MGT604: Annotated Bibliography on Cultural Differences in IJV

This annotated bibliography examines the critical role of cultural differences in international joint ventures (IJVs). The assignment includes summaries of five research-based academic journal articles, analyzing the impact of cultural dissimilarities on IJV performance, organizational behavior, and management decision-making in a global context. The articles explore various aspects, including national and organizational culture differences, their influence on IJV success, and strategies for managing cultural challenges. Key findings highlight the negative impact of cultural differences on IJV performance, the importance of corporate culture, and the need for effective cultural management policies. The research also discusses the influence of time and cultural integration on IJV longevity. The annotated bibliography provides valuable insights into the complexities of managing IJVs across diverse cultural settings, offering implications for managers navigating the global business landscape.

Running Head: Cultural differences and IJV 0
Annotated Bibliography
cultural differences between the partners or companies prove to be detrimental for international joint
ventures
System
4/11/2019

Cultural differences and IJV 1
Journals Annotated Bibliography
David, A., Irem, D., & Talat, B.(2008) Implications of Culture in the Performance of
International Construction Joint Ventures.Journal of Construction Engineering and
Management, 134(5)
https://ascelibrary.org/doi/10.1061/%28ASCE%29CO.1943-7862.0001371
According to the authors of the journal, the following study was done:
Joint ventures have become increasingly popular over time as they have become an
important part or a strategic option for the global competition. One of the main reason behind the
international joint ventures the difficulty to manage them is due to the cultural differences
between the International Joint Venture partners, which also have a major impact on the
organization performance as well as the performance of the employees. There are many
structure projects, which are very sensitive to the outside risks; the culture also affects the
location in which the International Joint Venture works. In the given article, the study analyses
the effect of cultural similarity and the differences between the nation and the characteristics of
the organizational of partner companies on the presentation of International Joint Venture by a
survey of questionnaire. The cause of the cultural comparison/dissimilarity among an IJV partner
and the host country is also assessed in this study. The study also shows and depicts that the
difference of the organizational culture have a really large and great impact on the performance
of International Joint Venture performance than the differences in national culture and the host
country. The study and the findings also show the similarities between the national cultures of
International Joint Ventures partners have a negative outcome on International Joint Ventures
performance. Although in the study, there was no proof that the presentation of international
Joint Ventures performance has been affected by the differences host country and the culture of
an International Joint Venture partner.
Junaid, J. (2013) Cultural Distance and the Performance of International Joint Venture
Germany: GRIN Verlag (ISBN: 3656498822, 9783656498827)
The author has the following believes:
In the global market, the international joint ventures are slowly becoming very prevalent.
Many of the multinational companies have managed to experience growth by alliances like the
joint ventures. This book says that there are several factors that needs control otherwise it can
lead to week performance of international joint ventures. There are around 30 to 40 percent of
international joint ventures have problems due to cultural differences. Pothukuchi et al said that
the problem arises in international joint ventures when the national culture affects the behavior of
management system, which also leads to conflicts in organization. One was in the case study of
Sony Ericson as it followed the same thing of joint ventures; it collaborated with two of the

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multinational companies who come together in order to become a single corporate, It was seen
that organizational cultural difference has a negative impact on the organization as well as the
performance of the employees, while the national cultural differences can have both positive and
negative impact on the organization.
Bener, M., & Glaister, W. (2009)Title: ventures. International Journal of Strategic Business
Alliances, 1(2) DOI: 10.1504/IJSBA.2009.025352
In The article says the following things:
This paper shows and studies the importance of corporate culture and national culture
differences in the international joint ventures with their parent firms, which were from the North
America, Australia and Europe. The research findings shows that the corporate culture
differences are the main reason behind the different visions about the management of the
partners of Joint Ventures and then it is compared to the national culture differences as well. In
the study, it is also shown that the firms adopt the policies of culture management in order to
decrease the culture difference. Third, it was also seen that in the study that the greater amount of
the culture differences was also seen by the parent firms then by the Joint Ventures. The Fourth
thing is that there were a lot of cultural differences due to different point of views on Joint
Venture management.
Ferenc. F, (2002) Cross-Cultural Issues of International Joint Ventures: A Viewpoint from
Israel , Vol.35(2)
https://www.researchgate.net/publication/237532722_Cross-
Cultural_Issues_of_International_Joint_Ventures_A_Viewpoint_from_Israel
This article states that
This study focus on the study of joint ventures, this has just come into play in the recent
years due to globalization and the national performance and culture of the international joint
ventures. Organizational culture is a very important part of the organization, which also helps in
setting, believes of the organization. This journal has confusing findings about the scenery of the
connection among the cultural differences of partners and their JV performances, the aim and
aim of the research was to test the if the cultural differences effected the organization. Three of
the major hypotheses were tested in the study, which were (1) the difference in the culture of the
organization is the reason of bad performance instead of the cultural difference. (2) Does the
manipulation of differences of culture affect the presentation of the international joint ventures
in an indirect manner and doe sit effects the trust between the partners as well (3) does thee trust
between the partners impact the organization. Data was collected from the sixty six managers
and sixty three of them were joint ventures that also had Israeli partners and twenty three
countries in sixteen industries. In the learning, it was seen that the joint venture performance that
were being operated in Israel were influenced and impacted by the culture differences of the

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organization, which also affected the trust between the partners. However, the study found out
that natation culture differences do not affect or influence the performance of joint ventures.
Meschi, PX.(2000) Longevity and Cultural Differences of International Joint Ventures: Toward
Time-Based Cultural Management. Human relations, 211(50).
https://doi.org/10.1023/A:1016978005480
The author of the journal said the following things:
This article shows the relationship the time, organization and the national distance of culture,
which is in a setting of a IJV. Mostly it sees to which extent does the endurance of an
international joint venture, which also influences differences through culture. In the article, fifty-
one in IJV which are in a place Hungary. It shows definite ways in which the managers of
certain joint ventures can covenant with the cross culture issues. The results of the study show
and recommend so as to the chronological measurement is a cultural representative of
significance, however in order to be very successful, it should combine with the strategy of
cultural integration. The study also shows that each organization has its own culture, which has a
good or a bad impact on its success or failure. There are different organizations that try to work
together towards a single and a common goal and objective. Every organization can find
difficulties because each company has different culture. The study also shows different
advantages and disadvantage of international joint ventures the advantages are new insight and
knowledge. In order to start a joint venture provides the organization or the company gets an
opportunity to gain new knowledge and expertise. Another advantage is better resources forming
a joint venture helps in getting better resources for example staff an d technology. Next
advantage is that the joint ventures are only temporary. The joint venture agreements is a
temporary agreement between the company and the and another after this advantage is that both
the parties share the risk and cost. After this, the disadvantages are that the objectives are vague;
a joint venture does not have a clear objective and is not clearly communicated among all. The
flexibility is restricted there are a lot of times when the flexibility gets restricted and the
participant is forced to focus on the joint venture more and thus the individual business suffers
Another disadvantage is that there is nothing which is same as or even known as equal
involvement. There must be an equal pay, however, the companies do not share the
responsibilities equally. Like For example if in a joint venture company A is working on the
production process then the Company B is will be seeing production, and therefore Company C
would be the in charge planning. Next disadvantage is that it is hard to exist as a partner if
contract is involved even If a joint venture is temporary, it is very important for the person to
know that they are being locked in a contract. Apart from this, the next disadvantage is the
individual might be asked to leave the joint venture. There is also lack of communication in the
joint venture as the joint venture includes various different kind of organizations from various
dissimilar distances that have dissimilar goals and hence there is frequently an unembellished
communication gap between the partners of the venture. In addition, the last disadvantage is
unreliable partners and unrealistic objectives due to different nature of the joint venture, it is

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likely that the associates do not give hundred percent attentions to the project and become
untrustworthy. The objectives of the organization are very unreal and due to less communication
the goal are not discussed properly with the whole organization and thus the organization has to
suffer and no goals are achieved.

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References
Bener, M., & Glaister, W. (2009)Title: Perceptions of cultural differences and the management
of culture in international joint ventures. International Journal of Strategic Business Alliances,
1(2) DOI: 10.1504/IJSBA.2009.025352
David, A., Irem, D., & Talat, B.(2008) Implications of Culture in the Performance of
International Construction Joint Ventures.Journal of Construction Engineering and
Management, 134(5)
https://ascelibrary.org/doi/10.1061/%28ASCE%29CO.1943-7862.0001371
Ferenc. F, (2002) Cross-Cultural Issues of International Joint Ventures: A Viewpoint from
Israel , Vol.35(2)
Junaid, J. (2013) Cultural Distance and the Performance of International Joint Venture
Germany: GRIN Verlag (ISBN: 3656498822, 9783656498827)
Meschi, PX.(2000) Longevity and Cultural Differences of International Joint Ventures: Toward
Time-Based Cultural Management. Human relations, 211(50).
https://doi.org/10.1023/A:1016978005480

Cultural differences and IJV 6