International joint ventures and performance: an interorganizational perspective

Using data collected from a sample of North American-Japanese joint ventures (JVs), this paper reports an investigation of JV performance within an interorganizational framework. A structural equation modeling approach was used in conjunction with multiple methods of construct measurement. The findings support the view that the type and nature of interfirm interactions influence the parents' assessment of JV performance. The study found that the quality of the exchange relationship was an important factor, supporting the argument that compatibility between the partners is a crucial factor in determining the partners' relative bargaining power and operating relationship norms.