Performance Characteristics of International Joint Ventures in Construction

Abstract

Joint ventures have become a very popular strategy among international contractors over the past three decades, since it allows achieving a temporary partnership between the participating firms in a project environment. Partners can combine their distinctive competencies and complementary resources for the period of a project as well as they can share project related and host country related risks. This situation also allows international contractors to conform to the host government policies. Besides these advantages, IJVs are difficult to manage due to diversification in the goals of partners and the host country related risk factors. Thus, managing international joint ventures (IJVs) and measuring the performance of IJVs in construction have become one of the most popular subjects of the literature after 2000. However, there isn’t any study concerning the key performance characteristics of IJVs in construction depending on empirical analysis and meta-analysis. That’s why; the main aim of this study is to determine the key performance characteristics of international construction joint-ventures through a literature review both in management science literature and construction management literature by using meta-analysis technique. The findings of this study can be used in further studies concerning about performance models of IJVs in construction as well as can be used by international contractors.

Keywords

• construction management; international construction; joint-ventures; meta-analysis; performance characteristics.

Kaynakça

1. Beamish P.W. & Lupton, N.C. 2009. Managing Joint Ventures. Academy of Management Perspectives, May, 75-94.
2. Bing, B.L. & Tiong, R.L.K. 1999. Risk management model for international construction joint ventures. Journal of Construction Engineering and Management, 125(5), 377-384.
3. Boateng, A. & Glaister, K.W. 2002. Performance of international joint ventures: evidence for West Africa. International Business Review, 11, 523-541.
4. Carillo, P. 1996. Managing knowledge: lessons from the oil and gas sector. Construction Management and Economics, 22(6) 63- 642.
5. Chan, E.H.W. and. Tse, E.Y.C. 2003. Cultural Considerations in International Construction Contracts. Journal of Construction Engineering and Management, 129(4), 375-381.
6. Cheng, E.W.L., Li, H., Love, P.E.D. & Irani, Z. 2004. Strategic alliances: a model for establishing long-term commitment to inter-organizational relations in construction. Building and Environment, 39, 458-469.
7. Child, J. 2002. A configurational analysis of international joint ventures. Organization Studies, 23(5), 781-815.
8. Choi, C.B. & Beamish, P.W. 2004. Split management control and international joint venture performance. Journal of International Business Studies, 35, 201-215.

9. Fang, E. & Zou, S. 2009. Antecedents and consequences of marketing dynamic capabilities in international joint ventures. Journal of International Business Studies, 40, 742-761.
10. Fisher T.F. & Ranasinghe, M. 2001. Culture and foreign companies' choice of entry mode: the case of the Singapore building and construction industry. Construction Management and Economics, 19(4), 343-353.
11. Gale A. & Luo, J. 2004. Factors affecting construction joint ventures in China. International Journal of Project Management, 22, 33–42.
12. Girmscheid, G. & Brockmann, C. 2010. Inter- and Intraorganizational Trust in International Construction Joint Ventures. Journal of Construction Engineering and Management, 136(3), 353-360.
13. Glaister, K.W. & Buckley, P.J. 1998. Management–performance relationships in UK joint ventures. International Business Review, 7, 235-257.
14. Ho, S.P., Lin, Y.H., Wu, H.L. & Chu, W. 2009. Empirical test of a model for organizational governance structure choices in construction joint ventures. Construction Management and Economics, 27(3), 315-324.
15. Kenley, R. 1988. The role of meta-analysis in construction management research. 14th Annual ARCOM Conference, 9-11 September 1998, University of Reading. Association of Researchers in Construction Management, Vol. 1, 31-8.
16. Kwok-Chun, W. & Walker, A. 2000. Property rights implications of public± private joint ventures. Construction Management and Economics, 18(2), 131-138.
17. Kwon, Y.C. 2008. Antecedents and consequences of international joint venture partnerships: A social exchange perspective. International Business Review, 17, 559-573.
18. Lane, P.J., Salk J.E. & Lyles, M.A. 2001. Absorptive capacity, learning, and performance in international joint ventures. Strategic Management Journal, 22, 1139-1161.
19. Li, D., Eden L., Hitt, M.A. and Ireland, R. D. (2008). Friends, Aquaintances, or Strangers? Partner Selection in R&D Alliances,. Academy of Management Journal, 51(2), 315-334.
20. Luo, J. 2001. Assessing management and performance of Sino-foreign construction joint ventures. Construction Management and Economics, 19(1), 109-117.
21. Luo, Y. 1997. Partner selection and venturing success: The case of joint ventures with firms in the People’s Republic of China. Organization Science, 8 (6), 648–662.
22. Luo, Y. 1998. Joint venture success in China: How should we select a good partner? Journal of World Business, 33(2), 145–166.
23. Luo, Y. 2002. Contract, cooperation, and performance in international joint ventures. Strategic Management Journal, 23, 903-919.”
24. Merchant, H. 2012. The characteristics and stock-market performance of international joint ventures located in three host-country groups: An extension and empirical validation. International Business Review, 21, 1173-1189.
25. Mohamed, S. 2003. Performance in International Construction Joint Ventures: Modeling Perspective, Journal of Construction Engineering and Management, 129(6), 619-626.
26. Nemeth, A. & Nippa, M. 2013. Rigor and Relevance of IJV Exit Research. Management International Review, 53, 449-475.
27. Norwood, S.R. & Mansfield, N. R. 1999. Joint venture issues concerning European and Asian construction markets of the 1990's. International Journal of Project Management, 17( 2), 89-93.
28. Ofori, G. 2003. Frameworks for analysing international construction. Construction Management and Economics, 21(4), 379-391.
29. Ozorhon, B., Arditi, D., Dikmen, I. & Birgönül, M.T. 2007a. Effect of host country and project conditions in international construction joint ventures. International Journal of Project Management, 25, 799-806.
30. Ozorhon, B., Arditi, D., Dikmen, I. & Birgönül, M.T. 2007b. Using Analytic Network Process to Predict the Performance of International Construction Joint Ventures. Journal of Management in Engineering, 23(3), 156-163.
31. Ozorhon, B., Arditi, D., Dikmen, I. & Birgönül, M.T. 2008a. Implications of Culture in the Performance of International Construction Joint Ventures. Journal of Construction Engineering and Management, 134(5), 361–370.
32. Ozorhon, B., Arditi, D., Dikmen, I. & Birgönül, M.T. 2008b. Effect of Partner Fit in International Construction Joint Ventures. Journal of Management in Engineering, 24(1), 12-20.
33. Ozorhon, B., Arditi, D., Dikmen, I. & Birgönül, M.T. 2010. Performance of International Joint Ventures in Construction. Journal of Management in Engineering, 26(4), 209-222.
34. Ozorhon, B., Arditi, D., Dikmen, I. & Birgönül, M.T. 2011. Toward a Multidimensional Performance Measure for International Joint Ventures in Construction. Journal of Construction Engineering and Management, 137(6), 403-411.
35. Pak, Y.S., Ra W. & Park, Y.R. 2009. Understanding IJV performance in a learning and conflict mediated context. International Business Review, 18, 470-480.
36. Park, C., Vertinsky, I. & M. Becerra, 2015. Transfers of tacit vs. explicit knowledge and performance in international joint ventures: The role of age. International Business Review, 24, 89-101.
37. Ramaseshan, B. & Loo, P.C. 1998. Factors affecting a partner’s perceived effectiveness of strategic business alliance: some Singaporean evidence. International Business Review, 7, 443–458.
38. Ren, H., Gray B. & Kim, K. 2009. Performance of International Joint Ventures: What Factors Really Make a Difference and How? Journal of Management, 35(3), 805-832.
39. Reus, T.H. & Rottig, D. 2009. Meta-analyses of International Joint Venture Performance Determinants: Evidence for Theory, Methodological Artifacts and the Unique Context of China. Management International Review, 49, 607-640.
40. Sillars, D. N. & Kangari, R. 2004. Predicting Organizational Success within a Project-Based Joint Venture Alliance. Journal of Construction Engineering and Management, 130(4), 500-508.
41. Tatoğlu, E. & Glaister, K. 1998. Performance of international joint ventures in Turkey: perspectives of Western firms and Turkish firms. International Business Review, 7, 635–656.
42. Walker D.H.T. & Johannes, D. S. 2003. Construction industry joint venture behaviour in Hong Kong—designed for collaborative results? International Journal of Project Management, 21, 39–49.
43. Werner, S. 2002. Recent Developments in International Management Research: A Review of 20 Top Management Journals. Journal of Management, 28(3), 277–305.
44. Wu, W.Y., Shih, H.A., and Chan H.C. (2009).The analytic network process for partner selection criteria in strategic alliances, Expert Systems with Applications, 36, 4646-4653.
45. Yan, A. & Gray, B. 2001. Antecedents and effects of parent control in international joint ventures. Journal of Management Studies, 38(3), 393-416.
46. Yeung, J.F.Y., Chan A.P.C. & Chan, D.W.M. 2012. Defining relational contracting from the Wittgenstein family-resemblance philosophy. International Journal of Project Management, 30, 225-239.
47. Zeybek, A.Y., O’Brien, M. & Griffith, D.A. 2003. Perceived cultural congruence’s influence on employed communication strategies and resultant performance: a transitional economy international joint venture illustration. International Business Review, 12, 499-521.
48. Zhang Y. & Li, H. 2001. The control design and performance in international joint ventures: a dynamic evolution perspective. International Business Review, 10, 341-362.
49. Zhang, G. & Zou, P.X.W. 2007. Fuzzy Analytical Hierarchy Process Risk Assessment Approach for Joint Venture Construction Projects in China. Journal of Construction Engineering and Management, 133(10), 771-779.