Technological knowledge, product relatedness, and parent control: The effect on IJV survival

• Main Authors: XU, Dean, LU, Jane W.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2007
• Subjects: IJV survival; technological knowledge; product relatedness; equity control; managerial control; China; Japan; Cox regression; Asian Studies; International Business; Technology and Innovation
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/6537; https://ink.library.smu.edu.sg/context/lkcsb_research/article/7536/viewcontent/xu_lu_jbr_2007_pv.pdf
• Institution: Singapore Management University

This article examines the relationships among parent firm technological knowledge, parent-IJV product relatedness, parent control over the IJV, and IJV survival. Combining the knowledge-based perspective and institutional theory, we argue that parent control itself does not necessarily lead to higher IN survival; it contributes to IN survival when the parent firm has a high level of technological knowledge, and when the IJV is product-related to this parent. Results obtained from 1038 Japanese IJVs based in China indicate that both equity control and managerial control of a Japanese parent had a positive interaction effect, with the parent's technological knowledge, on IN survival. Equity control also exhibited a positive interaction effect with product relatedness. In a sub-sample of 354 Sino-Japanese IJVs containing local parent information, managerial control by the Chinese parent was found to have a positive interaction effect, with Chinese parent-IN product relatedness, on IN survival.