Next Article in Journal
Optimization of Reactor Temperature for Continuous Anaerobic Digestion of Cow Manure: Bangladesh Perspective
Next Article in Special Issue
Prediction of Plant Phenological Shift under Climate Change in South Korea
Previous Article in Journal
Environmental Flows Assessment in Nepal: The Case of Kaligandaki River
Previous Article in Special Issue
Literature Trend Identification of Sustainable Technology Innovation: A Bibliometric Study Based on Co-Citation and Main Path Analysis
Open AccessArticle

What Determines Innovative Performance of International Joint Ventures? Assessing the Effects of Foreign Managerial Control

1
Division of Liberal Arts and Sciences, Gwangju Institute of Science and Technology (GIST College), Gwangju 61005, Korea
2
Department of Business, Chungnam National University, Daejeon 34134, Korea
3
Department of International Business and Trade, College of Business Administration, Myongji University, 34 Geobukgolro, Seodaemun-gu, Seoul 07364, Korea
*
Author to whom correspondence should be addressed.
Sustainability 2020, 12(21), 8770; https://doi.org/10.3390/su12218770
Received: 20 September 2020 / Revised: 15 October 2020 / Accepted: 16 October 2020 / Published: 22 October 2020
(This article belongs to the Special Issue Ambidextrous Open Innovation for Sustainability)
International joint ventures (IJVs) have long been considered a vibrant venue for innovation, one source of sustainable competitive advantage. Nonetheless, there is a paucity of research that seeks to understand what determines their innovative performance. We draw attention to and examine the control structure of IJVs as a determinant of innovation. Using the complementary lenses of local embeddedness, the liability of outsidership, and open innovation, we argue that foreign managerial control reduces IJV innovation and that equity ownership balance between foreign and local parent firms and affiliation of IJVs with local market business groups weaken this negative relationship. Using panel data of 48 IJVs in Korea during the periods between 2000 and 2016, we find empirical support for these arguments. This study contributes to the literature by extending our understanding of how to design IJVs for enhancing innovative output and consequently improving their sustainability. View Full-Text
Keywords: international joint ventures; foreign managerial control; local embeddedness; liability of outsidership; innovation international joint ventures; foreign managerial control; local embeddedness; liability of outsidership; innovation
Show Figures

Figure 1

MDPI and ACS Style

Jin, K.; Park, C.; Lee, J. What Determines Innovative Performance of International Joint Ventures? Assessing the Effects of Foreign Managerial Control. Sustainability 2020, 12, 8770. https://doi.org/10.3390/su12218770

AMA Style

Jin K, Park C, Lee J. What Determines Innovative Performance of International Joint Ventures? Assessing the Effects of Foreign Managerial Control. Sustainability. 2020; 12(21):8770. https://doi.org/10.3390/su12218770

Chicago/Turabian Style

Jin, Kyuho; Park, Chulhyung; Lee, Jeonghwan. 2020. "What Determines Innovative Performance of International Joint Ventures? Assessing the Effects of Foreign Managerial Control" Sustainability 12, no. 21: 8770. https://doi.org/10.3390/su12218770

Find Other Styles
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Search more from Scilit
 
Search
Back to TopTop