A Longitudinal Study of IJV Performance in Eastern Europe

Why do some international joint ventures (IJV) succeed while others fail? Scholars suggest that cultural differences and trust influence IJV success. Others maintain that ownership and control structures explain performance differences. Still others imply that learning and governmental actions create these differences. We use a longitudinal methodology to examine the impact of all these factors on IJV performance for a sample of Eastern/Western European IJVs. We found that culture, trust, learning, ownership, control and governments all contribute to the success or failure of IJVs.http://deepblue.lib.umich.edu/bitstream/2027.42/39625/3/wp239.pd

A Longitudinal Study of IJV Performance in Eastern Europe

Why do some international joint ventures (IJV) succeed while others fail? Scholars suggest that cultural differences and trust influence IJV success. Others maintain that ownership and control structures explain performance differences. Still others imply that learning and governmental actions create these differences. We use a longitudinal methodology to examine the impact of all these factors on IJV performance for a sample of Eastern/Western European IJVs. We found that culture, trust, learning, ownership, control and governments all contribute to the success or failure of IJVs.joint venture, performance, trust, culture, learning, key stakeholder, onwnership, control

Once bitten, not necessarily shy? Determinants of foreign market re-entry commitment strategies

We investigate foreign market re-entry commitment strategies, namely the changes in the modes of operation (commitment) undertaken by multinational enterprises (MNEs) as they return to foreign markets from which they had previously exited. We combine organisational learning theory with the institutional change literature to examine the antecedents of re-entry commitment strategies. From an analysis of 1,020 re-entry events between 1980 and 2016, we find that operation mode prior to exit is a strong predictor of subsequent re-entry mode. Contrary to the predictions of learning theory, we did not find support for the effect of experience accumulated during the initial market endeavour on the re-entry commitment strategies of MNEs. In turn, exit motives significantly impact on the re-entrants' decision to re-enter via a different mode of operation, by either increasing or decreasing their commitment to the market. We show that re-entrants do not replicate unsuccessful operation mode strategies if they had previously underperformed in the market. When favourable host institutional changes occur during the time-out period re-entrants tend to increase commitment in the host market irrespective of the degree of prior experience accumulated in the market

Institutional, cultural and transaction cost influences on entry mode choice and performance

In this study, we examine foreign market entry mode choice and firm performance for a sample of Euro-pean Union firms. Examining both financial and non-financial perfor-mance measures, we attempt to de-termine if firms that select their en-try mode based on transaction cost, institutional context, and cultural context variables perform better than firms that make other mode Research efforts in the area of interna-tional entry mode selection have tended to concentrate on transaction cost explanations (Makino and Neupert

Explaining the National Cultural Distance Paradox

Past studies of the relationship between national cultural distance and entry mode choice have produced conflicting results. Some scholars find cultural distance associated with choosing wholly owned modes; others find cultural distance linked to a preference for joint ventures. In this paper we provide both theoretical and empirical evidence to explain the discrepant findings and thus, help to resolve the national cultural distance paradox.© 2001 JIBS. Journal of International Business Studies (2001) 32, 177–189

Institutional, Cultural and Transaction Cost Influences on Entry Mode Choice and Performance

In this study, we examine foreign market entry mode choice and firm performance for a sample of European Union firms. Examining both financial and non-financial performance measures, we attempt to determine if firms that select their entry mode based on transaction cost, institutional context, and cultural context variables perform better than firms that make other mode choices. We found that mode choice did matter. Firms whose mode choice could be predicted by the extended transaction cost model performed significantly better, on both financial and non-financial measures, than did firms whose mode choice could not be predicted by the extended transaction cost model. Implications for future research are discussed.© 2002 JIBS. Journal of International Business Studies (2002) 33, 203–221