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Managing the cooperative dilemma of joint ventures: the role of structural factors

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  • Zeng, Ming

Abstract

This paper first argues that joint venture partners face a "cooperative dilemma" in managing the inherent tension between cooperation and competition, and then, drawing from the game theory literature, explores various structural factors that improve partner cooperation. Empirical analysis shows that better protection of one's own contribution to joint ventures, similarity in partners' organizational cultures or management styles, and continuous reliance on future contribution from partners led to a higher degree of cooperation among partners, while the difficulties in evaluating partner's performance and the higher degree of asymmetry in partners' specialized investments in joint ventures led to a lower degree of cooperation.

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  • Zeng, Ming, 2003. "Managing the cooperative dilemma of joint ventures: the role of structural factors," Journal of International Management, Elsevier, vol. 9(2), pages 95-113.
    • Handle: RePEc:eee:intman:v:9:y:2003:i:2:p:95-113
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    2. Lui, Steven S. & Ngo, Hang-yue & Hon, Alice H.Y., 2006. "Coercive strategy in interfirm cooperation: Mediating roles of interpersonal and interorganizational trust," Journal of Business Research, Elsevier, vol. 59(4), pages 466-474, April.
    3. Dorn, Stefanie & Schweiger, Bastian & Albers, Sascha, 2016. "Levels, phases and themes of coopetition: A systematic literature review and research agenda," European Management Journal, Elsevier, vol. 34(5), pages 484-500.
    4. Steven E. Phelan & Richard J. Arend & Darryl A. Seale, 2005. "Using an Iterated Prisoner's Dilemma with Exit Option to Study Alliance Behavior: Results of a Tournament and Simulation," Computational and Mathematical Organization Theory, Springer, vol. 11(4), pages 339-356, December.
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    7. Jiang, Xu & Li, Yuan & Gao, Shanxing, 2008. "The stability of strategic alliances: Characteristics, factors and stages," Journal of International Management, Elsevier, vol. 14(2), pages 173-189, June.

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