Technological knowledge, product relatedness, and parent control : The effect on IJV survival

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

24 Scopus Citations
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Author(s)

Detail(s)

Original languageEnglish
Pages (from-to)1166-1176
Journal / PublicationJournal of Business Research
Volume60
Issue number11
Online published16 May 2007
Publication statusPublished - Nov 2007
Externally publishedYes

Abstract

This article examines the relationships among parent firm technological knowledge, parent-IJV product relatedness, parent control over the IJV, and IJV survival. Combining the knowledge-based perspective and institutional theory, we argue that parent control itself does not necessarily lead to higher IJV survival; it contributes to IJV survival when the parent firm has a high level of technological knowledge, and when the IJV is product-related to this parent. Results obtained from 1038 Japanese IJVs based in China indicate that both equity control and managerial control of a Japanese parent had a positive interaction effect, with the parent's technological knowledge, on IJV survival. Equity control also exhibited a positive interaction effect with product relatedness. In a sub-sample of 354 Sino-Japanese IJVs containing local parent information, managerial control by the Chinese parent was found to have a positive interaction effect, with Chinese parent-IJV product relatedness, on IJV survival.

Research Area(s)

  • China, Cox regression, Equity control, IJV survival, Japan, Managerial control, Product relatedness, Technological knowledge