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 journalArticle

13 Citations (Scopus)

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
StatePublished - 2001

Fingerprint

Venture
Joint ventures
Strategic response
International joint ventures
Governance structure
Managerial perceptions
Hostility
Emerging economies
Environmental complexity
Misallocation
Dynamic environment
China
Managers
Defensive strategy
Resources

Keywords

  • Environment volatility
  • Joint ventures
  • Strategic response

ASJC Scopus subject areas

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

Cite this

Strategic response to a volatile environment : The case of cross-cultural cooperative ventures. / Luo, Yadong; Tan, J. Justin; O'Connor, Neale G.

In: Asia Pacific Journal of Management, Vol. 18, No. 1, 2001, p. 7-25.

Research output: Contribution to journalArticle

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