This study addresses the negotiation effect in the context of cross-cultural joint ventures (JV) in a volatile environment. We examined how negotiation variables are linked to the subsequent performance of JV operations. Our analysis of 155 JVs suggests that topic inclusiveness and term specificity are positively related to venture performance. Length of negotiations and government involvement in negotiations have no main effect on performance but moderate the link between term specificity or topic inclusiveness and performance. When length of negotiations is longer or if government involvement is weaker, the performance effect of negotiations becomes stronger. Companies with longer cultural distance from the host country tend to arrange higher term specificity and higher topic inclusiveness to neutralize an unfavorable influence of cultural distance on performance.
- Joint ventures
ASJC Scopus subject areas
- Business and International Management
- Strategy and Management