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    Interactive effects of information exchange, relationship capital and environmental uncertainty on international joint venture (IJV) performance: An emerging markets perspective

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    Access Status
    Open access
    Authors
    Kwok, F.
    Sharma, Piyush
    Gaur, S.
    Ueno, A.
    Date
    2018
    Type
    Journal Article
    
    Metadata
    Show full item record
    Citation
    Kwok, F. and Sharma, P. and Gaur, S. and Ueno, A. 2018. Interactive effects of information exchange, relationship capital and environmental uncertainty on international joint venture (IJV) performance: An emerging markets perspective. International Business Review. 28 (50): Article No. 101481.
    Source Title
    International Business Review
    DOI
    10.1016/j.ibusrev.2018.02.008
    ISSN
    0969-5931
    School
    School of Marketing
    URI
    http://hdl.handle.net/20.500.11937/66425
    Collection
    • Curtin Research Publications
    Abstract

    Prior research on the role of international joint ventures (IJV) in the emerging markets generally ignores the impact of information exchange on IJV performance as well as the mediating role of relationship capital (a key measure of competitive dynamics and co-evolution) and the moderating impact of environmental uncertainty in this process. This paper addresses these important research gaps by exploring the direct effect of information exchange on IJV performance as well as indirect (mediated) effect through mutual trust and reciprocal commitment, two key components of relationship capital. In addition, this paper investigates the role of environmental uncertainty as a moderator of these mediating effects. Results from a study of 205 contractual IJVs in China, a highly competitive and dynamic emerging market, show that foreign and local partners collaborate and co-evolve through regular information exchange that helps them build relationship capital with each other in the form of mutual trust and reciprocal commitment, which in turn leads to better IJV performance. In addition, environmental uncertainty negatively moderates (weakens) the positive effects of information exchange on mutual trust and reciprocal commitment but not their impact on IJV performance. The authors discuss the implications of these findings for future research on the role of relationship capital in the successful formation and management of IJVs in the emerging markets.

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