Human resources and international joint venture performance: a system perspective

Building on general systems theory, we argue that the multi-system nature of the international joint venture (IJV) drives two distinct but inter-related sets of human resource (HR) issues: a set whose core is mainly within the venture subsystem (within-IJV HR set), producing a detrimental impact on venture performance; and a set associated mainly with the relational tension along the interface between the parent and the venture subsystem (relational/interface HR set). The relational set is detrimental at the system level, but actually has a positive performance impact at the venture subsystem level. Hierarchical regression results from a sample of 265 China-based IJVs offer support for the above hypotheses developed around the two sets of HR issues. We discuss implications for IJV theory, research, and practice. Journal of International Business Studies (2005), 36, 505–518. doi:10.1057/palgrave.jibs.8400154