TRUST EFFECT ON SINO-MONGOLIAN IJV PERFORMANCE

Abstract

For the last few years, the number of international joint ventures has been increasing and IJV success factors draw scholars’ attention. In many different cultures, especially in IJV, many scholars agreed that trust is an important factor in successful IJV. Most of international investments in Mongolia are from Chinese organizations. The purpose of this paper is to examine level of trust and its’ impact on organization’s performance in Sino-Mongolian IJV. Results show that trust does have impact on performance and Mongolian employees have lower level of trust compared to Chinese employees. Also results show that, people with experience in abroad have higher level of trust and performance satisfaction. Moreover, employees had higher level of trust, but managers had higher level of satisfaction in IJV performance. The findings of this paper will help future researchers and investors, and have provide implications and limitations for further research.