The Value of Migrants for International Joint Ventures

Julia Mittermayr (), Vera Kunczer () and Jonas Puck ()
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Julia Mittermayr: Vienna University of Economics and Business
Vera Kunczer: Vienna University of Economics and Business
Jonas Puck: Vienna University of Economics and Business

Chapter 12 in The Palgrave Handbook of Global Migration in International Business, 2023, pp 251-277 from Springer

Abstract: Abstract International joint ventures (IJVs) have become a key element in most companies’ growth strategies when expanding into foreign markets. Yet, IJVs can be difficult to manage and are often characterized by high dissolution rates. Cultural conflicts between partner firms are being cited as one of the main reasons for these difficulties. According to the social identity theory (SIT), cultural differences between IJV partners may lead to the formation of nationality-based social subgroups within the IJV, hindering collaboration and reducing performance outcomes. Our research suggests that international migrants, who have valuable knowledge of foreign cultures, may play a role in reducing the formation of subgroups and enhancing the partnership in IJVs, resulting in improved performance. We found that migration is positively correlated with IJV performance, and this relationship is stronger when there is a higher share of female migrants. The age of migrants does not appear to be a significant factor in this relationship. These findings shed light on previously unexplored areas in migration and IJV literature, and further our understanding of the SIT in the context of international business activities.

Keywords: Migrants; Knowledge spill-over; Social identity theory; International Joint Venture (IJV) (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-38886-6_12

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DOI: 10.1007/978-3-031-38886-6_12

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