Author: Leung, Wai-on
Title: The effect of partner selection on Sino-foreign joint venture management team dynamics and performance
Degree: D.B.A.
Year: 2001
Subject: Joint ventures -- China -- Management
Hong Kong Polytechnic University -- Dissertations
Department: Department of Management
Pages: viii, 152 leaves : ill. ; 30 cm
Language: English
Abstract: International joint ventures (IJVs) are a dominant market entry and investment mode for multinational enterprises in developing countries. Past research highlighted some relationships between partner selection characteristics and IJV performance, yet there is no consensus regarding these. In this thesis, I introduce a framework and evaluate management team dynamics as the connective tissues between partner selection characteristics and IJV performance. In the framework, partner selection characteristics are conceptualized as antecedents of management team dynamics. Management team dynamics are, in turn, conceptualized as antecedents of IJV performance. The theoretical framework I draw on is based partly on Parkhe's (1993a) suggestion on integrated IJV research and partly on extant organization behavioral theories. I examined the framework empirically using the cross-sectional questionnaire survey data I collected from a sample of IJVs in Beijing and Shenzhen, PRC. The relationships of the variables and hypotheses in the framework were tested with correlation and regression techniques. The results of the analyses support that partner selection characteristics of business similarity, partner behavior similarity, language and goal congruence influence the management team dynamic process of trust, co-ordination, communication, and conflict. In turn, management team dynamics affect IJV performance. Among the management team dynamic variables, coordination influences IJV performance most significantly. The key contributions of this thesis are fourfold. First, this thesis is probably one of the first studies to have examined empirically management team dynamics as the connective tissues between partner selection characteristics and IJV performance. Second, the results highlight that partner selection characteristics exhibit little direct influence on IJV performance. In comparison, management team dynamics were found to have significant effect on IJV performance. Third, the study demonstrates that similarity in behaviors among partners and managers enhances management team dynamics, suggesting that the appointment of senior managers who understand or share the culture of local managers may have positive effect on IJV performance. Localization of senior positions and training may also assist in this process. Fourth, the findings may encourage further research to explore and uncover other connective tissues and missing links between partner selection characteristics and IJV outcomes.
Rights: All rights reserved
Access: restricted access

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