The effect of trust on international joint venture performance in China

Wai Kit, Paul NG, Chung Ming LAU, Mee Kau NYAW

Research output: Journal PublicationsJournal Article (refereed)

25 Citations (Scopus)

Abstract

The role of trust between the parent companies of international joint ventures (IJVs) is re-examined, and it is suggested that trust between parents is not only a major predictor of the achievement of financial and non-financial goals by IJVs as reported in the literature, but also moderates the relationship between IJV performance and certain contextual factors. Based on the responses of senior executives of IJVs and their parent companies in China, it is confirmed that trust influences IJV performance. The moderating effects of trust on the relationships between IJV performance and local reliance and the experience of executives were confirmed for the senior executive sample, but the moderating effect of cultural distance was not consistent between the firm-level and country-level measures. There was no significant result regarding these moderating relationships for the parent sample, except local reliance.
Original languageEnglish
Pages (from-to)430-448
Number of pages19
JournalJournal of International Management
Volume13
Issue number4
DOIs
Publication statusPublished - 1 Dec 2007

Fingerprint

China
Joint venture performance
International joint ventures
Parent company
Moderating effect
Predictors
Cultural distance
Contextual factors

Keywords

  • China
  • International joint ventures
  • Trust

Cite this

NG, Wai Kit, Paul ; LAU, Chung Ming ; NYAW, Mee Kau. / The effect of trust on international joint venture performance in China. In: Journal of International Management. 2007 ; Vol. 13, No. 4. pp. 430-448.
@article{dbdcd03ee09c4d1ebd7484de95d61a54,
title = "The effect of trust on international joint venture performance in China",
abstract = "The role of trust between the parent companies of international joint ventures (IJVs) is re-examined, and it is suggested that trust between parents is not only a major predictor of the achievement of financial and non-financial goals by IJVs as reported in the literature, but also moderates the relationship between IJV performance and certain contextual factors. Based on the responses of senior executives of IJVs and their parent companies in China, it is confirmed that trust influences IJV performance. The moderating effects of trust on the relationships between IJV performance and local reliance and the experience of executives were confirmed for the senior executive sample, but the moderating effect of cultural distance was not consistent between the firm-level and country-level measures. There was no significant result regarding these moderating relationships for the parent sample, except local reliance.",
keywords = "China, International joint ventures, Trust",
author = "NG, {Wai Kit, Paul} and LAU, {Chung Ming} and NYAW, {Mee Kau}",
year = "2007",
month = "12",
day = "1",
doi = "10.1016/j.intman.2007.03.004",
language = "English",
volume = "13",
pages = "430--448",
journal = "Journal of International Management",
issn = "1075-4253",
publisher = "Elsevier Inc.",
number = "4",

}

The effect of trust on international joint venture performance in China. / NG, Wai Kit, Paul; LAU, Chung Ming; NYAW, Mee Kau.

In: Journal of International Management, Vol. 13, No. 4, 01.12.2007, p. 430-448.

Research output: Journal PublicationsJournal Article (refereed)

TY - JOUR

T1 - The effect of trust on international joint venture performance in China

AU - NG, Wai Kit, Paul

AU - LAU, Chung Ming

AU - NYAW, Mee Kau

PY - 2007/12/1

Y1 - 2007/12/1

N2 - The role of trust between the parent companies of international joint ventures (IJVs) is re-examined, and it is suggested that trust between parents is not only a major predictor of the achievement of financial and non-financial goals by IJVs as reported in the literature, but also moderates the relationship between IJV performance and certain contextual factors. Based on the responses of senior executives of IJVs and their parent companies in China, it is confirmed that trust influences IJV performance. The moderating effects of trust on the relationships between IJV performance and local reliance and the experience of executives were confirmed for the senior executive sample, but the moderating effect of cultural distance was not consistent between the firm-level and country-level measures. There was no significant result regarding these moderating relationships for the parent sample, except local reliance.

AB - The role of trust between the parent companies of international joint ventures (IJVs) is re-examined, and it is suggested that trust between parents is not only a major predictor of the achievement of financial and non-financial goals by IJVs as reported in the literature, but also moderates the relationship between IJV performance and certain contextual factors. Based on the responses of senior executives of IJVs and their parent companies in China, it is confirmed that trust influences IJV performance. The moderating effects of trust on the relationships between IJV performance and local reliance and the experience of executives were confirmed for the senior executive sample, but the moderating effect of cultural distance was not consistent between the firm-level and country-level measures. There was no significant result regarding these moderating relationships for the parent sample, except local reliance.

KW - China

KW - International joint ventures

KW - Trust

UR - http://commons.ln.edu.hk/sw_master/2419

U2 - 10.1016/j.intman.2007.03.004

DO - 10.1016/j.intman.2007.03.004

M3 - Journal Article (refereed)

VL - 13

SP - 430

EP - 448

JO - Journal of International Management

JF - Journal of International Management

SN - 1075-4253

IS - 4

ER -