Achieving value co-creation through cooperation in international joint ventures: A two-level perspective

Qingtao Wang, Xuan Bai and Julie Juan Li

International Business Review, 2023, vol. 32, issue 1

Abstract: How can international joint ventures (IJVs) enhance value co-creation? Using a resource-based view (RBV), this study examines whether partners’ cultural compatibility and parent companies’ asset complementarity foster top-level cooperation and/or operating-level cooperation in IJVs and investigates the underlying mechanisms (i.e., top-level goal alignment and operating-level goal alignment) in IJV relationships. This study also scrutinizes the differing impacts of top-level and operating-level cooperation on value co-creation in IJVs. The findings from a survey of 200 IJVs in China show that partners’ cultural compatibility positively affects top-level cooperation primarily through top-level goal alignment, while asset complementarity positively affects operating-level cooperation through operating-level goal alignment. Furthermore, operating-level cooperation has a stronger effect on value co-creation than top-level cooperation. This study offers fresh insights into IJV cooperation and value co-creation by introducing a two-level perspective and provides important managerial implications for the development of sustainable IJVs.

Keywords: Partners’ cultural compatibility; Asset complementarity; Goal alignment; Cooperation; Value co-creation; Resource-based view (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (3)

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DOI: 10.1016/j.ibusrev.2022.102028

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