Strategic response to a volatile environment: The case of cross-cultural cooperative ventures

Yadong Luo, J. Justin Tan, Neale G. O'Connor

Research output: Contribution to journalArticlepeer-review

13 Scopus citations

Abstract

Unlike free-standing companies, joint ventures involve more complex governance structures and organizational systems. Because of interpartner dependence in the managerial process, it is more difficult for joint ventures to configure their strategies with environmental dynamics. Without such configuration, however, joint ventures will suffer from operational instability and resource misallocation. This study assesses the strategic response of joint ventures to a dynamic environment. Based on a survey of top managers in international joint ventures (IJVs) in China, it is found that managerial perceptions of increased environmental complexity and hostility are positively related to an Analyzer strategy. Proactive and Defensive strategies are either negatively or non-significantly linked with perceived environmental dynamics. Further, the Analyzer strategy is associated with superior performance for IJVs in the context of an emerging economy.

Original languageEnglish (US)
Pages (from-to)7-25
Number of pages19
JournalAsia Pacific Journal of Management
Volume18
Issue number1
DOIs
StatePublished - Jan 1 2001

Keywords

  • Environment volatility
  • Joint ventures
  • Strategic response

ASJC Scopus subject areas

  • Business and International Management
  • Economics, Econometrics and Finance (miscellaneous)
  • Strategy and Management

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