A relational perspective of nationality dissimilarity: The positive effect on organizational identification in international joint ventures

From a relational demography perspective, we examine the effects of nationality dissimilarity in the context of international joint ventures (IJVs) and their managers' identification with the IJV. Different from the majority of prior research which suggests a negative effect of nationality dissimilarity on group dynamics and firm performance, we examine the positive impact of nationality dissimilarity in a special context, the international joint ventures. Specifically, we hypothesize that nationality dissimilarity triggers higher IJV identification. As the nationality dissimilarity increases, managers are more likely to perceive the IJV as the ideal identification target since nationality dissimilarity is a positive trait of IJV. Thus, managers who want to reduce uncertainty and enhance self-esteem would identify more with such IJVs. Further, the positive effect of nationality dissimilarity is stronger for managers of low nationality status, managers who have a close relationship with the leader of the IJV and managers who identify less strongly with their parent firms. Data from a sample of top managers in 101 Sino-foreign IJVs in mainland China largely supported these predictions.From a relational demography perspective, we examine the effects of nationality dissimilarity in the context of international joint ventures (IJVs) and their managers' identification with the IJV. Different from the majority of prior research which suggests a negative effect of nationality dissimilarity on group dynamics and firm performance, we examine the positive impact of nationality dissimilarity in a special context, the international joint ventures. Specifically, we hypothesize that nationality dissimilarity triggers higher IJV identification.