Title
R&D intensity and international joint venture performance in an emerging market : moderating effects of market focus and ownership structure
Document Type
Journal article
Source Publication
Journal of International Business Studies
Publication Date
11-1-2007
Volume
38
Issue
6
First Page
944
Last Page
960
Abstract
In this study we examine the contingent relationship between R&D intensity and performance of international joint ventures (IJVs) in an emerging market context. Based on Teece's (1986) arguments regarding the appropriability of innovation, we identify two types of appropriability hazard related to IJVs R&D activities in this context: local-market-related and local-partner-related hazards. We argue that a positive relationship between R&D intensity and IJV performance is more likely to occur if these appropriability hazard can be mitigated. Results using a sample of manufacturing IJVs in China provide support for these arguments. We find that R&D intensity is positively related to performance in export market-focused IJVs but not in local market-focused IJVs. In addition, using a configuration approach, we find that R&D intensity is positively related to performance in IJVs that have an export market focus and in which the multinational companies (MNCs) have a majority ownership, but not in other market focus-ownership structure configurations. These findings contribute to our knowledge of R&D activities of MNCs overseas subsidiaries.
DOI
10.1057/palgrave.jibs.8400301
Print ISSN
00472506
Publisher Statement
Copyright © 2007, Macmillan Publishers Ltd
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Zhang, Y., Li, H., Hitt, M. A., Cui, G. (2007). R&D intensity and international joint venture performance in an emerging market: Moderating effects of market focus and ownership structure. Journal of International Business Studies, 38(6), 944-960. doi: 10.1057/palgrave.jibs.8400301
