Theses and Dissertations - UTB/UTPA
Factors affecting learning effectiveness in international joint ventures (IJV): An empirical analysis of Indian IJVs
Date of Award
Doctor of Philosophy (PhD)
Dr. Ercan G. Nasif
Dr. Jane LeMaster
Dr. Angelica Cortes
Increasing globalization of the business environment has prompted companies to form cross-border alliances. The need to form joint ventures is evident from the increase in the number of international joint ventures (IJV) in the US as well as in other nations. Researchers are also attempting to identify relationships that foster longevity in IJVs. This study contributes to the research in the field of IJVs by examining issues relating to the learning effectiveness of IJVs. Research (Harrigan, 1985; Kogut, 1998; Beamish, 1994) has shown that there are three main approaches for joint venture formation, which are transaction cost approach, strategic behavior approach, and organizational learning approach. This paper focused on the organizational learning approach. Inkpen (1995) states that learning does take place in all IJVs. It is, therefore, important to understand the variables that cultivate effective learning. This study examined learning effectiveness as being dependent on organizational culture, organizational trust, partner commitment to the IJV, age of the IJV, and cultural similarity between partners in the IJV. Literature has provided evidence that these variables are important contributors to the effectiveness of organizational learning (Fiol and Lyles, 1985; Simons, 1995; Sollman, 1995; Kramer and Tyler, 1996).
This study was conducted on Indian IJVs. The data was collected from the top 1000 IJVs based on dollar sales in India (500 Asian and 500 non-Asian IJVs). The survey instrument, which consisted of a culture measure, a trust measure, a commitment measure, a learning effectiveness measure, and relevant open ended questions regarding age and cultural similarity, was administered through mail to the top Indian official in the IJV. Statistical analyses of 133 responses out of 1000 received from top-level Indian officials in Indian IJVs suggest that trust, commitment, age of the IJV, and organizational culture are all positively related to learning effectiveness in Indian IJVs. The findings also suggest differences in the level of trust and the level of commitment based on different types of organizational culture. The overall findings suggest that learning effectiveness is dependent on trust, commitment, age of the IJV, and the organizational culture of the Indian parent. This study also indicates that national cultural differences between the IJV partners do not seem to affect the level of learning that takes place in the Indian IJVs. This research will assist not only researchers in developing new theories and integrating old ones, but also help practitioners in understanding the role of organizational culture on learning effectiveness. Organizations can identify the types of culture that foster effective learning and attempt to incorporate them in order to succeed in learning from their partners. This research will also add to the literature that focuses on developing countries and encourage further research in other developing nations (e.g., Latin American nations and African nations). Finally, the study discusses the managerial implications of the findings and provides direction for future research.
University of Texas-Pan American
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