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How much does ownership really matter? Equity and trust relations in joint venture relationships


  • Anoop Madhok

    ([1] Schulich School of Business, York University, Toronto, Canada [2] †Visiting Professor, Department of Public Administration and Organization Science, Vrije University, Amsterdam, Netherlands.)


In this paper, I reaffirm the role of trust in interfirm relations and make an appeal for more cross-disciplinary work to further our insights into the functioning of important phenomena of interest such as international joint ventures. I also pose a couple of fundamental questions: (1) Is ownership over-rated? That is, should we and our scholarship be so consumed with issues of ownership? (2) Is trust under-rated? In what way might we and our scholarship change if we assumed trust rather than opportunism? In what way might it change firms' attitudes and behavior towards their partnership relations?Journal of International Business Studies (2006) 37, 4–11. doi:10.1057/palgrave.jibs.8400182

Suggested Citation

  • Anoop Madhok, 2006. "How much does ownership really matter? Equity and trust relations in joint venture relationships," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(1), pages 4-11, January.
  • Handle: RePEc:pal:jintbs:v:37:y:2006:i:1:p:4-11

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    Cited by:

    1. Fregidou-Malama, Maria & Hyder, Akmal S., 2015. "Impact of culture on marketing of health services – Elekta in Brazil," International Business Review, Elsevier, vol. 24(3), pages 530-540.
    2. M. Lopez-Perez & Lazaro Rodriguez-Ariza, 2013. "Ownership and trust in the governance structures of Spanish-Moroccan SMEs constituted as international joint ventures," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 21(3), pages 609-624, September.
    3. Kwon, Yung-Chul, 2008. "Antecedents and consequences of international joint venture partnerships: A social exchange perspective," International Business Review, Elsevier, vol. 17(5), pages 559-573, October.
    4. repec:gam:jadmsc:v:7:y:2017:i:2:p:9-:d:97618 is not listed on IDEAS
    5. Miguel Rivera-Santos & Carlos Rufín, 2010. "Odd Couples: Understanding the Governance of Firm–NGO Alliances," Journal of Business Ethics, Springer, vol. 94(1), pages 55-70, July.
    6. Vivek, Shiri D. & Richey Jr., R. Glenn & Dalela, Vivek, 2009. "A longitudinal examination of partnership governance in offshoring: A moving target," Journal of World Business, Elsevier, vol. 44(1), pages 16-30, January.
    7. Costa e Silva, Susana & Bradley, Frank & Sousa, Carlos M.P., 2012. "Empirical test of the trust–performance link in an international alliances context," International Business Review, Elsevier, vol. 21(2), pages 293-306.
    8. Lin, Xiaohua & Wang, Cheng Lu, 2008. "Enforcement and performance: The role of ownership, legalism and trust in international joint ventures," Journal of World Business, Elsevier, vol. 43(3), pages 340-351, July.
    9. Larimo, Jorma & Le Nguyen, Huu & Ali, Tahir, 2016. "Performance measurement choices in international joint ventures: What factors drive them?," Journal of Business Research, Elsevier, vol. 69(2), pages 877-887.
    10. Wang, Cheng Lu & Shi, Yizheng & Barnes, Bradley R., 2015. "The role of satisfaction, trust and contractual obligation on long-term orientation," Journal of Business Research, Elsevier, vol. 68(3), pages 473-479.
    11. Petrou, Andreas, 2007. "Multinational banks from developing versus developed countries: Competing in the same arena?," Journal of International Management, Elsevier, vol. 13(3), pages 376-397, September.
    12. Liu, C.-L.E., 2012. "An investigation of relationship learning in cross-border buyer–supplier relationships: The role of trust," International Business Review, Elsevier, vol. 21(3), pages 311-327.
    13. Liu, Chia-Ling (Eunice) & Zhang, Yingying, 2014. "Learning process and capability formation in cross-border buyer–supplier relationships: A qualitative case study of Taiwanese technological firms," International Business Review, Elsevier, vol. 23(4), pages 718-730.
    14. Ng, Paul Wai-Kit & Lau, Chung-Ming & Nyaw, Mee-Kau, 2007. "The effect of trust on international joint venture performance in China," Journal of International Management, Elsevier, vol. 13(4), pages 430-448, December.
    15. repec:spr:manint:v:53:y:2013:i:2:d:10.1007_s11575-012-0145-0 is not listed on IDEAS
    16. Li, Julie Juan, 2008. "How to retain local senior managers in international joint ventures: The effects of alliance relationship characteristics," Journal of Business Research, Elsevier, vol. 61(9), pages 986-994, September.
    17. repec:spr:manint:v:58:y:2018:i:1:d:10.1007_s11575-017-0334-y is not listed on IDEAS
    18. Liu, Chia-Ling (Eunice) & Ghauri, Pervez N. & Sinkovics, Rudolf R., 2010. "Understanding the impact of relational capital and organizational learning on alliance outcomes," Journal of World Business, Elsevier, vol. 45(3), pages 237-249, July.
    19. 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.
    20. Zhang, Jing & Pezeshkan, Amir, 2016. "Host country network, industry experience, and international alliance formation: Evidence from the venture capital industry," Journal of World Business, Elsevier, vol. 51(2), pages 264-277.

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