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Joint ventures vs. Non‐joint ventures: An empirical investigation
Author(s) -
Kent David H.
Publication year - 1991
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250120505
Subject(s) - joint (building) , business , industrial organization , empirical research , payment , new ventures , petroleum industry , finance , entrepreneurship , engineering , architectural engineering , philosophy , epistemology , environmental engineering
Abstract This paper describes a longitudinal empirical study comparing joint ventures and non‐joint ventures in the petroleum industry as they compete for oil and gas leases. Results indicate that, while enjoying a significant advantage in market power, joint ventures do not perform any better than non‐joint ventures at identifying potentially productive leases. Because of the higher payments made for these leases, the overall performance of joint ventures is significantly lower than that of non‐joint ventures.