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International Joint Venture Performance: Impact of Performance Measures and Foreign Parent, Target Country and Investment Specific Variables on Performance

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Economics and Management of Networks

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

Abstract

The past three decades have witnessed a growing theoretical and managerial interest in international joint ventures (IJVs). Of growing interest has especially been the analysis of IJV performance. The previous studies have indicated very varying results about IJV performance and determinants of IJV performance. Fourteen hypotheses of the impact of foreign parent, target country, and investment strategy specific variables on performance were developed and tested. In a central role in the study was also the question do the results depend on the measure of performance? As the measures of performance were selected: longevity, survival, and stability. The empirical part of the paper is based on over 720 IJVs made by Finnish firms. The most significant variables were the international experience and the degree of diversification of the Finnish firms, unit unrelatedness, and the individualism dimension of culture. The results indicated relatively much differences depending on measure of performance.

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Author information

Authors and Affiliations

  1. International Marketing, Department of Marketing, University of Vaasa, P.O.Box 700, 65101, Vaasa, Finland

    Jorma Larimo (Professor)

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  1. Jorma Larimo
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Editors and Affiliations

  1. IGR-IAE, University of Rennes 1, 11 rue J. Macé CS 70803, 35708, Rennes, Cedex 7, France

    Gérard Cliquet

  2. Faculty of Business and Information Technology, Department of Business and Management, University of Kuopio, Mikrokatu 1F, 70211, Kuopio, Finland

    Mika Tuunanen

  3. RSM Erasmus University, Burg.Oudlaan 50, Room T8-56, 3062 PA, Rotterdam, The Netherlands

    George Hendrikse (Chair Economics of Organization) (Chair Economics of Organization)

  4. Center of Business Studies, University of Vienna, Brünner Str. 72, 1210, Vienna, Austria

    Josef Windsperger

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© 2007 Physica-Verlag Heidelberg

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Larimo, J. (2007). International Joint Venture Performance: Impact of Performance Measures and Foreign Parent, Target Country and Investment Specific Variables on Performance. In: Cliquet, G., Tuunanen, M., Hendrikse, G., Windsperger, J. (eds) Economics and Management of Networks. Contributions to Management Science. Physica-Verlag HD. https://doi.org/10.1007/978-3-7908-1758-4_18

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