Title: An evolutionary approach to study joint venture business performance: an empirical study of international joint ventures in Taiwan

Authors: Cher-Min Fong, Cher-Hung Tseng, Chung-Shing Lee, Hsien-Jui Chung

Addresses: Department of Business Administration, National Sun Yat-Sen University, Kaoshiung, Taiwan. ' Department of Business Administration, National Pingtung Institute of Commerce, Pingtung, Taiwan. ' School of Business, Pacific Lutheran University, Tacoma, WA 98447, USA. ' Department of Business Administration, National Chung Cheng niversity, Min-Hsiung, Chia-Yi, Taiwan

Abstract: This research investigates a series of major events and factors during the life-cycle stages of an international joint-venture (IJV) that may affect the business performance of the venture. The theoretical foundations of this research are joint-venture partner selection, strategic planning, and the theory of social exchange. A sample of 51 US–Taiwanese and Japanese–Taiwanese IJVs operating in Taiwan were collected and analysed. The research results show that factors associated with each major life-cycle stage of the venture exhibit a strong influence on the overall performance of IJVs. Choosing the right partner, comprehensiveness in planning, and post-established interactions between partners, all demonstrate significant impacts on IJV performance. The study reveals that, when managing a cooperative venture, managers should not ignore factors in subsequent evolutionary stages that may influence the IJV performance even though the pre-established conditions are favourable.

Keywords: business performance; international joint venture; strategic alliances; Taiwan.

DOI: 10.1504/IJBPM.2004.004115

International Journal of Business Performance Management, 2004 Vol.6 No.1, pp.22 - 42

Published online: 10 May 2004 *

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