .

[4]  Lawrence B. Mohr,et al.  Explaining organizational behavior , 1982 .

[5]  Henry W. Lane,et al.  The Psychic Distance Paradox , 1996 .

[6]  Mona V. Makhija,et al.  The Relationship Between Control and Partner Learning in Learning-Related Joint Ventures , 1997 .

[7]  David J. Miller,et al.  Configurations of strategy and structure: Towards a synthesis , 1986 .

[8]  J. M. Geringer,et al.  Strategic Determinants of Partner Selection Criteria in International Joint Ventures , 1991 .

[9]  Paul W. Beamish,et al.  Performance and Survival of Joint Ventures with Non-Conventional Ownership Structures , 1998 .

[10]  John Child,et al.  Predicting the Performance of International Joint Ventures: An Investigation in China* , 2003 .

[11]  David Ernst,et al.  Is your strategic alliance really a sale , 1995 .

[12]  D. Pugh.  An Empirical Taxonomy of Structures of Work Organizations. , 1969 .

[13]  Farok J. Contractor,et al.  Ownership Patterns of U.S. Joint Ventures Abroad and the Liberalization of Foreign Government Regulations in the 1980s: Evidence from the Benchmark Surveys , 1990 .

[14]  William H. Glick,et al.  Fit, Equifinality, and Organizational Effectiveness: A Test of Two Configurational Theories , 1993 .

[15]  K. Tan,et al.  Control and Performance in Sino-Foreign Equity Joint Ventures , 2000 .

[16]  Mike W. Peng,et al.  Business strategies in transition economies , 2001 .

[17]  Andrew C. Inkpen,et al.  KNOWLEDGE, BARGAINING POWER, AND THE INSTABILITY OF INTERNATIONAL JOINT VENTURES , 1997 .

[18]  Y. Doz,et al.  Alliance Advantage: The Art of Creating Value Through Partnering , 1998 .

[19]  J. Child,et al.  National and Transnational Effects in International Business: Indications from Sino-Foreign Joint Ventures(1) , 2001 .

[20]  Neal Schmitt,et al.  Configurations of Organizational Effectiveness and Efficiency , 1993 .

[21]  Yanni Yan.  International Joint Ventures in China: Ownership, Control and Performance , 1999 .

[22]  Yigang Pan,et al.  THE FORMATION OF JAPANESE AND U.S. EQUITY JOINT VENTURES IN CHINA , 1997 .

[23]  J. Killing,et al.  Strategies for joint venture success , 1983 .

[24]  D. Lecraw.  Bargaining Power, Ownership, and Profitability of Transnational Corporations in Developing Countries , 1984 .

[25]  Arvind Parkhe.  “Messy” Research, Methodological Predispositions, and Theory Development in International Joint Ventures , 1993 .

[26]  Jean-Louis Schaan,et al.  How to Control a Joint Venture Even as a Minority Partner , 1988 .

[27]  Donald E. Hatfield,et al.  THE EFFECTS OF CORPORATE RESTRUCTURING ON AGGREGATE INDUSTRY SPECIALIZATION , 1996 .

[28]  J. R. French,et al.  The bases of social power. , 1959 .

[29]  Paul W. Beamish,et al.  The Characteristics of Joint Ventures in the People's Republic of China , 1993 .

[30]  Rosalie L. Tung.  Managing cross‐national and intra‐national diversity , 1993 .

[31]  A. Tsui,et al.  Configurational Approaches to Organizational Analysis , 1993 .

[32]  Yadong Luo,et al.  Partner Selection and Venturing Success: The Case of Joint Ventures with Firms in the People's Republic of China , 1997 .

[33]  Benjamin Gomes-Casseres,et al.  Firm Ownership Preferences and Host Government Restrictions: An Integrated Approach , 1990 .

[34]  A. Madhok.  COST, VALUE AND FOREIGN MARKET ENTRY MODE: THE TRANSACTION AND THE FIRM , 1997 .

[35]  John Child,et al.  Organizations As Adaptive Systems in Complex Environments: the Case of China , 1999 .

[36]  Yigang Pan.  Influences on Foreign Equity Ownership Level in Joint Ventures in China , 1996 .

[37]  Wilfried R. Vanhonacker,et al.  Entering China: an unconventional approach. , 1997, Harvard business review.

[38]  C. C. Snow,et al.  Organizational Configurations and Performance: A Comparison of Theoretical Approaches , 1993 .

[39]  K. R. Harrigan.  Strategies for joint ventures , 1985 .

[40]  Jeannie L. Johnson,et al.  Japanese and Local Partners Commitment to IJVs: Psychological Consequences of Outcomes and Investments in the IJV Relationships , 1995 .

[41]  G. Hamel.  Competition for competence and interpartner learning within international strategic alliances , 1991 .

[42]  Shaomin Li,et al.  The Impact of Order and Mode of Market Entry on Profitability and Market Share , 1999 .

[43]  D. Ernst,et al.  Collaborating to compete : using strategic alliances and acquisitions in the global marketplace , 1993 .