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Management International Review

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13.05.2019 | Research Article

How Do International Joint Ventures Build Legitimacy Effectively in Emerging Economies? CSR, Political Ties, or Both?

verfasst von: Xuan Bai, Jeanine Chang, Julie Juan Li

Erschienen in: Management International Review | Ausgabe 3/2019

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Abstract

Legitimacy has been identified as an important factor influencing the survival of international joint ventures (IJVs). Yet empirical studies exploring IJV strategies for gaining post-formation legitimacy are scarce. This study examines how IJVs accumulate legitimacy after their formation in China. We identify two non-market strategies, namely corporate social responsibility (CSR) and political ties, and compare their effects on gaining two types of legitimacy: political legitimacy and market legitimacy. Data obtained from senior and middle IJV managers in China lends empirical support for the direct effects of CSR and political ties on IJV legitimacy-building. Surprisingly, we find that CSR has a stronger effect on gaining both political and market legitimacy than political ties. Furthermore, both political and market legitimacy contribute to IJVs’ performance.

Vorheriger Artikel Age Matters: The Contingency of Economic Distance and Economic Freedom in Emerging Market Firm’s Cross-Border M&A Performance

Nächster Artikel Export Performance in SMEs: The Importance of External Knowledge Search Strategies and Absorptive Capacity

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Titel: How Do International Joint Ventures Build Legitimacy Effectively in Emerging Economies? CSR, Political Ties, or Both?
verfasst von: Xuan Bai
Jeanine Chang
Julie Juan Li
Publikationsdatum: 13.05.2019
Verlag: Springer Berlin Heidelberg
Erschienen in: Management International Review / Ausgabe 3/2019
Print ISSN: 0938-8249
Elektronische ISSN: 1861-8901
DOI: https://doi.org/10.1007/s11575-019-00382-x

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