STRATEGIC, ORGANIZATIONAL, AND CULTURAL FIT: EFFECTS ON PERFORMANCE IN CHINA-U.S. JOINT VENTURES

Bruce A. Heiman
San Francisco State University
Weining Li
South China University of Technology
George Chan
University of San Francisco
Salvador D. Aceves
University of San Francisco

ABSTRACT

We explore the effects of three categories of fit on US-China joint-venture performance using four performance measures. Many studies prescribe strong fit across multiple categories as necessary for high performance, but little rigorous analysis supports this. Three important threads of existing “fit” research resonate in the literature: strategic, cultural and organizational fit. We analyze an original survey dataset of over 80 US-China JVs, and test for effects of fit-categories using two measures for each thread. Additionally, multiple control factors give a compelling look at a complete model of fit’s effects on JV performance. Objective congruence (strategic fit) among JV partner-firms, impacts two performance-measures. Efficacy of managerial communications (cultural fit) also matters, as does harmony regarding hiring decisions (organizational fit). Our findings are a step forward empirically, and partly resolve persistent questions about partner-fit in JVs and performance.

Keywords: strategic, fit, China, joint-venture, performance, empirical