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Contextual Distance and the International Strategic Alliance Performance: A Conceptual Framework and a Partial Meta-analytic Test

Published online by Cambridge University Press:  08 June 2015

Jiatao (J.T.) Li ,
Li Tian  and
Guoguang Wan
Jiatao (J.T.) Li
Affiliation:
Hong Kong University of Science & Technology, China
Li Tian
Affiliation:
Nankai University, China
Guoguang Wan
Affiliation:
Hong Kong University of Science & Technology, China
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Abstract

We propose an integrative model on how contextual distance influences the learning process and performance of international strategic alliances (ISAs). We argue that contextual distance increases knowledge diversity but decreases knowledge exchange between the alliance partners, which has implications for the alliance's knowledge creation and performance. A meta-analysis of 46 empirical studies published between 1990 and 2013 dealing with Sino-foreign collaborations in China revealed that contextual distance showed an inverted U-shaped relationship with alliance performance. Proxies for partners’ contextual experience, for example, the length of an alliance's operation in China, the foreign partners’ in-country experiences, and ISAs’ location in a more developed Chinese region, moderate the learning processes. Implications and directions for future research are discussed.

Keywords

Chinacontextual distancecontextual experienceinternational strategic allianceslearning
Type
Articles
Information
Management and Organization Review , Volume 11 , Issue 2 , June 2015 , pp. 289 - 313
Copyright
Copyright © The International Association for Chinese Management Research 2015 

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