Strategic Response to a Volatile Environment: The Case of Cross-Cultural Cooperative Ventures

Asian Pacific Journal of Management, Vol. 18, pp. 7-25

19 Pages Posted: 18 Feb 2010 Last revised: 28 Apr 2010

See all articles by Yadong Luo

Yadong Luo

University of Miami - Department of Management

Justin Tan

York University - Schulich School of Business

Neale Gilbert O'Connor

Monash University Malaysia

Date Written: 2001

Abstract

Unlike free-standing companies, joint ventures involve more complex governance structures and organizational systems. Because of interpartner dependence in the managerial process, it is more difficult for joint ventures to configure their strategies with environmental dynamics. Without such configuration, however, joint ventures will suffer from operational instability and resource misallocation. This study assesses the strategic response of joint ventures to a dynamic environment. Based on a survey of top managers in international joint ventures (IJVs) in China, it is found that managerial perceptions of increased environmental complexity and hostility are positively related to an Analyzer strategy. Proactive and Defensive strategies are either negatively or non-significantly linked with perceived environmental dynamics. Further, the Analyzer strategy is associated with superior performance for IJVs in the context of an emerging economy.

Keywords: strategic response, joint ventures, environment volatility

Suggested Citation

Luo, Yadong and Tan, Justin and O'Connor, Neale Gilbert, Strategic Response to a Volatile Environment: The Case of Cross-Cultural Cooperative Ventures (2001). Asian Pacific Journal of Management, Vol. 18, pp. 7-25, Available at SSRN: https://ssrn.com/abstract=1554675

Yadong Luo (Contact Author)

University of Miami - Department of Management ( email )

United States

Justin Tan

York University - Schulich School of Business ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

HOME PAGE: http://www.schulich.yorku.ca/SSB-Extra/Faculty.nsf/faculty/Tan%20Justin

Neale Gilbert O'Connor

Monash University Malaysia ( email )

Malaysia
0122005964 (Phone)
47500 (Fax)

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