Investigation of the Effect of Cultural Fit in International Construction Joint Venture Performance

Abstract

International joint ventures (IJVs) have a great importance as a strategic alternative in global competition. Cultural differences between partners from different countries may cause lower performance levels in such ventures. The major objective of this study is to investigate the influence of national and organizational culture fit of partners on the IJV performance. In this respect, a questionnaire survey was administered to medium to large scale contractors, which are the members of the Turkish Contractors Association (TCA). A total of 68 project data was studied using regression and correlation analysis. Organizational and national culture fit between Turkish firms and their foreign partners was investigated. It is observed that compared to the national culture, organizational culture has a more significant effect on the IJV performance