Multiparty cooperation and performance in international equity joint ventures

Yadong Luo, Seung Ho Park

Research output: Contribution to journalArticle

94 Scopus citations

Abstract

Previous studies have examined the relationship between cooperation and performance in international equity joint ventures (EJVs), mostly at the partner level. This study revisits the issue at multiple levels, and considers vertical and horizontal cooperation among the foreign partners, the local partner, and the venture management team. The study also examines how goal incongruence between partners and market uncertainty affect the tripartite relationships between cooperation and performance. The test results show a strong positive impact of cooperation between partners on performance as perceived both by the partners and by the venture management team. One partner's cooperation with the venture management team is perceived favorably by that party but not necessarily by the other party unless both partners share the same goal. Market uncertainty requires stronger cooperation at all levels to improve performance in EJVs.

Original languageEnglish (US)
Pages (from-to)142-160
Number of pages19
JournalJournal of International Business Studies
Volume35
Issue number2
DOIs
StatePublished - Mar 2004

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Keywords

  • Goal incongruence
  • International equity joint ventures
  • Multiparty cooperation

ASJC Scopus subject areas

  • Business and International Management
  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Strategy and Management
  • Management of Technology and Innovation

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