IDEAS home Printed from https://ideas.repec.org/a/spr/grdene/v9y2000i6d10.1023_a1008726920290.html
   My bibliography  Save this article

A Learning-Based Theory of Joint Venture Life-Cycles

Author

Listed:
  • Prabal Roy Chowdhury

    (Jawaharlal Nehru University)

  • Indrani Roy Chowdhury

    (Jawaharlal Nehru University)

Abstract

We provide a two period, learning-based model of joint venture formation and breakdown. We show that depending on parameter values different dynamic patterns emerge. If the rate of learning is low, then a joint venture forms in both the periods. If the rate of learning is large, then the outcome may either involve joint venture breakdown, or delayed joint venture formation.

Suggested Citation

  • Prabal Roy Chowdhury & Indrani Roy Chowdhury, 2000. "A Learning-Based Theory of Joint Venture Life-Cycles," Group Decision and Negotiation, Springer, vol. 9(6), pages 457-470, November.
    • Handle: RePEc:spr:grdene:v:9:y:2000:i:6:d:10.1023_a:1008726920290
    DOI: 10.1023/A:1008726920290
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1023/A:1008726920290
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1023/A:1008726920290?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stephen W. Salant & Sheldon Switzer & Robert J. Reynolds, 1983. "Losses From Horizontal Merger: The Effects of an Exogenous Change in Industry Structure on Cournot-Nash Equilibrium," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(2), pages 185-199.
    2. Rikard Larsson & Lars Bengtsson & Kristina Henriksson & Judith Sparks, 1998. "The Interorganizational Learning Dilemma: Collective Knowledge Development in Strategic Alliances," Organization Science, INFORMS, vol. 9(3), pages 285-305, June.
    3. Marjit, Sugata, 1990. "Rationalizing public-private joint ventures in an open economy : A strategic approach," Journal of Development Economics, Elsevier, vol. 33(2), pages 377-383, October.
    4. Marjit, Sugata, 1991. "Incentives for cooperative and non-cooperative R and D in duopoly," Economics Letters, Elsevier, vol. 37(2), pages 187-191, October.
    5. Chan, Raissa & Hoy, Michael, 1991. "East--West joint ventures and buyback contracts," Journal of International Economics, Elsevier, vol. 30(3-4), pages 331-343, May.
    6. Michael L. Katz, 1986. "An Analysis of Cooperative Research and Development," RAND Journal of Economics, The RAND Corporation, vol. 17(4), pages 527-543, Winter.
    7. Combs, K. L., 1993. "The role of information sharing in cooperative research and development," International Journal of Industrial Organization, Elsevier, vol. 11(4), pages 535-551.
    8. Ray Chaudhuri, Prabal, 1995. "Technological asymmetry and joint product development," International Journal of Industrial Organization, Elsevier, vol. 13(1), pages 23-39, March.
    9. Jan Svejnar & Stephen C. Smith, 1984. "The Economics of Joint Ventures in Less Developed Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(1), pages 149-167.
    10. Yu, Eden S. H. & Chi-Chur, Chao, 1996. "Are wholly foreign-owned enterprises better than joint ventures?," Journal of International Economics, Elsevier, vol. 40(1-2), pages 225-237, February.
    11. Al-Saadon, Yousef & Das, Satya P., 1996. "Host-country policy, transfer pricing and ownership distribution in international joint ventures: A theoretical analysis," International Journal of Industrial Organization, Elsevier, vol. 14(3), pages 345-364, May.
    12. Bardhan, Pranab K, 1982. "Imports, Domestic Production, and Transnational Vertical Integration: A Theoretical Note," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 1020-1034, October.
    13. Gary Hamel, 1991. "Competition for competence and interpartner learning within international strategic alliances," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 83-103, June.
    14. Rajesh Kumar & Kofi O. Nti, 1998. "Differential Learning and Interaction in Alliance Dynamics: A Process and Outcome Discrepancy Model," Organization Science, INFORMS, vol. 9(3), pages 356-367, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ángeles Montoro-Sánchez & Marta Ortiz-de-Urbina-Criado & Ana M. Romero-Martínez, 2009. "The Decision to Use Alliances as Corporate Entrepreneurship: The Role of Resources and Skills," Group Decision and Negotiation, Springer, vol. 18(5), pages 431-448, September.
    2. Marjit, Sugata & Chowdhury, Prabal Roy, 2004. "Asymmetric capacity costs and joint venture buy-outs," Journal of Economic Behavior & Organization, Elsevier, vol. 54(3), pages 425-438, July.
    3. Kabiraj, Tarun & Roy Chowdhury, Prabal, 2008. "Adoption of new technology and joint venture instability," Research in International Business and Finance, Elsevier, vol. 22(2), pages 108-123, June.
    4. Rituparna Kaushik & Sourabh Bikas Paul, 2021. "Strategic Interactions, Bargaining Power and Stability of Joint Venture in an Emerging Nation," Journal of Industry, Competition and Trade, Springer, vol. 21(4), pages 543-564, December.
    5. Banerjee, Shantanu & Mukherjee, Arijit, 2010. "Joint venture instability in developing countries under entry," International Review of Economics & Finance, Elsevier, vol. 19(4), pages 603-614, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roy Chowdhury, Prabal & Roy Chowdhury, Indrani, 2001. "Joint venture instability: a life cycle approach," MPRA Paper 1556, University Library of Munich, Germany, revised Jan 2007.
    2. Marjit, Sugata & Chowdhury, Prabal Roy, 2004. "Asymmetric capacity costs and joint venture buy-outs," Journal of Economic Behavior & Organization, Elsevier, vol. 54(3), pages 425-438, July.
    3. Roy Chowdhury, Indrani & Roy Chowdhury, Prabal, 2001. "A theory of joint venture life-cycles," International Journal of Industrial Organization, Elsevier, vol. 19(3-4), pages 319-343, March.
    4. Prabal Roy Chowdhury, 2003. "Joint venture instability and monitoring," Discussion Papers 04-09, Indian Statistical Institute, Delhi.
    5. Indrani Roy Chowdhury & Prabla Chowdhury, 2002. "International Joint Ventures: A Welfare Analysis," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 5(1), pages 51-60.
    6. Banerjee, Shantanu & Mukherjee, Arijit, 2010. "Joint venture instability in developing countries under entry," International Review of Economics & Finance, Elsevier, vol. 19(4), pages 603-614, October.
    7. Hamid Beladi & Sugata Marjit & Avik Chakrabarti, 2009. "Tariff Jumping and Joint Ventures," Southern Economic Journal, John Wiley & Sons, vol. 75(4), pages 1256-1269, April.
    8. Silipo, Damiano B., 2008. "Incentives and forms of cooperation in research and development," Research in Economics, Elsevier, vol. 62(2), pages 101-119, June.
    9. Hamid Beladi & Sugata Marjit & Avik Chakrabarti, 2006. "Tariff Jumping and Joint Ventures," Working Papers 0002, College of Business, University of Texas at San Antonio.
    10. Broll, Udo & Marjit, Sugata, 1992. "On generating efficiency through public-private joint ventures," Discussion Papers, Series II 183, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    11. Ray Chaudhuri, Prabal, 1995. "Technological asymmetry and joint product development," International Journal of Industrial Organization, Elsevier, vol. 13(1), pages 23-39, March.
    12. Heimeriks, K. & Duysters, G.M. & Vanhaverbeke, W.P.M., 2004. "The evolution of alliance capabilities," Working Papers 04.20, Eindhoven Center for Innovation Studies.
    13. Morasch, Karl, 2000. "Strategic alliances as Stackelberg cartels - concept and equilibrium alliance structure," International Journal of Industrial Organization, Elsevier, vol. 18(2), pages 257-282, February.
    14. Ding, Xiu-Hao & Huang, Rui-Hua, 2010. "Effects of knowledge spillover on inter-organizational resource sharing decision in collaborative knowledge creation," European Journal of Operational Research, Elsevier, vol. 201(3), pages 949-959, March.
    15. Sinha, Uday Bhanu, 2008. "International joint venture: Buy-out and subsidiary," Journal of Economic Behavior & Organization, Elsevier, vol. 65(3-4), pages 734-756, March.
    16. Mattoo, Aaditya & Olarreaga, Marcelo & Saggi, Kamal, 2004. "Mode of foreign entry, technology transfer, and FDI policy," Journal of Development Economics, Elsevier, vol. 75(1), pages 95-111, October.
    17. BeomJu Park & Chang-Yang Lee, 2023. "Does R&D cooperation with competitors cause firms to invest in R&D more intensively? evidence from Korean manufacturing firms," The Journal of Technology Transfer, Springer, vol. 48(3), pages 1045-1076, June.
    18. Xiu-Hao Ding & Rui-Hua Huang & Dong-Lin Liu, 2012. "Resource allocation for open and hidden learning in learning alliances," Asia Pacific Journal of Management, Springer, vol. 29(1), pages 103-127, March.
    19. Aaditya Mattoo & Marcelo Olarreaga & Kamal Saggi, 2023. "Mode of foreign entry, technology transfer, and FDI policy," World Scientific Book Chapters, in: Kamal Saggi (ed.), Technology Transfer, Foreign Direct Investment, and the Protection of Intellectual Property in the Global Economy, chapter 25, pages 567-583, World Scientific Publishing Co. Pte. Ltd..
    20. Sinha, Uday Bhanu, 2001. "Imitative innovation and international joint ventures: a dynamic analysis," International Journal of Industrial Organization, Elsevier, vol. 19(10), pages 1527-1562, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:grdene:v:9:y:2000:i:6:d:10.1023_a:1008726920290. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.