IDEAS home Printed from
   My bibliography  Save this article

Competitive consequences of interfirm collaboration: How joint ventures shape industry profitability


  • Tony W Tong

    (Leeds School of Business, University of Colorado, Boulder, CO, USA)

  • Jeffrey J Reuer

    (Krannert School of Management, Purdue University, West Lafayette, IN, USA)


Recent international business research on international joint ventures focuses on how firms can use such ventures for knowledge access and learning to enhance their competitiveness, thereby increasing competition in the industry. By contrast, research in industrial organization economics has observed that firms can also use joint ventures in various ways to attenuate competition. In this paper, we join these two streams of research to investigate the conditions under which joint ventures reduce or enhance competition by empirically testing the effects of different types of joint ventures on industry profitability. Our results suggest that joint ventures can be pro-competitive or anti-competitive, depending on whether or not they are formed between competing firms, represent foreign market entry, and operate in relatively concentrated industries. Our paper shows the importance of adopting a contingent approach to evaluating the competitive implications of joint ventures, and it also points to the value of reinvigorating international business research on the competitive context and consequences of interfirm collaboration.

Suggested Citation

  • Tony W Tong & Jeffrey J Reuer, 2010. "Competitive consequences of interfirm collaboration: How joint ventures shape industry profitability," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(6), pages 1056-1073, August.
  • Handle: RePEc:pal:jintbs:v:41:y:2010:i:6:p:1056-1073

    Download full text from publisher

    File URL:
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.

    File URL:
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Mantecon, Tomas & Liu, Ian & Gao, Fei, 2012. "Empirical evidence of the value of monitoring in joint ownership," Journal of Banking & Finance, Elsevier, vol. 36(4), pages 1045-1056.
    2. Thomas Bolli & Martin Woerter, 2013. "Competition and R&D cooperation with universities and competitors," The Journal of Technology Transfer, Springer, vol. 38(6), pages 768-787, December.
    3. Georgieva, Dobrina & Jandik, Tomas & Lee, Wayne Y., 2012. "The impact of laws, regulations, and culture on cross-border joint ventures," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 22(4), pages 774-795.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jintbs:v:41:y:2010:i:6:p:1056-1073. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.