Elsevier

Long Range Planning

Volume 28, Issue 3, June 1995, Pages 2-3, 26-36
Long Range Planning

Managing joint venture
Keeping international joint ventures stable and profitable

https://doi.org/10.1016/0024-6301(95)00018-EGet rights and content

Abstract

If international joint ventures are inherently unstable organizational forms, as researchers and managers have suggested, why do some ventures survive and prosper for many years? This article argues that foreign partners' knowledge of the local economic, political, and cultural environments is a critical factor in the stability of international joint ventures. When the foreign partner is no longer satisfied with access to local knowledge and seeks to acquire this knowledge, the probability of joint venture instability increases substantially. This article suggests that if managers are aware of the factors influencing joint venture stability, they may be able to prevent or control premature changes in partner relationships.

References (25)

  • P. Pekar et al.

    Making alliances work—guidelines for success

    Long Range Planning

    (1994)
  • C. Prahalad et al.

    The Multinational Mission: Balancing Local Demands and Global Vision

    (1987)
  • M. Porter

    The Competitive Advantage of Nations

    (1990)
  • P. Beamish

    The characteristics of joint ventures in developed and developing countries

    Columbia Journal of World Business

    (1985)
    J. Bleeke et al.

    The way to win in cross-border alliances

    Harvard Business Review

    (1991)
  • G. Hamel et al.

    Collaborate with your competitors—and win

    Harvard Business Review

    (1989)
    A. Inkpen et al.

    Believing is seeing: joint ventures and organization learning

    Journal of Management Studies

    (1995)
  • B. Kogut

    Joint ventures: theoretical and empirical perspectives

    Strategic Management Journal

    (1988)
    M.P. Lyons

    Joint ventures as strategic choice—a literature review

    Long Range Planning

    (1991)
  • R. Reich et al.

    Joint ventures with Japan give away our future

    Harvard Business Review

    (1986)
  • P. Killing

    Strategies for Joint Venture Success

    (1983)
    F. Root

    Some taxonomies of international cooperative arrangements

  • P. Killing

    How to make a global joint venture work

    Harvard Business Review

    (1982)
  • Killing

    How to make a global joint venture work

    Harvard Business Review

    (1983)
  • B. Kogut

    The stability of joint ventures: reciprocity and competitive rivalry

    The Journal of Industrial Economics

    (1989)
  • In our data there were several cases where a change in parent ownership precipitated termination because the new parent...
  • Cited by (0)

    View full text