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
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
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