Cross-Cultural Adaptation and the Performance of Sino-Indonesian Joint Ventures: An Empirical Study
Abstract
China has emerged as Indonesia's largest trading partner, creating new opportunities for bilateral economic cooperation. However, challenges related to cultural differences in joint ventures have become increasingly important. Improving cross-cultural adaptability and joint venture performance is crucial to strengthen collaboration and exchange. This study aims to explain the theory of cross-cultural adaptation in joint ventures, establishing connections between employee backgrounds, cross-cultural activities, support, and networks to develop new theoretical foundations for promoting such adaptation. The study examines the dynamic impact of cross-cultural adaptation on business performance by analyzing data from 30 China-Indonesia joint ventures between 2008 and 2019. The results indicate that cross-cultural adaptation comprises four components: employee backgrounds, cross-cultural spending, support, and networks. Notably, as cross-cultural adaptability improves, joint venture performance increases significantly. Among these components, cross-cultural networks have the most substantial impact on performance. These findings suggest joint ventures should enhance cross-cultural resilience through targeted activities to improve performance.
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