Implications of Culture in the Performance of International Construction Joint Ventures
Publication: Journal of Construction Engineering and Management
Volume 134, Issue 5
Abstract
Joint ventures have become popular because of their importance as a strategic alternative in global competition. One of the reasons why international joint ventures (IJVs) are difficult to manage is because the cultural distance between IJV partners has significant impact on alliance performance. Since construction projects are highly sensitive to external risks, the effect of the culture in the location in which the IJV operates is also significant. In this study, the effect of cultural similarity/difference relative to the national and organizational characteristics of partner companies on IJV performance is examined through a questionnaire survey. The impact of the cultural similarity/difference between an IJV partner and the host country is also assessed. The results of the study suggest that differences in organizational culture have a greater impact on IJV performance than differences in national and host country culture. The findings also reveal that similarity between the national cultures of IJV partners has a negative effect on IJV performance. The analysis of the data failed to provide evidence that IJV performance is affected by differences between the culture of the host country and the culture of an IJV partner.
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Published In
Journal of Construction Engineering and Management
Volume 134 • Issue 5 • May 2008
Pages: 361 - 370
Copyright
© 2008 ASCE.
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Received: Nov 16, 2006
Accepted: Nov 1, 2007
Published online: May 1, 2008
Published in print: May 2008
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