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Technological knowledge, product relatedness, and parent control: The effect on IJV survival

By D Xu and JW Lu

Abstract

This article examines the relationships among parent firm technological knowledge, parent-IJV product relatedness, parent control over the IJV, and IJV survival. Combining the knowledge-based perspective and institutional theory, we argue that parent control itself does not necessarily lead to higher IJV survival; it contributes to IJV survival when the parent firm has a high level of technological knowledge, and when the IJV is product-related to this parent. Results obtained from 1038 Japanese IJVs based in China indicate that both equity control and managerial control of a Japanese parent had a positive interaction effect, with the parent's technological knowledge, on IJV survival. Equity control also exhibited a positive interaction effect with product relatedness. In a sub-sample of 354 Sino-Japanese IJVs containing local parent information, managerial control by the Chinese parent was found to have a positive interaction effect, with Chinese parent-IJV product relatedness, on IJV survival. © 2007 Elsevier Inc. All rights reserved.link_to_subscribed_fulltex

Topics: Cox regression, IJV survival, Japan, Managerial control, Product relatedness, Technological knowledge, China, Equity control
Publisher: 'Elsevier BV'
Year: 2007
DOI identifier: 10.1016/j.jbusres.2006.08.008
OAI identifier: oai:hub.hku.hk:10722/85853
Provided by: HKU Scholars Hub
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