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THE ROAD TO SUCCESS: A RESOURCE-BASED VIEW OF JOINT VENTURE EVOLUTION IN CHINAS AUTO INDUSTRY

In emerging markets, joint venture is a dominant form of competition for multinational corporations. Drawing from the resource-based view of the firm and evolutionary perspective, I developed a theoretical framework that synthesizes our knowledge regarding timing of joint venture formation, initial resource commitment and resource development beyond formation to fully understand the path of joint venture implementation and its economic impact on sustainable competitive advantage.
Life course data for 439 joint ventures in the Chinese auto industry (1983-2002) form a cohort-sequential longitudinal dataset. Employing Hierarchical Linear Modeling (HLM) allows me to isolate the economic consequences and developmental trend of the main and interaction effects of entry timing, initial resource commitment and resource development on joint venture performance over time.
The results of the study indicate that: 1). The sustainability of early mover advantage depends not only on the initial resource commitment, but also the effort in resource development over time. 2). Timing alone is significant in determining initial performance, but is not significant for the long-term success. 3). Early movers with high initial resource commitment are more likely to succeed in the long run but may take some time to achieve profitability.
This study empirically explored the dynamics of resource accumulation and its impact on intra-firm performance variation through its life course and inter-firm performance variation overtime by integrating the resource-based view and entry order effect research. The results can help to reconcile the long time equivocal findings in entry order effect research. It can also provide a valuable contribution to the development of a dynamic resource base theory of the firm through the longitudinal analysis of IJVs life course development paths.
Methodologically, it is one of the first attempts to introduce HLM to international joint venture research where the important issue of parameter variation across firm or over time has not been effectively addressed. Furthermore, the results identified different pathways to success through the use of different entry strategies and advanced our knowledge of international joint venture operations at and beyond the formation stage.

Identiferoai:union.ndltd.org:PITT/oai:PITTETD:etd-12222004-150908
Date23 December 2004
CreatorsTao, Qingjiu Tom
ContributorsChristopher L. Carr, Susan McEvily, Ravi Madhavan, Mike W. Peng, John C. Camillus, John E. Prescott
PublisherUniversity of Pittsburgh
Source SetsUniversity of Pittsburgh
LanguageEnglish
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.library.pitt.edu/ETD/available/etd-12222004-150908/
Rightsunrestricted, I hereby certify that, if appropriate, I have obtained and attached hereto a written permission statement from the owner(s) of each third party copyrighted matter to be included in my thesis, dissertation, or project report, allowing distribution as specified below. I certify that the version I submitted is the same as that approved by my advisory committee. I hereby grant to University of Pittsburgh or its agents the non-exclusive license to archive and make accessible, under the conditions specified below, my thesis, dissertation, or project report in whole or in part in all forms of media, now or hereafter known. I retain all other ownership rights to the copyright of the thesis, dissertation or project report. I also retain the right to use in future works (such as articles or books) all or part of this thesis, dissertation, or project report.

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