The Impact of Partner and Unit Characteristics on Determinants of Conflict Management Strategies in International Joint Ventures

International joint ventures (IJVs) are common modes to enter foreign markets. However, previous research also shows that a high proportion of IJVs are later divested or at least do not reach targets set for them. Researchers have pointed out that the failures of these IJVs are due to the conflicts between partners caused by their differences in motives and national cultures. This paper examines the influence on their conflict management strategy of partner characteristics such as the IJV ownership structure, national cultural background, cultural distance, international experience of the partners, and unit characteristics such as the importance of the IJV for the partner, length of IJV partner relationship and performance of the IJV. Extending from previous studies, this study shows how different influencing factors lead to the choices of conflict management strategies by foreign parent firms.