Performance drivers of International Joint Venture (IJVs) in China : integrating the resource-based view (RBV) with the Dynamic Capability (DC) perspective

• Main Author: Wu, Zhan
• Other Authors: M. Krishna Erramilli
• Format: Theses and Dissertations
• Published: 2008
• Subjects: DRNTU::Business::Industries and labor
• Online Access: https://hdl.handle.net/10356/7806
• Institution: Nanyang Technological University

The topic which this dissertation explores is the performance drivers of the International Joint Ventures (IJVs) in transition economies, from the perspectives of the traditional Resource-based View (RBV) and the emerging Dynamic Capability (DC) theory. Based on an exhaustive literature review, this dissertation identifies five major gaps in the current literature on the IJV performance from the traditional RBV perspective. Drawing on the traditional RBV perspective, we argue that both the quality dimension and the quantity dimension of IJV resources are crucial in influencing the performance. Furthermore, not only should the resources from foreign partners be explored, but the resources from local partners should be investigated. Aiming to extend the traditional RBV perspective, this dissertation applies the DC perspective, an emerging theoretical perspective in Strategic Management literature. This study conceptualizes the DC as having two dimensions, namely, Capability Exploitation, which concerns the extent to which a firm exploits rent-generating resources that are firm-specific, difficult to imitate, and able to generate abnormal returns, and Capability Exploration, which involves the extent to which a firm commits to building new capabilities through learning from organizations, creating new skills, or revitalizing existing skills in new situations.