In Search of Complementarity

This paper presents the results of an integrative examination of three important determinants of international joint venture (IJV) performance: complementarity, control and cooperation. Past research has examined these concepts primarily from the perspective of the foreign investing partners. This present study proposed and empirically tested a model that examines the relationship between complementarity, control, cooperation, and their influence on IJV performance, from the perspective of the local partners as well as that of their foreign counter parts in China-foreign joint ventures. The results indicate that complementarity and cooperation have direct impacts on performance, and that the effects of control differ between local and foreign partners to IJVs.