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Research notes and communications factors in the instability of international joint ventures: An event history analysis
Author(s) -
Blodgett Linda Longfellow
Publication year - 1992
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.4250130607
Subject(s) - joint venture , joint (building) , equity (law) , proxy (statistics) , business , foreign direct investment , economics , industrial organization , commerce , political science , macroeconomics , engineering , computer science , architectural engineering , machine learning , law
This study uses Event History methodology to examine factors that may contribute to the instability of joint ventures between U.S. multinationals and foreign companies. Using joint venture contract renegotiation as a proxy for instability, it finds statistically significant support for hypotheses that joint ventures are more unstable when partners start out with uneven shares of equity and when the contracts have been renegotiated before. Contract renegotiation is also more likely in relatively open economies than in countries that impose restrictions on direct investment.