Intercontinental Partnerships: Analyzing the Effects of Perceived Commitment on the Success of B2B Joint Ventures between Austria and China.

Abstract

In this globalized time, companies often pick international joint ventures as an entry strategy. Once a fitting partner is found, the joint venture has to be successful to satisfy both parties. Research mentions a lot of success factors that have been extensively researched. Perceived commitment, however, is one that still lacks representation in research, especially when it comes to certain countries and cultures. Three research questions were drafted in order to provide guidance for the research and avoid straying from the topic: RQ1: How does perceived commitment influence the success of IJVs? RQ2: What factors within perceived commitment (affective, normative, continuance) have a more pronounced impact on IJV success in this context and why? RQ3: What cultural differences may influence the perception of their partner´s commitment to IJVs and why? The first step to proofing the connection between perceived commitment and success is to find the right way of measuring success. There are many ways to do so, but the most comprehensive one is by asking for the subjective opinion of management on partly objective measures. Those include but are not limited to the performance satisfaction and fulfillment of strategic goals. Commitment is an inter-partner factor that has shown to be an important factor for IJV performance since it lessens the opportunistic behavior of the partners. It has 3 subcategories, normative, affective, and continuance commitment, which make up commitment as a whole. Due to the international setting of this research, it is also necessary to analyze the cultural differences and how those could affect the perception of commitment. A qualitative research approach of conducting semi-structured interviews was used to gather primary data on this topic. The sample size consists of 6 interviews with individuals in middle and higher managerial positions from Austrian B2B companies that currently have or had a Joint Venture in China. To decrease bias another semi-structured interview was conducted with an individual who grew up in China and moved to Austria as a university student. This interview allowed for a broader view of the cultural differences. After meticulously analyzing the gathered data, the connection between the success of IJVs and perceived commitment was evident. Existing perceived commitment leads to higher success. Furthermore, it was discovered, that affective commitment is the subgroup that has a more pronounced impact on IJV performance due to its intrinsic nature. Furthermore, adapted ways of communicating with an international joint venture partner ensure the clear conveyance and perception of commitment.

Date of Award	2024
Original language	English
Supervisor	Wolfgang Schwaiger (Supervisor)