Performance, Longevity and Evolution of Joint Venture: Investigation in the Lifecycle of the Venture Through the Case of an International Joint Venture in India

Joint ventures (JVs) and cooperative business alliances have been around for over a century, initially emerging from the need for shared risk and capital. Research on JVs has evolved from focusing on motivations for formation to examining their performance and termination phases. However, the dissolution and post-termination stages of international joint ventures remain relatively underexplored despite the rising trend of alliance terminations. This study addresses these gaps by analysing the evolution of JVs, including restructuring and dissolution, through a longitudinal case study of a successful business enterprise spanning four decades that has undergone the entire cycle. It finds that changes in partner composition and equity, influenced by external factors, are integral to a JV’s evolution. Additionally, trust and learning play key roles in control decisions, and terminations should be viewed as adaptations to market shifts rather than failures. The main drivers of termination often arise from changes during the JV process rather than initial formation conditions. Besides adding to the field of management education and research, the study is intended to provide practical insights for JV management as many of the JVs in developing nations, particularly South Asian countries, reach maturity.