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

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...

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Main Authors: Kwok, F., Sharma, Piyush, Gaur, S., Ueno, A.
Format: Journal Article
Published: Elsevier 2018
Online Access:http://hdl.handle.net/20.500.11937/66425
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author Kwok, F.
Sharma, Piyush
Gaur, S.
Ueno, A.
author_facet Kwok, F.
Sharma, Piyush
Gaur, S.
Ueno, A.
author_sort Kwok, F.
building Curtin Institutional Repository
collection Online Access
description 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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spelling curtin-20.500.11937-664252021-03-04T03:39:02Z Interactive effects of information exchange, relationship capital and environmental uncertainty on international joint venture (IJV) performance: An emerging markets perspective Kwok, F. Sharma, Piyush Gaur, S. Ueno, A. 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. 2018 Journal Article http://hdl.handle.net/20.500.11937/66425 10.1016/j.ibusrev.2018.02.008 Elsevier fulltext
spellingShingle Kwok, F.
Sharma, Piyush
Gaur, S.
Ueno, A.
Interactive effects of information exchange, relationship capital and environmental uncertainty on international joint venture (IJV) performance: An emerging markets perspective
title Interactive effects of information exchange, relationship capital and environmental uncertainty on international joint venture (IJV) performance: An emerging markets perspective
title_full Interactive effects of information exchange, relationship capital and environmental uncertainty on international joint venture (IJV) performance: An emerging markets perspective
title_fullStr Interactive effects of information exchange, relationship capital and environmental uncertainty on international joint venture (IJV) performance: An emerging markets perspective
title_full_unstemmed Interactive effects of information exchange, relationship capital and environmental uncertainty on international joint venture (IJV) performance: An emerging markets perspective
title_short Interactive effects of information exchange, relationship capital and environmental uncertainty on international joint venture (IJV) performance: An emerging markets perspective
title_sort interactive effects of information exchange, relationship capital and environmental uncertainty on international joint venture (ijv) performance: an emerging markets perspective
url http://hdl.handle.net/20.500.11937/66425