Resource attributes and firm performance in international joint ventures

Using the resource-based view of the firm, we examine how four key resource attributes affect performance. The relationship between resource attributes and performance is studied in the context of international joint ventures (IJVs), using data from 96 IJVs in Malaysia. Executives were asked to asse...

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Bibliographic Details
Published in:Journal of world business : JWB 2007-03, Vol.42 (1), p.47-60
Main Authors: Ainuddin, R. Azimah, Beamish, Paul W., Hulland, John S., Rouse, Michael J.
Format: Article
Language:English
Subjects:
Business strategies
Business studies
Economic performance
Economic resources
Enterprises
Executives
Joint venture
Joint venture Resource attributes Resource-based view of the firm Performance
Joint ventures
Malaysia
Resource attributes
Resource-based view of the firm
Senior management
Studies
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Summary:Using the resource-based view of the firm, we examine how four key resource attributes affect performance. The relationship between resource attributes and performance is studied in the context of international joint ventures (IJVs), using data from 96 IJVs in Malaysia. Executives were asked to assess the extent to which four resources (product reputation, technical expertise, local business network and marketing skills) exhibited the following attributes: (1) value; (2) rarity; (3) imperfect imitability; (4) non-substitutability. For each resource, the relationships between these attribute ratings and performance were analyzed. We found that each of the four attributes had an influence on performance. Value, rarity, and non-substitutability were found to be significant drivers of performance for IJV assets. In contrast, value, rarity, and non-imitability were critical attributes for organizational capabilities.
ISSN:1090-9516
1878-5573
DOI:10.1016/j.jwb.2006.11.001