IJV Performance, Organizational Capabilities and the Moderating Effect of Internal and External Factors

We contribute to the IJV literature by investigating the importance of dynamic and ordinary capabilities as determinants of IJV performance. We posit that, in the context of IJVs, the effect of dynamic and ordinary capabilities on IJV performance is contingent upon internal organizational and external environmental factors. We use survey data collected from 100 CEOs engaged in equity based IJVs of UK MNEs in India and China and test our hypotheses on both, long-term and short-term IJV performance. We find that IJV ordinary and dynamic capabilities foster long-term organizational performance, and that this relationship is moderated by the host country’s technological capacity in the long-term and by IJV’s age in the short-term. Our theorizing and findings establish a link between dynamic and ordinary capabilities and IJV performance literature