• International Commerce and Information Review
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• v.19 no.1
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• pp.235-256
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• 2017

This study is to analyse how trust and asset specificity among partner firms affect on performance of international joint venture(IJV). Especially, the analysis was mainly based on a quadratic model. While it assumes that the previous studies was based on linear model in the relationship between trust, asset specificity and the performance, this study proceeds a empirical analysis by setting up a hypothesis; it would be quadratic relationship between trust, asset specificity and performance which are based on social capital theory and transaction cost theory. The survey was held with 74 manufactures who were established as an IJV by Korean and foreign firms together. In the result of the empirical analysis, trust shows an inverted U-shaped relationship with IJV performance. Also, asset specificity shows the U-shaped relationship with IJV performance. The results suggest that it needs to control and maintain the trust level among the partners in order not to lose an appropriate control caused by too much trust. In order to minimize the cost generated by asset specificity and to transform it into positive impact, it needs a control and the operation of monitoring system on the opportunistic action of the partners. Furthermore, it needs to keep organizational flexibility and innovativeness to continuously develop new capabilities.

• Asian Journal of Innovation and Policy
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• v.4 no.2
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• pp.178-199
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• 2015

This study provides a background on the growth of Indian automobile industry under different regulatory regimes. It is observed that the international joint ventures have played a key role in the growth of the sector. The study further examines the motives for forming IJVs in the auto component sector and also identifies the criteria for choosing the joint venture partner to mitigate conflicts. These two specific attributes form the core towards transfer of technology, promoting innovation and also act as a catalyst for adopting and choosing appropriate technology. The study brings out the relationship between motives, partner selection criteria and performance of the IJVs. Results indicate that firms gave maximum importance to technological skills, quality control measures and proprietary knowledge in selecting IJV partners. It is also observed that the motives affect the partner selection criteria in terms of skill and resources needed from the partner.

• Korea Trade Review
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• v.46 no.2
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• pp.161-175
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• 2021

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.

• International Area Studies Review
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• v.13 no.2
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• pp.3-39
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• 2009

The purposes of this study are to identify important variables such as strategic motivation, performance objectives and satisfaction, managerial and functional area control, functional area conflict, resource contribution, investment environment and competition of international joint ventures (IJV) and to compare the management practices of Korean and Japanese IJVs in Vietnam. Data set consists of those Korean and Japanese IJVs with local partners in Vietnam. The results suggest that Korean and Japanese IJVs in Vietnam reveals significant differences in their international management practices at IJVs in most areas. We also found differences in satisfaction of the parent companies with the performance of these IJVs in Vietnam.