Publication Type
Book Chapter
Version
acceptedVersion
Publication Date
3-2019
Abstract
Joint ventures (JVs) are commonly used by firms to enter into foreign markets. Firms often have high expectations when forming international joint ventures (IJVs). However, IJVs pose serious challenges and many fail to deliver the expected benefits found that the executives he interviewed were not satisfied with more than half of their IJVs, which is consistent with a recent McKinsey report in which senior managers indicated that more than 40 percent of their JVs underperform compared to initial expectations. Similarly, Madhok and Tallman (1998: 326) observed that despite their popularity, collaborations between firms are “characterized by a high level of dissatisfaction with their actual outcomes relative to expectations and, correspondingly, a high rate of failure.”
Keywords
Joint ventures, international joint ventures, satisfaction, outcomes
Discipline
International Business | Strategic Management Policy
Research Areas
Strategy and Organisation
Publication
Frontiers of strategic alliance research: Negotiating, structuring and governing partnerships
Editor
Farok J. Contractor & Jeffrey J. Reuer
First Page
395
Last Page
410
ISBN
9781108416276
Identifier
10.1017/9781108236188.024
Publisher
Cambridge University Press
City or Country
Cambridge
Citation
ERTUG, Gokhan; CUYPERS, Ilya; Noorderhaven, Niels G.; and BENSAOU, Ben.
The double-edged sword of high expectations: Presumptive trust, reflective trust, and satisfaction in international joint ventures. (2019). Frontiers of strategic alliance research: Negotiating, structuring and governing partnerships. 395-410.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/4337
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1017/9781108236188.024