Cross-Cultural Differences on International Joint Venture Research Writing - Sociology Assignment Help

Assignment Task

We define an IJV as including “two or more legally distinct organisations, each of which shares in the decision-making activities of the jointly owned entity” and originate from different nations (Geringer and Hebert, 1991, p.249). However, despite their popularity, many IJVs experience premature termination and unsatisfactory performance (Hennart and Zeng, 2002). This has received much attention in extant literature which has sought to explain this and found a key determinant of IJV survival to be cross-cultural differences between partners (Nippa and Reuer, 2019). 

Culture is defined as “the collective programming of the mind that distinguishes one category of people from another” (Hofstede et al., 2010, p.6). During cross-border interactions, cross-cultural differences in managerial practices become apparent and influence the ability of partners to collaborate to achieve the IJV’s goals (Malik and Zhao, 2013). However, our understanding of the effects of cultural differences on IJV performance has been limited due to the mixed results in extant literature. Some studies have found a positive effect, whilst others have found a negative effect or no relationship at all between the variables (Barkema and Vermeulen 1997; Pothukuchi et al., 2002; Hennart and Zeng, 2002; Malik and Zhao, 2013). 
 

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