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Effective Boundary Spanners in IJVs Experiencing Performance Downturn

In: Global Enterprise Management

Author

Listed:
  • Paul Gooderham
  • Michael Zhang
  • Atle Jordahl

Abstract

International joint ventures (IJVs) are defined by Chenet al. (2009, p. 1133) as “legally independent entities formed by two or more parent firms from different countries that share equity investments and consequent returns.” The basis of most IJV structures involves a multinational enterprise (MNE) and a local partner pooling their respective competitive advantages. Although IJVs are widespread, their success rate has been estimated to be no more than about 50 percent (Bamford et al., 2004) and there is evidence of particular difficulties for IJVs involving Chinese partners (Child & Yan, 2003). In short, because IJVs are prone to interpartner conflict (Hambrick et al., 2001), they are fundamentally unstable, with only a minority surviving beyond a few years (Kogut, 1989; Park & Ungson, 1997).

Suggested Citation

  • Paul Gooderham & Michael Zhang & Atle Jordahl, 2015. "Effective Boundary Spanners in IJVs Experiencing Performance Downturn," Palgrave Macmillan Books, in: Angelo A. Camillo (ed.), Global Enterprise Management, chapter 0, pages 91-106, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-137-51070-9_6
    DOI: 10.1057/9781137510709_6
    as

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