Effects Of Cultural Differences On Performance Of International Construction Joint Ventures:The Moderating Role Of Inter-Organizational Trust

Along with the national strategy of "going out" and “one belt one road”,Chinese foreign contracted projects is showing rapid growth.Because of the project's characteristic of large investment and complex technology,the model of joint venture is urgently demanded.More and more Chinese contractor is going abroad to contract projects through the form of joint venture model.Joint venture model has gradually become the strategic choice to seek opportunities in the fierce competition.Although,a cooperative joint venture contract,the construction industry has become a popular choice,differences between the joint venture partners in management system,operation technology and cultural background have become an obstacle to give full play to their advantages.Especially the effect of culture is an inevitable problem in the international construction project.Based on the background described above,this article select the International Construction Joint Venture(ICJV)project as research object,choose cultural differences as research perspective,researching the relationship between cultural differences and ICJV performance,and the role of inter-organizational trust between ICJV partners in ICJV project.The article builds a model which contains national culture difference,organizational culture difference,inter-organizational trust between ICJV partners and ICJV performance.A questionnaire survey was administered to Chinese construction contractors that have established ICJVs with foreign partners.Analyze the data collected,we get the conclusions as following:National culture difference between ICJV partners has a negative effect on ICJV performances;Organizational culture difference between ICJV partners has a negative effect on ICJV performances;Inter-organizational trust between ICJV partners has a positive effect on ICJV performance;Inter-organizational trust negatively moderates the relationship between cultural differences and ICJV performance.Based on the above results,the article puts forward suggestions from two aspects which are the ICJV partner selection and ICJV project management.In addition,the article puts forward the shortcomings of the study and the possible research directions.