سوابق و عواقب ناشی از همکاری های بین المللی قرارداد جوینت ونچر : دیدگاه تبادل اجتماعی

This paper assessed the antecedents and consequences of IJV partnerships on the basis of the social exchange paradigm. Based on the analysis of 94 joint ventures formed between Korean firms as a local partner and the US, European, and Japanese firms as a foreign partner, we ascertained the key structural and social components of trust–commitment partnerships and their contributions to IJV effectiveness. In addition, the trust–commitment partnerships were shown to be higher in joint ventures formed between Korean and Japanese companies than in those formed between Korean and Western (i.e. US, Europe) companies. This result raises the issue of a cultural influence on the IJV partnerships. Contrary to expectations, however, the competitive relationship between partners was shown not to exert a significant negative influence on both the trust–commitment partnerships and the effectiveness of IJVs. This result provides us with a meaningful implication to the selection of competitors as IJV partners.

Strategic alliances have become a highly popular strategy for coping with rapid changes in the global competitive environment as well as with resource constraints of firms. In this regard, joint ventures as a type of capital alliance represent a very useful mode, particularly for entry into foreign markets (Berdrow & Lane, 2003; Inkpen, 1996; Kogut, 1988; Lane & Beamish, 1990). Recently, the successful management of joint venture partnerships has been keenly concerned. For instance, Madhok (1995) and Madhok (2006) emphasized the necessity of shifting from an ownership issue (i.e., control) to a relational issue (i.e., trust) with regard to the successful management of IJVs. In this respect, he drew attention to the importance of researching the antecedents and consequences of trust-building in IJV partner relationships. Accordingly, the principal objective of this study is to fill this gap. In order to accomplish the research objective, we focused on the role of social capital, including trust and commitment between partners, in IJV success. As a consequence, we assessed the following two questions: (1) How do IJVs’ partners generate social capital, including mutual trust and commitment between themselves. (2) What is the outcome of social capital in the management of IJVs? The result will contribute validity to the social exchange paradigm within the context of the successful management of IJVs. In addition, we assessed the role of both the competitive position between partners and the nationality of each partner in IJV partnerships. Owing to the attributes of IJVs, these two factors influence the social inter-activity between the partners. Hence, the results will serve to draw our attention to the pivotal role of the factors like culture and competition in IJV partnerships. This paper consists of six integral parts: Section 2 is devoted to a literature review. The research model and hypotheses are demonstrated in Section 3. The research methodology is explained in Section 4. The research results are presented in Section 5. In Sections 6 and 7, the research results are discussed and some managerial implications are suggested.

This paper has discussed the antecedents and consequences of IJV partnerships and their impact on IJV effectiveness on the basis of the social exchange paradigm. Mutual trust and commitment were utilized as a proxy for social capital. Factors influencing the trust–commitment partnerships were categorized into two levels, namely the structural and social conditions suggested by Madhok (1995) and Madhok (2006). The effectiveness of IJV partnerships was measured by the level of relationship satisfaction between partners and the achievement of a joint venture's strategic objectives. On the basis of our analysis of 94 joint ventures formed between Korean firms as a local partner and the US, European, and Japanese firms as a foreign partner, some interesting results were discovered. First, among the structural components, the strategic bond and the compatibility of organizational culture were shown to perform important functions in the generation of trust and commitment between partners. In addition, it is interesting to note that resource complementarity was positively related to only commitment, but not to trust. This result is understandable, as resource complementarity is a result of the resource commitment of each partner. Second, among the social components, flexibility and two-way communication have been shown to be key factors for the trust–commitment partnerships, as anticipated. However, fairness was not related significantly to either trust or commitment. This result contrasts with previous findings on the basis of analysis of contractual business cases such as buyer-seller relationships (Johnson & Raven, 1996). However, our results with the IJVs are explicable. IJV partners are likely to consider sharing benefits and costs fairly, according to their equity ownerships. Therefore, each partner in an IJV would be likely to have more concern for other social components, such as flexibility and two-way communication, than for fairness with regard to trust and commitment building. Third, mutual trust and commitment exert a significant positive influence on joint venture effectiveness (i.e. relationship satisfaction, achievement of strategic objectives) as predicted. Hence, these results provide support to previous findings regarding the importance of trust or commitment building between partners in explaining IJV success (Demirbag & Mirza, 2000; Inkpen & Currall, 1997; Johnson et al., 1997; Sarkar et al., 1997). In general, these findings support the argument of Madhok (1995) and Madhok (2006) that IJV success is a function of both structural and social conditions and there is a need to shift from an ownership issue (i.e., control) to a relational issue (i.e., trust) with regard to the successful management of IJVs. Therefore, it is fair to say that our findings support the validity of the social exchange paradigm in the successful management of IJVs. Fourth, mutual trust and commitment have been shown to be more important in joint ventures formed between Korean and Japanese companies than between Korean and Western (i.e. US Europe) companies. This result is understandable. In Korea and Japan, trust and long-term business relationship are considered to be more important than in Western countries, such as the US and European nations, where legal and contractual relationship is emphasized more profoundly, as investigated by Henderson (1975). This result raises the cultural issue in IJV partnerships. Fifth, in contrast to expectations, the competitive relationship structure between partners exerts no significant negative influence on both the trust–commitment partnership and the effectiveness of IJVs. This is a very interesting outcome, as firms are supposedly reluctant to form business partnerships with their competitors. This finding may suggest the validity of cooperation with competitors in international business situations. Our findings provide somehow meaningful implications regarding the successful management of IJVs. First of all, the findings provide a guideline for successful partner selection. Indeed, it is very important for firms to select a partner, particularly at the formation stage of IJVs, who satisfies the structural conditions, such as the existence of a strategic bond and the compatibility of an organizational culture. In addition, firms also should bear in mind that resource complementarity is a crucial structural condition with regard to commitment building between the partners. The findings also provide a meaningful guideline for successful partner relationships. In this regard, firms need to understand that the social components, including flexibility and two-way communication, should be fulfilled in order to strengthen mutual trust and commitment between the partners at the operational stage of joint ventures. As conflicts between partners always occur in IJV operations, it is hard to expect that trust and commitment can be built between the partners without successful conflict management (Ding, 1997; Morris et al., 1998). One of the best ways of solving the conflicts is to maintain the flexibility and two-way communication between the partners. In addition, firms should acknowledge that according to each partner's nationality the importance of the trust–commitment partnerships might differ. For instance, it has been noted that Japanese firms have more concern for trust-based long-term relationships in their business relations than do American and European firms. In the US and Europe, legal and contractual relationships tend to be a relatively more important concern (Henderson, 1975; Peterson & Shimada, 1978). Hence, when Western firms, including US and European firms, plan to form a business partnership with Asian firms, such as Korean and Japanese firms, it is recommended that they should attempt to build trust-based long-term relationships with their Asian partners. Finally, cooperation and competition among firms have now become a common phenomenon. Therefore, firms should bear in mind that it is important to select competitors as their IJV partners who satisfy the structural conditions (i.e. strategic bond, compatibility of organization culture) at the formation stage of IJVs.