Quantitative analysis reveals strong connection between cultural fit and joint venture performance, suggesting cultural alignment is vital for success.
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.
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