Social Ties and Partner Identification in Sino-Hong Kong International Joint Ventures

Abstract

Partner identification is an important and under-studied precursor to selection and eventual performance of international joint ventures (IJVs). The mechanics of the identification process were investigated in-depth across a sample of eighteen Sino-Hong Kong IJVs using the case study research method. The cross-case findings of this exploratory investigation support the idea that social networks provide a valuable resource for reducing IJV partner search costs. Specifically, the findings reveal that while weakly-linked bridge ties are valuable in identifying potential partners, searches based on strong ties tend to be shorter and provide a more robust basis for inter-partner cooperation.