The impact of environmental uncertainty on international joint venture performance: The mediating role of international joint venture adaptation

Colak M.

Journal for Global Business Advancement, vol.9, no.3, pp.231-247, 2016 (Scopus) identifier

  • Publication Type: Article / Article
  • Volume: 9 Issue: 3
  • Publication Date: 2016
  • Doi Number: 10.1504/jgba.2016.076721
  • Journal Name: Journal for Global Business Advancement
  • Journal Indexes: Scopus
  • Page Numbers: pp.231-247
  • Keywords: Bootstrapping, Environmental uncertainty, IJV, IJV performance, International joint venture, Mediation analysis, Organisational adaptation, Path analysis, SEM, Sobel test, Structural equation modelling, Turkey
  • Ankara University Affiliated: Yes

Abstract

Copyright © 2016 Inderscience Enterprises Ltd.This paper investigates the role of international joint venture (IJV) adaptation in the relationship between environmental uncertainty and IJV performance. Four hypotheses are developed concerning this relationship, predicting a direct positive relationship between uncertainty and adaptation (H1); a direct negative relationship between uncertainty and performance (H2); a direct positive relationship between adaptation and performance (H3); and a mediating effect of IJV adaptation on the relationship between uncertainty and IJV performance (H4). To test these hypotheses, path analysis, a special case of the structural equation modelling (SEM) technique, is used on questionnaire survey data from 102 manufacturing IJVs operating in Turkey. The results of this analysis were consistent with the first three hypotheses. The mediating effect of IJV adaptation (H4) was also confirmed by a Sobel test and the bootstrapping approach, suggesting that IJV adaptation mitigates the negative impact of environmental uncertainty on IJV performance.