Analysis Of The Influence Of Implicit Contracts On Transnational RJVs Performance

With the rapid development of economic globalization and science and technology, multinational companies have become less and less advantage to develop R&D activities separately, with the necessary knowledge and skills in various fields increasing in difficulty and depth for a single company. Due to R&D complex, uncertainty and the more serious cost of inputs, the general business has been difficult to produce the technological innovation and push it to market within the scope of their own, relying solely on their own funds, staff skills, technical equipment, etc. At the same time, entrepreneurs have realised that it can improve the adverse situation effectively to organize a new organizational model in the cross-sectoral, cross-industry. Research Joint Ventures achieve this desire for the Organizations with the risk-sharing and economies of scale and scope, the cost of inputs-sharing and avoiding unnecessary duplication of R&D.Due to the different areas, traditional practices, corporate culture and beliefs of the members of the RJVs, the function of explicit contract within the RJVs members seems not very obvious. However, implicit contract, which includes trust, reputation, expected value of cooperation and culture, can make up for the lack of explicit contracts.This paper describes the status of the fruits of the RJVs theory, and gives a brief introduction about the development of the RJVs in Japan and the United States, makes a detailed description about the development of the implicit contract. Explains the basic theories for the application of current scholars in the RJVs theory:the transaction cost theory, industrial organization theory and organizational learning theory. Describes the development process of the implicit contract from the Law to the economics. The two theories of the implicit contracts in the field of economics, one is bilateral dependence formed by special assets dedicated by Williams, while the other is bilateral relations locked by social capital. Develops a theoretical analysis from the role of the implicit contract in the RJVs, namely the expectation value of cooperation, trust and reputation and cooperation organizational performance relationship. Verifies from an empirical perspective the relationship among the expected cooperation value, trust of the implicit contract and organizational performance. Analysises coodination machanism of explicit contract and implicit contract in the RJVs in order to achieve high effectiveness and efficiency of the contract. According to the above theory, gives the relevant policy recommendations and future research directions.