What Differences in the Cultural Backgrounds of Partners Are Detrimental for International Joint Ventures?

An international joint venture implies that a firm has to cooperate with a partner with a different cultural background. In this study, hypotheses about which differences in national culture are most disruptive for international joint ventures were developed and tested using Hofstede's five dim...

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Bibliographic Details
Published in:Journal of international business studies 1997-12, Vol.28 (4), p.845-864
Main Authors: Barkema, Harry G., Vermeulen, Freek
Format: Article
Language:English
Subjects:
Business and Management
Business Strategy/Leadership
Business structures
Business studies
Chinese culture
Cooperation
Cultural differences
Cultural differentiation
Cultural diversity
Cultural values
Culture
Economic cooperation
Foreign investment
Foreign subsidiaries
Host country
Hypotheses
Individualism
International Business
International economics
Japanese culture
Joint ventures
Longevity
Management
Masculinity
Modeling
Multiculturalism & pluralism
Multinational corporations
Organization
Partners
Questionnaires
Statistical analysis
Studies
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Summary:An international joint venture implies that a firm has to cooperate with a partner with a different cultural background. In this study, hypotheses about which differences in national culture are most disruptive for international joint ventures were developed and tested using Hofstede's five dimensions. The study focused on how these dimensions affect the survival of international joint ventures, as well as their incidence relative to wholly owned subsidiaries. The hypotheses were tested on longitudinal data about 828 foreign entries of twenty-five Dutch multinationals in seventy-two countries between 1966 and 1994. The database, which spans almost three decades, was also used to provide new evidence on a key assumption of Hofstede's work: that cultural values are stable over time.
ISSN:0047-2506
1478-6990
DOI:10.1057/palgrave.jibs.8490122