A Configurational Analysis of International Joint Ventures

Abstract

A stream of research has focused on the ownership shares that partner companies take in international joint ventures [IJVs] and the leverage this may provide for control and performance. This research has normally adopted a `variance' approach, which examines `independent' variables as potential predictors of the focal phenomenon. The variance approach has yielded reasonably consistent results for the relationship between IJV ownership and control, but not in respect of performance. In searching for the optimum predictive model for whole samples, the variance approach risks overlooking inter-case nuances that may result from somewhat different configurations of variables. An alternative approach seeks to explore how and why variables configure together in different combinations.This paper draws on a study of 20 Sino-UK IJVs and their parent companies. It proceeds from a conventional variance analysis to identify different IV configurations. These configurations can be understood in the light of each IV's formative context, and they relate to performance in different ways. Propositions deriving from the study are offered as guidelines for further research.