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Control Position Strategy, Cultural Distance, Conflict Resolution Strategies and Performance of International Joint Ventures

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The Rise of Multinationals from Emerging Economies

Part of the book series: The Academy of International Business ((AIB))

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Abstract

Facing fierce global competition, firms often establish international joint ventures (IJVs) with foreign firms (Kwon, 2013). However, researchers notice a high rate of IJV failure (e.g. Hennart, Kim and Zeng, 1998). One of the key reasons is that firms often have different goals and ways of communications. Another reason is that inter-partner conflicts often lead to dissolution of partnership (Fey and Beamish, 1999; Pajunen and Fang, 2013). Thus, understanding conflict is crucial to organisations (Boonsathorn, 2007, Das and Kumar, 2010; Krone and Steimel, 2013) since conflict resolution strategies of parent firms affect IJV performance (Fey and Bearmish, 1999; Lu, 2006; Yavas, et al., 1994). Lin and Germain, 1998) suggest that foreign parent firms differ in their choice of conflict resolution strategies (CRS). Wang, Lin, Chang and Shi (2005) notice that conflict handling styles of partner firms becomes an important topic in IJV research, and White III, Joplin and Salama (2007) maintain that conflict resolution strategy is an underexplored area in the international business and management literature.

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Authors
  1. Huu Le Nguyen
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  2. Jorma Larimo
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  3. Tahir Ali
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Editor information

Editors and Affiliations

  1. University of Huddersfield, UK

    Palitha Konara

  2. University of York, UK

    Yoo Jung Ha

  3. University of Liverpool, UK

    Frank McDonald

  4. University of Leeds, UK

    Yingqi Wei

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© 2015 Huu Le Nguyen, Jorma Larimo and Tahir Ali

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Cite this chapter

Nguyen, H.L., Larimo, J., Ali, T. (2015). Control Position Strategy, Cultural Distance, Conflict Resolution Strategies and Performance of International Joint Ventures. In: Konara, P., Ha, Y.J., McDonald, F., Wei, Y. (eds) The Rise of Multinationals from Emerging Economies. The Academy of International Business. Palgrave Macmillan, London. https://doi.org/10.1057/9781137473110_9

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