Modeling the strategic mutation of international joint ventures: Insights from 494 international joint ventures

Purpose: This study aims to investigate the influence of various categories of institutions on international joint ventures' (IJV) strategic mutation behavior from an institutional perspective. Design/methodology/approach: The authors test their hypotheses using a sample of 494 Chinese small and medium IJVs over a three-year period (2006-2008). They conducted empirical result with Cox hazard models. Findings: Changes in law environment will increase the likelihood of IJVs' strategic mutation. Changes in governmental policy will increase the likelihood of IJVs' strategic mutation. The positive correlativity between the variance of law environment and the propensity of IJVs' strategic mutation will be positively moderated by the distance of normative institutional pillar. The positive correlativity between the variance of governmental policy and the propensity of IJVs' strategic mutation will be negatively moderated by IJV performance. Originality/value: Variation of regulatory institutional pillar increases the likelihood of IJVs' strategic mutation. Meanwhile, the effects of law environment and governmental policy, which are two types of regulatory institutional pillar, are moderated by normative institutional pillar and firms' performance, respectively.