The Role of Cultural Distance Across Quantiles of International Joint Venture Longevity

Abstract

Rapid global economic development and liberalization have increased the motivation and opportunities for firms to enter into international joint venture (IJV) agreements. Numerous studies in the international marketing literature have examined the impact of international partners’ cultural differences on IJV longevity; however, results are inconclusive, potentially due to limitations in the methods used. While this study examines the varied impact of cultural differences on IJV longevity based on the IJV’s age, it uses quantile regression, enabling the detection of varying effects’ strengths across the dependent variable’s entire distribution. The results demonstrate variations in the role of cultural differences across individual cultural dimensions as well as variations in the patterns of association between cultural differences and IJV longevity dependent on the IJV’s age. Implications for theory and the practice of international marketing are offered as well as potential applications of this study’s methodological approach.

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