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

Ott, U. ORCID: 0000-0002-3469-0260, 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. ISSN 0969-5931

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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.

Item Type: Journal article
Publication Title: International Business Review
Creators: Ott, U., Liu, X. and Buck, T.
Publisher: Elsevier
Date: October 2014
Volume: 23
Number: 5
ISSN: 0969-5931
S0969593114000067Publisher Item Identifier
Divisions: Schools > Nottingham Business School
Record created by: Linda Sullivan
Date Added: 12 Nov 2018 11:18
Last Modified: 13 Nov 2018 08:39

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