Title

The effect of trust on international joint venture performance in China

Document Type

Journal article

Source Publication

Journal of International Management

Publication Date

12-1-2007

Volume

13

Issue

4

First Page

430

Last Page

448

Keywords

China, International joint ventures, Trust

Abstract

The role of trust between the parent companies of international joint ventures (IJVs) is re-examined, and it is suggested that trust between parents is not only a major predictor of the achievement of financial and non-financial goals by IJVs as reported in the literature, but also moderates the relationship between IJV performance and certain contextual factors. Based on the responses of senior executives of IJVs and their parent companies in China, it is confirmed that trust influences IJV performance. The moderating effects of trust on the relationships between IJV performance and local reliance and the experience of executives were confirmed for the senior executive sample, but the moderating effect of cultural distance was not consistent between the firm-level and country-level measures. There was no significant result regarding these moderating relationships for the parent sample, except local reliance.

DOI

10.1016/j.intman.2007.03.004

Print ISSN

10754253

E-ISSN

18730620

Publisher Statement

Copyright © 2007 Elsevier Inc

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Full-text Version

Publisher’s Version

Recommended Citation

Ng, P. W.-K., Lau, C.-M., & Nyaw, M.-K. (2007). The effect of trust on international joint venture performance in China. Journal of International Management, 13(4), 430-448. doi: 10.1016/j.intman.2007.03.004