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The structure-performance relationship in international joint ventures: a comparative analysis

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  • Merchant, Hemant

Abstract

In a recent study published in this Journal [Sim, A., & Ali, Y. (1998). Performance of international joint ventures from developing and developed countries: An empirical study in a developing country context. Journal of World Business, 33(4): 357-376.] compared the attributes and performance of joint ventures (JVs) between firms from developed versus developing countries. This study extends Sim and Ali's (1998) work by circumventing its key limitations. It compares the structure and capital market performance of two-party equity JVs across three sponsor categories: (i) partners from developed countries, (ii) partners from newly industrialized countries, and (iii) partners from developing countries. Based on a cross-sectional sample of more than 700 JVs involving American firms and non-American partners, this study finds that the structure of JVs varies significantly across-sponsor categories. These differences reveal themselves in terms of American firms' differential market performance. Moreover, some JV characteristics consistently influence firms' shareholder value whereas the impact of other characteristics depends upon a particular sponsor category.

Suggested Citation

  • Merchant, Hemant, 2005. "The structure-performance relationship in international joint ventures: a comparative analysis," Journal of World Business, Elsevier, vol. 40(1), pages 41-56, February.
  • Handle: RePEc:eee:worbus:v:40:y:2005:i:1:p:41-56
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    1. repec:spr:manint:v:57:y:2017:i:5:d:10.1007_s11575-017-0314-2 is not listed on IDEAS
    2. Contractor, Farok J. & Woodley, James A., 2015. "How the alliance pie is split: Value appropriation by each partner in cross-border technology transfer alliances," Journal of World Business, Elsevier, vol. 50(3), pages 535-547.
    3. repec:spr:manint:v:49:y:2009:i:5:d:10.1007_s11575-009-0009-4 is not listed on IDEAS
    4. Chiao, Yu-Ching & Yu, Chwo-Ming Joseph & Peng, Ju-Tzu Ann, 2009. "Partner nationality, market-focus and IJV performance: A contingent approach," Journal of World Business, Elsevier, vol. 44(3), pages 238-249, July.
    5. Beamish, Paul W. & Lupton, Nathaniel C., 2016. "Cooperative strategies in international business and management: Reflections on the past 50 years and future directions," Journal of World Business, Elsevier, vol. 51(1), pages 163-175.
    6. Kaufmann, Jeffrey B. & O'Neill, Hugh M., 2007. "Do culturally distant partners choose different types of joint ventures?," Journal of World Business, Elsevier, vol. 42(4), pages 435-448, December.
    7. Bowe, Michael & Golesorkhi, Sougand & Yamin, Mo, 2014. "Explaining equity shares in international joint ventures: Combining the influence of asset characteristics, culture and institutional differences," Research in International Business and Finance, Elsevier, vol. 31(C), pages 212-233.
    8. Gleason, Kimberly C. & Wiggenhorn, Joan, 2007. "Born globals, the choice of globalization strategy, and the market's perception of performance," Journal of World Business, Elsevier, vol. 42(3), pages 322-335, September.

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