The Effect of Cultural Fit on The Sino-Foreign Joint Venture Performance of The Automobile Industry in China
DOI:
https://doi.org/10.53797/anp.jssh.v6i2.5.2025Keywords:
Cultural fit, automobile industry, Sino-foreign joint venture performance, China, Cultural Fit TheoryAbstract
This study investigates the effect of cultural fit on the performance of Sino-foreign joint ventures (SJVs) in the Chinese automobile industry. Drawing upon Cultural Fit Theory, the research analyzes how compatibility in cultural dimensions between Chinese and foreign partners influences joint venture outcomes. A positivist, quantitative methodology employing survey data and covariance-based structural equation modeling (CBSEM) was used. Results reveal a strong positive relationship between cultural fit and joint venture performance, emphasizing the critical role of cultural alignment in SJV success. The implications suggest that cultivating cultural synergy is essential for sustained performance in international collaborations.
Downloads
References
Afthanorhan, A., Awang, Z., Aimran, N., & Arifin, J. (2021). An extensive comparison between CBSEM and consistent PLS-SEM on producing the estimates of construct correlation in applied research. Journal of Physics: Conference Series, 1874(1), 012083. https://doi.org/10.1088/1742-6596/1874/1/012083.
Ali, T., Khalid, S., Shahzad, K., & Larimo, J. (2021). Managing international joint ventures to improve performance: The role of structural and social mechanisms. International Business Review, 30(1), 101791. https://doi.org/10.1016/J.IBUSREV.2020.101791.
Branstetter, L., & Li, G. (2022). Does 'Made in China 2025' work for China? Evidence from Chinese listed firms. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4254356.
Casula, M., Rangarajan, N., & Shields, P. (2020). The potential of working hypotheses for deductive exploratory research. Quality & Quantity, 55, 1703–1725. https://doi.org/10.1007/s11135-020-01072-9.
Chang, J., Wang, J., & Bai, X. (2020). Good match matters: Knowledge co-creation in international joint ventures. Industrial Marketing Management, 84, 138–150. https://doi.org/10.1016/J.INDMARMAN.2019.06.005.
Chen, Y., Lin Lawell, C.-Y. C., & Wang, Y. (2020). The Chinese automobile industry and government policy. Research in Transportation Economics. https://doi.org/10.1016/j.retrec.2020.100849.
Chi, B., & Gao, X. (2024). Cross-Cultural Adaptation and the Performance of Sino-Indonesian Joint Ventures: An Empirical Study. Journal of Intercultural Communication. https://doi.org/10.36923/jicc.v24i4.972.
Ding, Y. (2021). Identifying key success factors of international joint ventures. Proceedings of the 2021 International Conference on Transformations and Innovations in Business and Education (ICTIBE 2021). https://doi.org/10.2991/aebmr.k.210809.035.
Duan, S. (2025). Strategic Adaptation and Organizational Change of Multinational Corporations in China's New Energy Vehicle Market: A Case Study of the Automotive Manufacturing Industry. Journal of Applied Economics and Policy Studies. https://doi.org/10.54254/2977-5701/2025.20436.
Duanmu, J., & Lawton, T. (2021). Foreign buyout of international equity joint ventures in China: When does performance improve? Journal of World Business, 56(5), 101243. https://doi.org/10.1016/J.JWB.2021.101243.
Feng, J. B., & Liu, L. A. (2023). Culture fit and employee engagement in foreign subsidiaries: Evidence from Chinese multinational enterprises in the United States. International Journal of Cross-Cultural Management, 23(4), 585–611. https://doi.org/10.1177/14705958231212105.
Fengyang, L. (2023). Study on the cross-cultural management mode of Sino-foreign joint ventures. Financial Engineering and Risk Management, 6(6). https://doi.org/10.23977/ferm.2023.060605.
Gao, T., Dong, B., & Zhu, Q. (2024). Current Situation, Trend Prediction and Development Suggestions for the Export of Chinese Automobiles. International Journal of Global Economics and Management. https://doi.org/10.62051/ijgem.v2n1.19.
Hwang, J. Y. (2024). Cross-cultural communication in global business. GSC Advanced Research and Reviews, 21(3). https://doi.org/10.30574/gscarr.2024.21.3.0481.
Jin, J., & Wang, L. (2021). Resource complementarity, partner differences, and international joint venture performance. Journal of Business Research, 130, 232–246. https://doi.org/10.1016/j.jbusres.2021.03.037.
Kim, J., Yoshimoto, K., Bae, I., & Yoon, K. (2021). Inter-partner fit mechanisms for sustainable joint ventures: Evidence from Japanese firms in Korea. Journal of Korea Trade. https://doi.org/10.35611/jkt.2021.25.3.134.
Koch, B., & Koch, P. (2018). Joint venture survival in China: The importance of tangible and intangible trust. Journal of Asia Business Studies, 12(2), 173–192. https://doi.org/10.1108/JABS-05-2016-0070.
Konara, P., & Mohr, A. (2023). Cultural bridging and the performance of international joint ventures. International Business Review, 32(3), 102109. https://doi.org/10.1016/j.ibusrev.2023.102109.
Kuntner, S. (2020). Joint Venture Enterprises as Sino-Foreign Alliances. In Foreign-Invested Limited Partnership Enterprises in China (pp. 37–94). Springer. https://doi.org/10.1007/978-3-030-54181-1_3.
Li, C. (2022). Cultural friction in international joint ventures: Whose cultural distance affects market reactions? Journal of Management. https://doi.org/10.1177/01492063221104030.
Li, T., Lin, F., Zhou, M., & Zhu, T. (2024). Prevalence of state‐owned enterprise and entry mode choice of foreign firms: Evidence from China. Economics of Transition and Institutional Change. https://doi.org/10.1111/ecot.12442.
Liang, Y., Lovely, M. E., & Zhang, H. (2024). Targeted Liberalization: China's foreign investment regulation reform and its post‐WTO‐accession export surge. Review of International Economics. https://doi.org/10.1111/roie.12737.
Liu, J., Cui, Z., Feng, Y., Perera, S., & Han, J. (2020). Impact of culture differences on performance of international construction joint ventures: the moderating role of conflict management. Engineering, Construction and Architectural Management, 27, 2353–2377. https://doi.org/10.1108/ECAM-02-2019-0111.
Lu, R., Chatman, J. A., Goldberg, A., & Srivastava, S. (2023). Two-sided cultural fit: The differing behavioral consequences of cultural congruence based on values versus perceptions. Organization Science. https://doi.org/10.1287/orsc.2023.1659.
Pauluzzo, R., & Cagnina, M. R. (2019). A passage to India: cultural distance issues in IJVs’ knowledge management. Knowledge Management Research & Practice, 17(2), 192–202. https://doi.org/10.1080/14778238.2019.1599496.
Pérez-Temprano, J., Leal-Rodríguez, A., & Sanchís-Pedregosa, C. (2024). Exploring the concept of cultural fit and its impact on positive organizational outcomes. ESIC Digital Economy and Innovation Journal. https://doi.org/10.55234/edeij-3-069.
Tsai, C.-J., & Qiao, K. (2023). A cross-cultural examination of the fit between expected and observed leadership behaviors and employee satisfaction: An empirical study of the expectations and satisfaction of Chinese employees toward the leadership behaviors of their expatriate supervisors. International Studies of Management & Organization, 53(1), 19–39. https://doi.org/10.1080/00208825.2023.2174924.
Wang, Q., Bai, X., & Li, J. (2022). Achieving value co-creation through cooperation in international joint ventures: A two-level perspective. International Business Review, 31(6), 102028. https://doi.org/10.1016/j.ibusrev.2022.102028.
Yilmaz, A. (2020). Change management and cultural factors: A study of German and Chinese middle-managers’ behaviour in Sino-German automobile joint ventures. https://doi.org/10.46289/JVAA3073.
Yue, L., Yan, H., & Han, L. (2024). The carbon emission reduction effect of two-way foreign investment from the perspective of government environmental attention. Environment, Development and Sustainability. https://doi.org/10.1007/s10668-024-05679-y.
Zhang, Y. (2024). Research on Joint Venture Transformation in China's Automobile Market under the New Energy Trend. Journal of Education, Humanities and Social Sciences. https://doi.org/10.54097/6ke0k761.
Zhao, X., & Stiles, D. R. (2023). Stuck in Limbo: How sensemaking discrepancy over strategy-related performance leads to disjointed collaboration in an international joint venture. Asia Pacific Journal of Management, 1–43. https://doi.org/10.1007/s10490-023-09877-6.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Liangjun Lyu, Zuraidah Zainol
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
