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Instability of market penetration joint ventures: A study of UK joint ventures in the European Union

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  • Millington, A. I.
  • Bayliss, B. T.

Abstract

This paper analyses the determinants of instability in a sample of 49 transnational market penetration joint ventures, each of which has a parent in the United Kingdom and is located in another European Union country. Instability is investigated within the Cox (1972) proportional hazards model. Joint Venture instability is substantially explained within a model which encompasses the competitive relationships between the parent companies and the organisational structure of the joint venture. Although recent studies emphasise the importance of marketing and distribution joint ventures, the results in this study question their long-term viability. They were found to be unstable relative to those which also manufacture in the foreign market.

Suggested Citation

  • Millington, A. I. & Bayliss, B. T., 1997. "Instability of market penetration joint ventures: A study of UK joint ventures in the European Union," International Business Review, Elsevier, vol. 6(1), pages 1-17, February.
    • Handle: RePEc:eee:iburev:v:6:y:1997:i:1:p:1-17
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    References listed on IDEAS

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    1. Neil Kay, 1991. "Industrial Collaborative Activity and the Completion of the Internal Market," Journal of Common Market Studies, Wiley Blackwell, vol. 29(4), pages 347-362, June.
    2. Andrew I Millington & Brian T Bayliss, 1995. "Transnational Joint Ventures Between UK and EU Manufacturing Companies and the Structure of Competition," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(2), pages 239-254, June.
    3. Kogut, Bruce, 1989. "The Stability of Joint Ventures: Reciprocity and Competitive Rivalry," Journal of Industrial Economics, Wiley Blackwell, vol. 38(2), pages 183-198, December.
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    5. Lawrence G Franko, 1989. "Use of Minority and 50–50 Joint Ventures by United States Multinationals During the 1970s: The Interaction of Host Country Policies Corporate Strategies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 20(1), pages 19-40, March.
    6. Linda Longfellow Blodgett, 1991. "Partner Contributions as Predictors of Equity Share in International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(1), pages 63-78, March.
    7. Paul W Beamish & John C Banks, 1987. "Equity Joint Ventures and Theory of the Multinational Enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 18(2), pages 1-16, June.
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    Cited by:

    1. Mohr, Alexander T., 2006. "A multiple constituency approach to IJV performance measurement," Journal of World Business, Elsevier, vol. 41(3), pages 247-260, September.
    2. repec:dau:papers:123456789/2221 is not listed on IDEAS

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