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Resources and performance of international joint ventures: the moderating role of absorptive capacity

Changsu Kim (Associate Professor of International Business, Sogang Business School, Sogang University, Korea)
Wu Zhan (Assistant Professor in International Business in the Faculty of Economics and Business at The University of Sydney, New South Wales, Australia, and an Associate Professor in International Business and Strategic Management at EMLYON Shanghai, China)
M. Krishna Erramilli (Professor of Marketing & Director of MBA Program at the Stuart School of Business, Illinois Institute of Technology, Chicago, Illinois, USA)

Journal of Asia Business Studies

ISSN: 1558-7894

Article publication date: 26 July 2011




Drawing on the resource‐based view and organizational learning theory, this study aims to examine the effect of resources and capabilities on international joint venture (IJV) performance.


Departing from the extant research which largely assumes a bipartite relationship, the present study views an IJV as representing a tripartite relationship involving the IJV, its foreign parent and its local parent. Accordingly, it examines the effect of resources contributed by both foreign and local parents on IJV performance. It also examines how the IJV's absorptive capacity moderates the relationship between resource acquisition and performance.


Results from a survey of 102 IJVs in China provide general support for the argument that performance of IJVs seems to be driven by the complementary resources of partner firms in combination with absorptive capacity of IJV.


The findings from this study are useful for researchers interested in performance of iIJVs.



Kim, C., Zhan, W. and Krishna Erramilli, M. (2011), "Resources and performance of international joint ventures: the moderating role of absorptive capacity", Journal of Asia Business Studies, Vol. 5 No. 2, pp. 145-160.



Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited

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