Equity Control and the Survival of International Joint Ventures: A Contingency Approach
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 survival rates.
Equity control, International joint venture, Contingency approach
Entrepreneurial and Small Business Operations
Journal of Business Research
Lu, Jane Wenzhen and Hebert, Louis.
Equity Control and the Survival of International Joint Ventures: A Contingency Approach. (2005). Journal of Business Research. 58, (6), 736-745. Research Collection Lee Kong Chian School Of Business.
Available at: http://ink.library.smu.edu.sg/lkcsb_research/2376