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How long will the marriage of Sino-Foreign JVs in China last? A theoretical and empirical investigation

journal contribution
posted on 11.02.2015 by Ursula Ott, Xiaohui Liu, Trevor Buck
This paper studies the factors affecting the longevity of international joint ventures (IJVs) in China and investigates the strategic interactions of the players in an IJV (foreign parent, local parent and IJV management) by adopting game theory and using empirical analysis based on national perceptions of time horizons. The theoretical part shows equilibria for the games played by the parents. The empirical evidence, based on a sample of Chinese-US and EU IJVs, as well as Chinese-Japanese and South Korean IJVs, is consistent with the propositions derived from our theoretical models. Our empirical findings show that the longevity of an IJV is affected by senior management control. Access to local knowledge is also a crucial factor affecting longevity. Furthermore, the degree of long-term orientation (LTO) of the parents influences the longevity of Sino-Foreign IJVs. The contributions made by both foreign and local parent firms are also found to influence the longevity. © 2014.

History

School

  • Business and Economics

Department

  • Business

Published in

International Business Review

Volume

23

Issue

5

Pages

873 - 886

Citation

OTT, U.F., LIU, X. and BUCK, T., 2014. How long will the marriage of Sino-Foreign JVs in China last? A theoretical and empirical investigation. International Business Review, 23 (5), pp. 873 - 886.

Publisher

© Elsevier Ltd.

Version

VoR (Version of Record)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/

Publication date

2014

Notes

Closed access.

ISSN

0969-5931

Other identifier

S0969593114000067

Language

en

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