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The Role of Key Stakeholders in the International Joint Venture Negotiations: Case Studies from Eastern Europe

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  • Keith D Brouthers

    (University of East London)

  • Gary J Bamossy

    (Vrije University)

Abstract

Recent literature has suggested that a key stakeholder may be able to shift the balance of bargaining power during a joint venture negotiation, and thus change the outcome of the process. This paper explores the role of central and eastern European transitional governments as key stakeholders, and how they influence international joint venture negotiations. This role is described and analyzed by examining eight dyads of western European and central/eastern European enterprises that have recently negotiated agreements. The findings suggest that transitional governments as key stakeholders intervene at different stages of the negotiation process, have both direct and indirect influences on the process, and that they can change the balance of power in the negotiations, sometimes to the detriment of their own state-owned enterprise.© 1997 JIBS. Journal of International Business Studies (1997) 28, 285–308

Suggested Citation

  • Keith D Brouthers & Gary J Bamossy, 1997. "The Role of Key Stakeholders in the International Joint Venture Negotiations: Case Studies from Eastern Europe," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(2), pages 285-308, June.
  • Handle: RePEc:pal:jintbs:v:28:y:1997:i:2:p:285-308
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    Citations

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    Cited by:

    1. Kyj, Myroslaw J. & Kyj, Larissa, 2009. "An institution-stakeholder framework for examining business relationship dynamics in a transforming Eastern Europe," Journal of World Business, Elsevier, vol. 44(3), pages 300-310, July.
    2. Mu, Qing & Lee, Keun, 2005. "Knowledge diffusion, market segmentation and technological catch-up: The case of the telecommunication industry in China," Research Policy, Elsevier, vol. 34(6), pages 759-783, August.
    3. Mahoney, Joseph & Asher, Cheryl Carleton & Mahoney, James, 2004. "Towards a Property Rights Foundation for a Stakeholder Theory of the Firm," Working Papers 04-0116, University of Illinois at Urbana-Champaign, College of Business.
    4. Emita W. Astami & Greg Tower & Rusmin Rusmin & John Neilson, 2010. "The effect of privatisation on performance of state-owned-enterprises in Indonesia," Asian Review of Accounting, Emerald Group Publishing, vol. 18(1), pages 5-19, May.
    5. Driffield, Nigel & Mickiewicz, Tomasz & Temouri, Yama, 2016. "Ownership control of foreign affiliates: A property rights theory perspective," Journal of World Business, Elsevier, vol. 51(6), pages 965-976.
    6. Mahoney, Joseph T., 2012. "Towards a Stakeholder Theory of Strategic Management," Working Papers 12-0100, University of Illinois at Urbana-Champaign, College of Business.
    7. Yan, Aimin & Gray, Barbara, 2001. "Negotiating control and achieving performance in international joint ventures: A conceptual model," Journal of International Management, Elsevier, vol. 7(4), pages 295-315.
    8. repec:spr:manint:v:54:y:2014:i:5:d:10.1007_s11575-014-0218-3 is not listed on IDEAS
    9. Karhunen, Päivi & Löfgren, Joan & Kosonen, Riitta, 2008. "Revisiting the relationship between ownership and control in international business operations: Lessons from transition economies," Journal of International Management, Elsevier, vol. 14(1), pages 78-88, March.
    10. Smarzynska, Beata K., 2000. "Technological leadership and foreign investors'choice of entry mode," Policy Research Working Paper Series 2314, The World Bank.
    11. Mina Glambosky & Kim Gleason & Joan Wiggenhorn, 2011. "Joint ventures between US MNCs and foreign governments," International Journal of Managerial Finance, Emerald Group Publishing, vol. 7(3), pages 238-258, June.
    12. Chapman, Malcolm & Gajewska-De Mattos, Hanna & Clegg, Jeremy & Jennings Buckley, Peter, 2008. "Close neighbours and distant friends--perceptions of cultural distance," International Business Review, Elsevier, vol. 17(3), pages 217-234, June.
    13. Gil, Adrian & Nakos, George & Brouthers, Lance Eliot & Brouthers, Keith D., 2006. "Country-specific strategy and new venture formation in Central and East Europe," International Business Review, Elsevier, vol. 15(1), pages 1-13, February.
    14. Luo, Yadong & Shenkar, Oded, 2002. "An empirical inquiry of negotiation effects in cross-cultural joint ventures," Journal of International Management, Elsevier, vol. 8(2), pages 141-162.
    15. Wrona, Thomas & Trąpczyński, Piotr, 2012. "Re-explaining international entry modes – Interaction and moderating effects on entry modes of pharmaceutical companies into transition economies," European Management Journal, Elsevier, vol. 30(4), pages 295-315.

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