Equity control and the survival of international joint ventures: a contingency approach
نویسندگان
چکیده
This study attends to equivocal results regarding the relationship between equity control and international joint venture (IJV) performance by proposing a transaction-cost-based contingency framework. We examined the moderating effects of asset specificity and uncertainty on the relationship between foreign parent equity control and IJV survival in an empirical setting of Japanese IJVs in 12 Asian countries in the 1985–1996 period. Our findings suggest that in the presence of high asset specificity, high levels of foreign equity control can lead to higher IJV survival rates. Furthermore, we find that social knowledge can serve as a substitute for equity control in IJVs and contribute to higher IJV
منابع مشابه
Control of international joint ventures
Prior research has found that many international joint ventures (IJVs) fail. Some authors have suggested that control problems are one of the primary causes of IJV failures. However, little IJV-related research has focused on control issues. This paper reports the results of a largely exploratory study of the control practices employed by partners involved in three arguably successful IJVs. The...
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