TY - JOUR
T1 - Legitimacy in international joint ventures
T2 - It is still needed
AU - Alcantara, Lailani
AU - Mitsuhashi, Hitoshi
AU - Hoshino, Yasuo
N1 - Funding Information:
We appreciate comments and suggestions from Editor Mike Kotabe and three anonymous reviewers. This study was supported by the second author's research grant from the Ministry of Education, Culture, Sports, Science, and Technology's Grant-in-Aid for Young Scientists (A) (15683003) and by the third author's research grant from the Japan Society for the Promotion of Sciences' Grant-in-Aid for Scientific Research (C) (04311650). Earlier versions of this paper were presented at the 2005 AIB Southeast Asia Regional Conference in the Philippines, and at the 2005 Conference of the Japanese Association of Administrative Science in Japan.
PY - 2006/12
Y1 - 2006/12
N2 - International joint ventures (IJVs) enable foreign firms to complement their lack of local knowledge and resources by accessing their local partners' knowledge and resource bases. However, IJV formation is not simply a means of overcoming legitimacy-related challenges that stem primarily from a local market's unfamiliarity with foreign firms. This paper proposes that foreign firms can increase the legitimacy of their IJVs to facilitate local market penetration by building interorganizational linkages through which third parties and, especially, prospective customers in local markets can infer the viability and competence of IJVs. Our empirical analyses of manufacturing IJVs in Japan support our arguments.
AB - International joint ventures (IJVs) enable foreign firms to complement their lack of local knowledge and resources by accessing their local partners' knowledge and resource bases. However, IJV formation is not simply a means of overcoming legitimacy-related challenges that stem primarily from a local market's unfamiliarity with foreign firms. This paper proposes that foreign firms can increase the legitimacy of their IJVs to facilitate local market penetration by building interorganizational linkages through which third parties and, especially, prospective customers in local markets can infer the viability and competence of IJVs. Our empirical analyses of manufacturing IJVs in Japan support our arguments.
KW - International joint ventures
KW - Interorganizational linkages
KW - Legitimacy
KW - Signals
UR - http://www.scopus.com/inward/record.url?scp=33751400260&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=33751400260&partnerID=8YFLogxK
U2 - 10.1016/j.intman.2006.08.002
DO - 10.1016/j.intman.2006.08.002
M3 - Article
AN - SCOPUS:33751400260
SN - 1075-4253
VL - 12
SP - 389
EP - 407
JO - Journal of International Management
JF - Journal of International Management
IS - 4
ER -