Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
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The Influence of Cultural Distance on the Performance of International Joint Venture: Focusing on the Moderating Effects of the Constructive Conflict Resolution Techniques and the Competitive Relationship

파트너 기업 간 문화적 거리가 국제합작투자기업의 성과에 미치는 영향: 건설적 갈등해결기법과 경쟁관계의 조절효과를 중심으로

  • Young-Soo Yang (Global Business Department, Hanshin University) ;
  • Jae-Eun Lee (Department of International Trade, Sunchon National University)
  • 양영수 (한신대학교 글로벌비즈니스학부) ;
  • 이재은 (순천대학교 무역학전공)
  • Received : 2021.03.30
  • Accepted : 2021.04.27
  • Published : 2021.04.30
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Abstract

The purpose of this study is to empirically analyze the effect of cultural distance between partner firms on international joint venture performance, focusing on the moderating effects of the conflict resolution techniques and the competitive relationship between partner firms. We tested hypotheses based on joint venture firms that were surveyed which formed by equity investment between Korean and foreign firms in the manufacturing industry. The empirical analysis results of this study are as follows. First, in international joint ventures, the cultural distance between partner firms was found to have a negative effect on the international joint venture performance, and the higher the cultural distance, the lower the joint venture performance. Second, it was found that constructive conflict resolution techniques weaken the negative impact of the cultural distance between partner firms in international joint ventures on the performance of international joint ventures. Third, competitive relationship between international joint venture partners showed no moderating effect on the relationship between cultural distance and international joint venture performance.

Keywords

Acknowledgement

This work was supported by Hanshin University Research Grant.

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