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Joint venture instability: a life cycle approach

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  • Roy Chowdhury, Prabal
  • Roy Chowdhury, Indrani

Abstract

Joint ventures represent one of the most fascinating developments in international business. In the last few decades, the rate of joint venture formation has accelerated dramatically. Nowadays joint ventures are much more widespread and occur in industries like telecommunications, biotechnology etc. At the same time, however, it must be noted that joint ventures are very unstable. In this paper we survey the phenomenon of joint venture instability. We draw on the relative recent theoretical literature on joint venture instability to provide a unified explanation of joint venture life-cycles, formation, as well as breakdown. Further, we do this for both research oriented, as well as production joint ventures.

Suggested Citation

  • Roy Chowdhury, Prabal & Roy Chowdhury, Indrani, 2001. "Joint venture instability: a life cycle approach," MPRA Paper 1556, University Library of Munich, Germany, revised Jan 2007.
    • Handle: RePEc:pra:mprapa:1556
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    References listed on IDEAS

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    1. Tarun Kabiraj & Ching Chyi Lee & Sugata Marjit, 2005. "Cultural Compatibility and Joint Venture Instability: A Theoretical Analysis," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 40(2), pages 209-220, December.
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    13. Prabal Roy Chowdhury, 1997. "Joint Product Development Between Domestic Firms: Some Policy Issues," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 32(2), pages 199-215, July.
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    18. Bardhan, Pranab K, 1982. "Imports, Domestic Production, and Transnational Vertical Integration: A Theoretical Note," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 1020-1034, October.
    19. Roy Chowdhury, Indrani & Roy Chowdhury, Prabal, 2001. "A theory of joint venture life-cycles," International Journal of Industrial Organization, Elsevier, vol. 19(3-4), pages 319-343, March.
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    Cited by:

    1. Kabiraj, Tarun & Roy Chowdhury, Prabal, 2008. "Adoption of new technology and joint venture instability," Research in International Business and Finance, Elsevier, vol. 22(2), pages 108-123, June.

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    More about this item

    Keywords

    Joint ventures; formation; breakdown; synergy; moral hazard; learning;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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