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Author: | Mohr, A.T. Puck, J.F. |
Title: | Managing functional diversity to improve the performance of international joint ventures |
Journal: | Long Range Planning
2005 : APR, VOL 38:2, p. 163-182 |
Index terms: | Management Managers Companies Joint business ventures Strategy Planning Germany China |
Freeterms: | Partnerships |
Language: | eng |
Abstract: | International Joint Ventures (IJVs) are very important for companies to expand their activities and exploit business opportunities abroad. This study focuses on functional diversity (henceforth as: f-div.), that is, differences in business practices btw. foreign and local companies, and its influence (here as: infl.) on IJV performance. The infl. of the f-div. on the performance of IJVs is investigated. It is also discussed how companies can moderate this infl. through adaptation, trust commitment and communication. Hypotheses are formulated and empirically tested using data gathered through a questionnaire survey of managers of German-Chinese IJVs. The results show that although f-div. has a negative impact on IJV performance, managers can influence the magnitude of this impact. |
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