When competition eclipses cooperation: an event history analysis of joint venture failure
Article Abstract:
An event history analysis of joint venture failure is conducted. A transaction-cost economics perspective is adopted and the joint ventures are modeled as governance structures that combine the advantages and disadvantages of both markets and hierarchies. A data base on electronics industry joint ventures is used to identify predictors of joint venture failure. The results indicate that the presence of competition between joint venture partners outside of the agreement lessens the chances for success. The failure rate of joint ventures is nonmonotonic, rising and peaking during the middle term before declining. Managers are advised to realize the importance of of partner selection. Administrative flexibility is the key to joint venture success.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1996
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The transaction costs theory of joint ventures: an empirical study of Japanese subsidiaries in the United States
Article Abstract:
The factors affecting Japanese manufacturing firms' selection of full or partial ownership of their US subsidiaries were examined. The transaction costs theory of ownership choice was used to explain why Japanese firms chose wholly-owned subsidiaries and equity joint ventures. The results indicated that Japanese investors' choice of ownership was affected by the same basic criteria that determined the selections made by US firms. Japanese parent companies entered into joint ventures when they needed to combine intermediate inputs subject to high market transaction costs with other firms. There was also a strong positive relationship between full ownership of subsidiaries and R&D expenditures.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1991
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The relationship of industry evolution to patterns of technological linkages, joint ventures, and direct investment between U.S. and Japan
Article Abstract:
Japanese investment in US industries takes three common forms. These are direct investment, joint ventures and technological linkages. An examination is conducted of how these forms of resource investments are linked to the stage of industry evolution a particular industry affected by Japanese investment is at. The results reveal some basic patterns in Japanese investment in the US. As a rule, Japanese firms make direct investments only in maturing industries, preferring to undertake joint ventures in growing industries, while opting for technological linkages in emerging industries.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1992
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