Achieving value co-creation through cooperation in international joint ventures : A two-level perspective

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Original languageEnglish
Article number102028
Journal / PublicationInternational Business Review
Online published13 Jul 2022
Publication statusOnline published - 13 Jul 2022

Abstract

How can international joint ventures (IJVs) enhance value co-creation? Using a resource-based view (RBV), this study examines whether partners’ cultural compatibility and parent companies’ asset complementarity foster top-level cooperation and/or operating-level cooperation in IJVs and investigates the underlying mechanisms (i.e., top-level goal alignment and operating-level goal alignment) in IJV relationships. This study also scrutinizes the differing impacts of top-level and operating-level cooperation on value co-creation in IJVs. The findings from a survey of 200 IJVs in China show that partners’ cultural compatibility positively affects top-level cooperation primarily through top-level goal alignment, while asset complementarity positively affects operating-level cooperation through operating-level goal alignment. Furthermore, operating-level cooperation has a stronger effect on value co-creation than top-level cooperation. This study offers fresh insights into IJV cooperation and value co-creation by introducing a two-level perspective and provides important managerial implications for the development of sustainable IJVs.

Research Area(s)

  • Asset complementarity, Cooperation, Goal alignment, Partners’ cultural compatibility, Resource-based view, Value co-creation