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Monica Yang Adelphi University

Agenda. Research Motivation and ContributionsResearch QuestionsTheory and HypothesesMethodResultsFuture Research Direction. Motivation and Contributions. The international joint venture (IJV) literature identifies economic and organizational factors that determine strategic choices of IJVs. However, no discussion on the conformity/differentiation level of the content of strategic choices. Values of conformity and differentiation are both supported in theoriesIJV managers need to know whe9445

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Monica Yang Adelphi University

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    1. Monica Yang Adelphi University

    2. Agenda Research Motivation and Contributions Research Questions Theory and Hypotheses Method Results Future Research Direction

    3. Motivation and Contributions The international joint venture (IJV) literature identifies economic and organizational factors that determine strategic choices of IJVs. However, no discussion on the conformity/differentiation level of the content of strategic choices. Values of conformity and differentiation are both supported in theories IJV managers need to know when and what to conform or generate their own competitive advantages.

    4. Research Questions Does the content of IJVs strategic formation choices become increasingly similar or different over time? What factors influence the degree of conformity in the strategic formation choices of IJVs?

    5. IJVs Strategic Formation Choices Two categories- Partner Selection the number of partners the status of the local partner the product relatedness between JV and its partners the product relatedness among partners Ownership Structure the ownership ratio between foreign and local (China) partners

    6. Theory and Hypotheses Institutional theory: the degree of variation in organizational choices gradually decreases over time. Hypothesis 1a: The later the date of IJV entry, the greater the level of conformity in strategic formation choices.

    7. Theory and Hypotheses Strategic literature: the degree of variation in organizational choices gradually increases over time. Hypothesis 1b: The later the date of IJV entry, the lower the level of conformity in strategic formation choices.

    8. Theory and Hypotheses IJVs past experience in China (Beamish,1988; Harrigan,1985 ) -slack resources that allow a firm to explore new strategies -or routines that lock a firm into its existing strategies -or both? Hypothesis 2: The level of conformity in strategic formation choices decreases first and then increases when an IJVs past experience in China increases.

    9. Sample and Methodology A sample of 4,787 IJVs established in China from 1985 to 2001 Generalized multivariate regression model The dependent variable- the degree of conformity at the firm (joint venture) level Control variables-industry, FDI, GDP, origin of foreign countries, political instability, economic shocks

    10. Results

    11. Research Implications This paper offers a different approach to apply institutional theory to the IJV context. The result of an increasing pattern of conformity shows that Time brings significant influence on the debate of conformity and differentiation.

    12. Managerial Implications Although factors like macro economic performance encourage variation and innovation, the conformity force embedded within time factor dominates. The curvilinear influence of experience determines the degree of conformity in strategic formation choices

    13. Future Research Directions Link the degree of conformity in strategic formation choices to IJV performance Compare the results to IJVs in other countries such as the former Soviet republics and East European countries. Explore the pattern of strategic choices of Chinese MNEs

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