DECLARATION
I hereby declare that this dissertation is my own work and effort. The
dissertation has not been submitted anywhere for any award. All the sources
of information used have been well acknowledged.

Date: Signature

Thansamay KOMMASITH

ACKNOWLEDGMENT

I would like to express my sincere appreciation to all the people who helped
me during my doctoral research course.
First of all, I am forever indebted to my supervisor Associate Professor Dr.
NGUYEN THI TUYET MAI (National Economics University – Vietnam) with her
fantastic personality and unbelievably supportive approach, and my colleagues.
Without their guidance and continuous support this dissertation could not have been

2.1.1 Survival and Longevity 14
2.1.2 Financial Output Measures 15
2.1.3 Overall Satisfaction 16
2.1.4 Goal Achievement 17
2.1.5 Learning 18
2.2 Literature Review on Factors Influencing IJVs’ Performance 19
2.2.1 Control of the IJV 21
2.2.2 Trust 22
2.2.3 Cooperation and Commitment 24
2.2.4 National Culture and Corporate Culture Differences 26
2.2.5 Goal Compatibility 30
2.3 Conceptual Framework 31
CHAPTER 3: RESEARCH METHODOLOGY 34
3.1 An overview of Research Approach and Research Design 34
3.2 Case Study Method 36
3.2.1 Secondary Research 37
ii 3.2.2 Primary Research 37
CHAPTER 4: RESEARCH FINDINGS 47
4.1 The Current Status of IJVs’ Performance in the Telecommunication Industry in Laos 47
4.1.1 The Telecommunication Industryin Laos 47
4.1.2 Performance of the IJVs in the Telecoms Industry in Laos 65
4.2 Factors Influencing IJVs’ Performance in the Telecommunication Industry in Laos 73
4.2.1. Identification of Factors Influencing IJVs’Performance 73
4.2.2 The Impact of Several Factors on IJVs’ Performance - Regression Findings from
Individuals’Perception 86
CHAPTER 5: CONCLUSIONS AND DISCUSION 96
5.1 Conclusions 96

GSM Global System for Mobile Communications
GOL Government of Laos
ICT Information and Communication Technologies
IJVs International Joint Ventures
ISPs Internet Services Providers
ITU International Telecommunications Union
Lao PDR Lao People’s Democratic Republic
LANIC Lao National Internet Committee
LAK Laotian Kip
LTE Long term Evolution
iv LTC Lao Telecommunication Corporation Limited
MCTPC Ministry of Communication Transport Post and Construction
MDGs Millennium Development Goals
MNEs Multiple National Enterprises
MIC Ministry of Information and Culture
MPT Ministry of Post and Telecommunications
NAPT National Authority on Post and Telecommunications
PCs Personal Computers
PM Decree Prime Minister Decree
PSTN
Public Switched Telephone Network
ROI Return on investment
ROE Return on equity
ROA Return on assets
SIM Subscriber Identification Module
SMS Short Message Service
STL Star Telecom

Table 1: Interview summary 41
Table 2: Demographic Profile of Respondents 44
Table 3: Telecoms sector in Laos – Historical Data and Forecasts 49
Table 4: Key players in Laos’ telecoms sector 66
Table 5: Perception of performance of LTC (N = 31) 67
Table 6: Perception of performance of Unitel (N = 26) 69
Table 7: Financial performance of Tigo/Beeline in the period 2010-2013 71
Table 8: Perception of performance of Beeline (N = 30) 72
Table 9: Perception of performance of the 3 IJVs (N = 87) 73
Table 10: Perception of control mechanism at the 3 IJVs (N = 87) 75
Table 11: Perception of Trust at the 3 IJVs (N = 87) 78
Table 12: Perception of cooperation and commitment at the 3 IJVs (N = 87) 79
Table 13: Perception of goal compatibility at the 3 IJVs (N = 87) 82
Table 14: Perception of cultural differences at the 3 IJVs (N = 87) 85

Table 15: Summary of descriptive statistics of 3 IJVs and ANOVA results………86
Table 16: Performance measures and factor loading results (N = 87) 88
Table 17: IDVs’ measures and factor loading results (N = 87) 90
Table 18: Descriptive Statistics and Correlations (N = 87) 92
2

Table 19: Regression results (N = 87) DV: Financial Performance 93
Table 20: Regression results (N = 87) DV: Overall Satisfaction 93
Table 21: Regression results (N = 87) DV: Goal Achievement 94
Table 22: Regression results (N = 87) DV: Learnings 951
2 the ability to compete in global trade of Lao business by giving priority to the
development of telecommunication technology with the intention to promote
sustainable development of the nation.
In line with the new Economic mechanism, the Telecommunication sector
in Laos was privatized at the year 1996 as a joint venture with a Thai investor
(Shinawana International Public Company Limited). However, this telecom
privatization policy has been revised due to the importance of a national
telecommunication development strategy which is able to resolve keen issues
such as digital divide among regions and the frequent telephonic traffic
congestion caused by a deficiency in the nation-wide telecommunication
facilities (eg. switching and telephone line capacity and human resources)
(MCTPC, 1982; MCTPC, 1990 &1995; MCTPC, 1990 – 2007).
Besides, Lao P.D.R has a responsible position for promoting telecom
development programs planned for the Greater Mekong sub-region (GMS). This
development concept of GMS proposed by Asia Development Bank (ADB) and
is applied to an area or regional development approach to GMS, promoting
networks among the six Mekong riparian countries, including supporting
activities for a common standard of telecom services availability which is
increasing in Laos. Telecommunication increased steadily from 2007 to 2011
(MCTPC, 2007 – 2011).
There are some communication policy studies undertaken by scholars and
media and political organization, but research on International Joint Ventures
(IJVs) in Telecommunication industry in Laos has been limited. Especially, it
seems that very modest attention has been given to investigateIJVs’ performance
and factors influencing it in the industry in Laos. Thus, these issues will be the
focus of this research.
Regarding telecommunication service policies in Laos, National Authority

2010). (before 2010 – foreign private owner)

The number of internet service providers (ISPs) has grown from two in
1990s to about seven after nearly 15 years. They are ETL internet, Lao telecom
Planet online, Lane Xang internet, Sky telecom KPL and Mill com. The entry of
Milliom and Sky, the large shareholding by Shincorp, the operation of Planet and
prevalence of Voice Over Internet Protocol (VOIP) operators show that private
4 investors are willing to invest in Laos even under the current policies and
regulatory regime. However, such investors are still primarily focus on central of
Vientiane and major urban center. Therefore, adjustments are necessary to be
added to current policies and regulatory framework in order to further develop
the telecom sector through these strong private investors (MPT, 2011).
1.1.2 Factors influencing IJVs’ Performance in Telecommunication
Industry in Laos
Many scholars and practitioners have conducted research about what
factors affecting the performance of IJVs. However, their research has mainly
conducted in the context ofthe developed countries (Ren et al., 2009). Many
previous studies (e.g., Hoang & Rothaermel, 2005; Isobe, Makino, &
Montgomery, 2000; Luo, 2001; and Tong et al., 2008) have examined IJVs
performance, which enhanced human beings’ knowledge about this attractive
topic. However, the conceptualization of IJV performance and factors
influencing it remains an often-debated issue in IJV research (Reus & Ritchie,
2004).
In recent years, more researchattention hasbeen given to studyIJVs
performance and factors influencing IJVs performance in the context of
developing countries (e.g. Phan & Ngo, 2009; Phan et al., 2006; Cao, 2012) but
it seems that very modest research attention has been given to investigate the

more and more ISPsentering into the industry such as LaoTel, LaneXang Internet
and many Internet companies, which has official ISP licenses from The MPT
(APT Regional Forum for ICT Experts in south-East Asia Jakarta, 4-5 February
2004) (BMI, 2012).
The telecoms industry in Laos is receptive to foreign investment. With the
exception of the Enterprise of Telecommunications Lao, the remaining three
mobile operators are supported by foreign companies with telecoms knowledge.
However, according to BMI’s Risk Reward table, Laos is not as attractive as its
regional peers and a significant part of its low score to be attributed to its low
country risk score of 40.5.
Laos' long-term political outlook depends heavily on how well the country
balances between the need to spur economic growth to achieve its millennium
6 development goals and the need to address corruption in the country. Heavy
reliance on foreign aid and development assistance also means that the country's
policies will remain susceptible to the political and economic interests of its
much more powerful neighbours.
Addressing corruption is expected to remain top of the government's
agenda over the coming years. The Lao PDR's decision to devote most of its
attention and resources to achieving its Millennium Development Goals
(MDGs).
For facilitating the sustainable development and ensure the success of
IJVs in the important fields like the telecommunication industry in Laos, it is
very essential to have better understanding of the current status of the IJVs’
performance and investigate the determinants of the IJVs’ success or failure.
While focusing on the main objective of investigating the impact of
several factors on performance of the IJVs in telecommunication industry in
Laos, this study aims to answer the following questions:

2009), commitment, bargaining power, justice, conflict, effectiveness of conflict
resolution, cooperation, and goal compatibility (cf., Ren et al., 2009).
1.3 Research Methodology
In this study, both secondary data and primary data were collected to
develop the three case studies in order to reflect IJVs’ performance and the
factors influencing their performance during the time of the research.
As this study mainly aims to analyze factors influencing FDI companies’
performance in the selected cases, multiple data collection methods were used to
increase credibility and validity. In this study, both secondary data and primary
data are useful to answer the research questions.
To serve the purpose of case study investigation, both qualitative and
quantitative data were collected. For each case study, the author first collected
qualitative data, and then collected qualitative data. The main purpose of
collecting qualitative data is to explore and discover the relevant concepts and
the interested relationships among them in the new context of Laos’
telecommunication industry. Specifically, the concepts of IJV’s performance and
8 its dimensions and the factors influencing IJVs’ performance were explored. The
relationships between the factors and the IJVs’ performance were also examined.
The survey data were collected to provide empirical findings regarding the
current status of the IJVs’ performance in the telecom industry in Laos and
empirical evidence on the impact of some factors influencing the IJVs’
performance.
Specific data collection methods used in this study include desk research
(for collecting secondary data), observation, interviews (both face-to-face and by
telephone), and survey (for collecting primary data).
1.4 Contribution of the Study
Theoretical contribution: As the global proliferation of IJVs continues

between the local partners and foreign partners, and other factors that could
affect IJV performance, this dissertation has the potential to provide insight that
may benefit:
For Corporate executives and managers: by providing them with
knowledge and insight that would improve their strategic partnering decisions,
and in turn the IJV and firm performance. Executives who better understand the
dynamic roles played by institutional factors in partner selection, and the impact
these factors have on IJV performance, would be better able to take advantage of
the various opportunities that exist in the global arena.
For IJVs: By providing knowledge that may serve to enhance their
performance. To adapt and perform effectively in a host country, firms must
comprehend and appreciate those factors that affect their partner selection
decision and venture’s performance. For foreign partners, especially who are
multiple national enterprises (MNEs), an understanding of how the host
country’s legal environment influences top management’s concerns, its
behaviors and IJV performance is central to decisions on entry and expansion.
Such an understanding would certainly enable foreign partners to improve their
partnering success rate, and in turn to enhance firm performance.
For Policymakers and trade organizations: By providing them with an
understanding of international partnering policy makers may enable the
construction of appropriate laws and regulations that better serve international
10 inter-firm collaboration. A better understanding of how the host country legal
environment affects cross-national partnering activities would assist
governmental entities in anticipating the probable impact of alternative policy
options available to them. Such anticipation may lead to the establishment of
policies that facilitate free and open trade and investment. In particular, such
insight may promote the importance of transparency, stability and cooperation


CHAPTER 2: LITERATURE REVIEW AND CONCEPTUAL
FRAMEWORK

This chapter reviews the literature on IJVs’ performance and the factors
influencing it. In the first section of the chapter, the literature on IJVs’
performance is reviewed. Specifically, the detailed reviews of five common
measures of IJV performance were provided. In the second section, the author
reviews the key factors that are proposed to have significant impact on IJV
performance. Finally, the proposed conceptual framework is presented.

2.1 Literature Review on International Joint Ventures’ Performance
The topic on international joint venture and its performance has attracted
much research interest from many scholars and practitioners. There have been
numerous research examining IJVs since the first critique of the literature on
international joint ventures (IJVs)of Yan and Zeng (1999). These studies have
greatly enhanced our understanding of IJV operations (e.g., Cao, 2012; Hoang &
Rothaermel, 2005; Isobe, Makino, & Montgomery, 2000; Luo, 2001; Tong,
Reuer, & Peng, 2008).
Many researchers define IJVs as jointly owned organizational entities by
two or more legally distinct organizations, in which the headquarters of at least
one is located outside the country of operation of the entity, following Shenkar
and Zeira (1992). Based on this definition, their view is specifically limited to
equity IJVs. In addition, they primarily focus on those studies that directly and
empirically examined IJV performance, and some studies did not cover those
ones whose dependent variable is not performance (e.g., IJV formation,
employee commitment, employee turnover). Cao (2012, p. 72) noted that
although the term IJV has many different meanings, the most common definition
of IJV is “a separately legal business venture that involves two or more entities
13

14 2.1.1 Survival and Longevity
It is noted that IJV’s performance reflects how partners of the IJV have
been effectively working together (Nguyen, 2011). The number of years working
together, therefore, should be an important signal of IJVs’ performance. In
literature, many previous studies have used Survival or Longevity as one
indicator of IJV performance (e.g., Dhanaraj & Beamish, 2004; Gaur & Lu,
2007; Lu & Xu, 2006; Meschi & Riccio, 2008; Steensma & Lyles, 2000). The
reason for using this indicator of IJV performance is that the longer the IJV
survives, the more successful it is.An IJV is expected to be sustainable only as
long as it represents the most efficient organization mode. In other words,long
time of survival is a sign of IJV success and termination is a sign of IJV failure
(cf., Ren et al., 2009).

The above argument, however, may not betrue in all cases. Rent et al.
(2009) argued that relying on only the information of IJV age, it is impossible to
conclude that the 10-year IJV has a better performance than the 5-year IJV (see
Lyles & Baird, 1994 also). The information of an IJV’s longevity although may
beuseful information regarding the IJV’s performance this information could
provide an insufficient basis for comparing its performance with other IJVs.

On the other hand, it is also argued that using termination of the IJV as a
measure of its failure may cope with some problems when concluding that all
terminated IJVs are unsuccessful. In practice, there are various reasons leading to
an IJV’stermination. Even, an IJV termination may actually signal its success
because IJVs may be terminated once participants have successfully
accomplished their initial objectives (Gomes-Casseres, 1987; Kumar, 2005; cf.,
Ren et al., 2009). Therefore, in some cases, employingLongevity as a sign of

due to the unavailablility of the data and because in many cases it is very difficult
to access this kind of information from the interested organizations.
Inspite of the problems associated with the financial output measures,
16 these objective measures of performance are still desirable (e.g., Luo, 2002a,
2002b, 2007a). Moreover, it is preferable when financial measures can be used
together with subjective measures and it can help to validate the subjective
performance measures. In literature, high correlation between subjective (e,g.,
satisfaction with IJV performance) and objective performance measures (e.g.,
return on assets and return on sales) has been consistently found (e.g., Choi &
Beamish, 2004; Isobe et al., 2000). Therefore, many previous studies have
simultaneously employed both subjective and objective measures (e.g., Dhanaraj,
Lyles, Steensma, & Tihanyi, 2004; Luo, 2001). Such integration can increase the
measurement validity and makes the research results more robust. In this study,
the author decided to employ both objective and subjective measures of IJV
performance
.
2.1.3 Overall Satisfaction
Many previous studies have used managers’ subjective evaluations of the
IJV’s overall performance (e.g., Boateng & Glaigster, 2002; Cao, 2012;
Demirbag & Mirza, 2000; Kwon, 2008; Li & Hambrick, 2005; Luo & Park,
2004; Nakos & Brouthers, 2008; Yeheskel, Zeira, Shenkar, & Newburry, 2001).
In this line, the IJVs’ performance has been measured based on the perception of
how partners and the parent firm are satisfied with the IJV’s performance and
how they are satisfied with the co-operation and partnership in the IJV.
Although overall satisfactionhas been a commonly used performance
measure for IJVs, several limitations associated with this measure are noted as
follows.

Robson, Katsikeas, & Bello, 2008).Compared to other measures such as IJV
survival, financial outcomes, and IJV overall satisfaction, achievement of
individual or joint goals can be measured from each of the partner firm’s
perspectives and also from IJV as a whole’s perspective.

This measure is important because it is assumed that the partners of an IJV
join the IJV to achieve their strategic goals by complementing each other’s