Executives' Assessments of International Joint Ventures in China: A Multi‐Theoretical Investigation

30 Pages Posted: 4 Jul 2012

See all articles by Jeffrey J. Reuer

Jeffrey J. Reuer

Purdue University - Krannert School of Management

Beverly B. Tyler

North Carolina State University - Department of Business Management

Cheng‐Wei Wu

Independent

Tony Tong

University of Colorado at Boulder

Date Written: July 2012

Abstract

Despite the rich set of theories that have developed on international joint ventures (IJVs), little is known about what theoretical criteria senior executives actually incorporate in their judgments of IJV opportunities and partners. Empirical studies have often applied individual theories in a particularistic fashion, rather than recognizing the different theoretical perspectives that boundedly‐rational executives may incorporate into their decision models. In this article, we combine decision criteria associated with multiple theories rooted in organizational economics to investigate how top executives process information on IJV opportunities in China. Using an established experimental technique known as policy capturing, we examine how executives cognitively weigh criteria from four prominent theories when making initial assessments of IJVs (i.e., the resource‐based view, transaction cost economics, information economics, and real options theory). Our arguments and findings on executives' IJV decision models contribute to decision‐making research on alliances and IJVs in China.

Keywords: executive decision making, international joint ventures, policy capturing

Suggested Citation

Reuer, Jeffrey J. and Tyler, Beverly B. and Wu, Cheng‐Wei and Tong, Tony, Executives' Assessments of International Joint Ventures in China: A Multi‐Theoretical Investigation (July 2012). Management and Organization Review, Vol. 8, Issue 2, pp. 311-340, 2012. Available at SSRN: https://ssrn.com/abstract=2100276 or http://dx.doi.org/10.1111/j.1740-8784.2011.00254.x

Jeffrey J. Reuer (Contact Author)

Purdue University - Krannert School of Management ( email )

1310 Krannert Building
West Lafayette, IN 47907-1310
United States

Beverly B. Tyler

North Carolina State University - Department of Business Management ( email )

Raleigh, NC 27695
United States

Cheng‐Wei Wu

Independent

No Address Available

Tony Tong

University of Colorado at Boulder ( email )

1070 Edinboro Drive
Boulder, CO 80309
United States

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