Stimulating Exchange in International Joint Ventures: An Attachment based View

Institutional, Cultural and Transaction Cost Influences on Entry Mode Choice and Performance In this study, we examine foreign market entry mode choice and firm performance for a sample of European Union firms. Examining both financial and non-financial performance measures, we attempt to determine if firms that select their entry mode based on transaction cost, institutional context, and cultural context variables perform better than firms that make other mode choices. We found that mode choice did matter. Firms whose mode choice could be predicted by the extended transaction cost model performed significantly better, on both financial and non-financial measures, then did firms whose mode choice could not be predicted by the extended transaction cost model. Implications for future research are discussed

National and Organizational Culture Differences and International Joint Venture Performance This study examines the effect of dimensions of national and organizational culture differences on international joint venture (IJV) performance. Based on data from a survey of executives from joint ventures between Indian partners and partners from other countries, we found that the presumed negative effect from culture distance on IJV performance originates more from differences in organizational culture than from differences in national culture