Strategic response to a volatile environment: the case of cross-cultural cooperative ventures

Yadong Luo, J. Justin Tan, Neale G. O'Connor

Research output: Contribution to journalArticleResearchpeer-review

15 Citations (Scopus)


Unlike free-standing companies, joint ventures involve more complex governance structures and organizational systems. Because of interpartner dependence in the managerial process, it is more difficult for joint ventures to configure their strategies with environmental dynamics. Without such configuration, however, joint ventures will suffer from operational instability and resource misallocation. This study assesses the strategic response of joint ventures to a dynamic environment. Based on a survey of top managers in international joint ventures (IJVs) in China, it is found that managerial perceptions of increased environmental complexity and hostility are positively related to an Analyzer strategy. Proactive and Defensive strategies are either negatively or non-significantly linked with perceived environmental dynamics. Further, the Analyzer strategy is associated with superior performance for IJVs in the context of an emerging economy.

Original languageEnglish
Pages (from-to)7-25
Number of pages19
JournalAsia Pacific Journal of Management
Issue number1
Publication statusPublished - 2001
Externally publishedYes


  • Environment volatility
  • Joint ventures
  • Strategic response

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