Is coopetition between foreign and local partners good or bad for international joint venture (IJV) performance? This study develops a contingent view to examine how the efficacy of coopetition is conditional on IJV characteristics (i.e., foreign equity share and partner cultural compatibility) and environmental factors (i.e., technological turbulence and market growth). The results from analyzing 194 IJVs in China reveal that coopetition fosters IJV performance under the conditions of high foreign equity share, low partner cultural compatibility, high technological turbulence, and/or high market growth. In contrast, coopetition hinders IJV performance at low levels of foreign equity share, technological turbulence, and/or market growth, or at high levels of partner cultural compatibility. These findings support the authors’ contingent view of coopetition and provide novel insights for managing partner coopetition in IJVs.

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Whether international ventures can benefit from their marketing capability in emerging markets is a critical but underresearched issue. Drawing on the resource-based view (RBV), the authors propose that marketing capability can enhance international ventures’ new product performance. However, its effect is contingent on environmental forces (i.e., market uncertainty and technological turbulence) in the highly uncertain and turbulent environments of emerging markets. Using survey data of international ventures in high-tech industries in China, the authors find that marketing capability is less effective for new product development when firms face high levels of market uncertainty or technological turbulence. At that time, enhancing knowledge breadth represents a critical strategic solution to address the decreased efficacy of marketing capability in driving innovation.