A multi-dimensional performance measurement of petrochemical joint venture projects through partial least square structural equation modeling (PLS-SEM)

The importance of partner selection with regard to any type of cooperation between partners in International Joint Venture (IJV) has been agreed on, but the amount of studies analyzing the relationship between partner selection, operation and IJV performance as a whole framework has so far been surprisingly limited. This paper tries to shed some light on this gap to obtain a better understanding of factors that influence formation and operation stage of an international joint venture and measure the performance of IJV as a three-dimensional construct considering the performance of the project, the IJV partners, and the IJV management. The study aims to use partial least squares (PLS) as an evolving approach to structural equation modeling (SEM) methodology to achieve greater understanding of the intricate network of relationships between factors. The conceptual model is built up and then we applied this model in the analysis of persian partners of petrochemical JVs through a questionnaire survey. The results show that the three dimensional IJV performance depends on identifying potential partners and selection as well as inter-partner fit and strategic fit variables. At the end, conclusions are made and limitations are discussed together with an outline of future research directions

Keywords:

International Joint Ventures (IJV) , Petrochemical projects , PLS-SEM , Performance measurement