Organizational Climate Similarity and Performance: International Joint Ventures in Russia

Abstract

This study examines how organizational climate dissimilarity between parent firms and the joint venture organization (JVO) affects joint venture performance. Data were obtained from interviews with the general manager of 40 IJVs and questionnaires were completed by top-level managers from both parents and the JVO (6 people / IJV). Results indicate that to have the best chance of success, it is important for a firm starting a joint venture to select a partner with an organizational climate similar to its own. Results also indicate that it is important to create an organizational climate at the JVO that is similar to the foreign parent's organizational climate.