Growth and Survival of International Joint Ventures: An External-Internal Legitimacy Perspective

By J. Lu, Dean Xu. 2006

206 citations recorded by the source corpus.

The authors examine the growth and survival of international joint ventures (IJVs) from a legitimacy perspective. In a sample of 291 Sino-Japanese joint ventures in China, they found that Chinese parent age, Chinese parent size, and IJV industry relatedness to either parent had a positive effect on IJV growth and/or survival. However, IJV industry relatedness to both parents led to lower rates of IJV growth and survival. The findings highlight the importance for IJVs to obtain both external and internal legitimacy, as well as the difficulties IJVs face in acquiring internal legitimacy from both parents simultaneously.

Subfields: Accounting, Organizational Behavior and Human Resource Management, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/b0deeda1956923ffeda5bb0a302014a8cea3e5c6

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. K. Meyer
2. Mike W. Peng
3. Dean Xu
4. Saul Estrin
5. Robert S. Nason
6. Sea-Jin Chang
7. Yuan Ding
8. Hua Zhang

In Organizational Behavior and Human Resource Management

1. K. Meyer
2. Hong Ren
3. Kwangho Kim
4. Barbara Gray
5. Robert S. Nason
6. Saul Estrin
7. Sea-Jin Chang
8. Dean Xu

In Strategy and Management

1. K. Meyer
2. Dean Xu
3. Mike W. Peng
4. Saul Estrin
5. Sea-Jin Chang
6. Yuan Ding
7. Hua Zhang
8. Jing Li

Citations in the corpus

• LINKING THEORY AND CONTEXT: "STRATEGY RESEARCH IN EMERGING ECONOMIES" AFTER WRIGHT ET AL. (2005) (2012, unknown): “Thus, older and larger partners from a related industry make greater contributions to a venture’s performance (Lu and Xu, 2006), as do local partners affiliated with a regional business group (Lu and Ma, 2008).”
• The Impact of Institutional and Human Resource Distance on International Entry Strategies (2009, background): “Institutional sociology has looked at the effects of, for instance, mimetic behaviour and legitimacy (Delios et al., 2008; Kostova and Roth, 2002; Lu, 2002; Lu and Xu, 2006).”
• Overcoming distrust: How state-owned enterprises adapt their foreign entries to institutional pressures abroad (2014, background): “First, we contribute to the literature on institutional pressures pertaining to MNEs (Kostova et al., 2008; Lu & Xu, 2006; Yiu & Makino, 2002).”
• Performance of International Joint Ventures: What Factors Really Make a Difference and How? (2009, methodology): “…in both profitability measures (e.g., ROI or asset turnover) and market performance measures (e.g., market share) as preferred approaches to IJV performance (J. W. Lu & Xu, 2006; Luo, 2002a, 2002b, 2005, 2007a, 2008; Robins, Tallman, and Fladmoe-Lindquist, 2002; Zhang, Li, Hitt, & Cui, 2007).”
• An Assessment of Resource-Based Theorizing on Firm Growth and Suggestions for the Future (2018, background): “42 Journal of Management / January 2018 Authors Year Sample Size Country Versatile / VRIN Growth Measure Covin, Green, & Slevin 2006 110 USA Versatile, VRIN Sales Covin, Slevin, & Heeley 2000 103 USA Versatile, VRIN Sales Danis, Chiaburu, & Lyles 2010 175,182 Hungary Versatile, VRIN Index Datta, Gut”
• The challenge for Mondragon: Searching for the cooperative values in times of internationalization (2014, background): “Diverse organizational approaches to internationalization may also imply foreign direct investment, such as acquisitions and mergers, with their related implications (Lu and Xu, 2006; Tong et al., 2008).”
• Spillovers and competition among foreign and local firms in China (2008, background): “In addition, local firms may possess local knowledge that is not immediately accessible to foreign firms, or may be able to benefit from government policies and social networks that are locally embedded (Makino and Delios, 1996; Lu and Xu, 2006).”