The structure--performance relationship in international joint ventures: a comparative analysis

Merchant, Hemant
February 2005
Journal of World Business;Feb2005, Vol. 40 Issue 1, p41
Academic Journal
In a recent study published in this Journal [Sim, A., & Ali, Y. (1998). Performance of international joint ventures from developing and developed countries: An empirical study in a developing country context. Journal of World Business, 33(4): 357- 376.] compared the attributes and performance of joint ventures (Pis) between firms from developed versus developing countries. This study extends Sim and Ali's (1998) work by circumventing its key limitations. It compares the structure and capital market performance of two-party equity JVs across three sponsor categories: (i) partners from developed countries, (ii) partners from newly industrialized countries, and (iii) partners from developing countries. Based on a cross-sectional sample of more than 700 JYs involving American firms and non-American partners, this study finds that the structure of JVs varies significantly across-sponsor categories. These differences reveal themselves in terms of American firms' differential market performance. Moreover, some TV characteristics consistently influence firms' shareholder value whereas the impact of other characteristics depends upon a particular sponsor category.


Related Articles

  • Business Alliances and the Strategy of the Japanese Firm. Gerlach, Michael // California Management Review;Fall1987, Vol. 30 Issue 1, p126 

    With the transformation of global capital markets, it has become essential for American managers to consider capital market relationships as a part of their overall corporate strategies. This article explores these strategies from the point of view of America's leading industrial competitor,...

  • Legal Ramifications of Strategic Alliances. Mohr, Jakki J.; Gundlach, Gregory T.; Spekman, Robert // Marketing Management;Fall94, Vol. 3 Issue 2, p38 

    Corporate collaboration to compete successfully in complex markets is a well-established marketing trend. But the legal environment surrounding collaborative arrangements baffles many managers because of new laws easing prior antitrust restrictions and differences in the way enforcement agencies...

  • USAID Parcels Out Global Water Work.  // ENR: Engineering News-Record;10/18/2004, Vol. 253 Issue 15, p18 

    The article reports about the U.S. Agency for International Development's decision to award $2-billion, five-year indefinite quantity contract to five teams of contractors. The prime contractors are Tetra Tech, Pasadena, California, in a joint venture with International Resources Group,...

  • Strategic transactions. Triplett, Tim // Marketing News;6/20/94, Vol. 28 Issue 13, p15 

    The article reports on the study which found that strategic transactions in the direct marketing industry, including mergers, acquisitions, and joint ventures, surged to 466 in the year 1993 in the U.S. The tremendous surge in public offerings, mergers and acquisitions, and joint ventures in...

  • First Industrial seeking deals. Gallun, Alby // Crain's Chicago Business;4/3/2006, Vol. 29 Issue 14, p16 

    The article reports that after a record-breaking year for acquisitions in 2005, First Industrial Realty Trust Inc. aims to keep the momentum going with a $900 million joint venture with a unit of UBS A.G. The Chicago, Illinois-based real estate investment trust, which manages about 100 million...

  • AFC Scraps New Concepts.  // Restaurant Business;7/15/2003, Vol. 102 Issue 12, p8 

    AFC Enterprises Inc. has closed its Tib's Grill and Cajun Kitchen ventures to cut corporate expenses, chief executive Frank Belatti has told analysts. Tib's Grill had a casual-dining segment, a new arena for AFG, which operates and franchises for restaurants like Popeyes, Church's, and other...

  • IP Theft Stokes Cross-border Tensions. MacFadyen, Ken // Mergers & Acquisitions: The Dealermaker's Journal;Jan2008, Vol. 43 Issue 1, p54 

    The article reports on U.S. businesses that are seeking cross-border deals and joint ventures. In November 2007, General Motors announced a joint venture with Shanghai Automotive Industry Corp. called Shanghai OnStar Telematics Co. The deal will bring GM's OnStar technology to the Chinese market...

  • SUPPLIER NEWS.  // Wood & Wood Products;Sep2005, Vol. 110 Issue 10, p22 

    The article offers news briefs related to suppliers and business enterprises in the U.S. Cattinair U.S. and Burkie North America Inc. has decided to form a joint venture. Fort Myers, Florida-based has added a new rebuild department. The company will offer rebuild services including complete...

  • Coalition Strategies: A Framework for Joint Ventures. Harrigan, Kathryn Rudie // Academy of Management Proceedings (00650668);1985, p16 

    This paper presents a framework to explain why firms might embrace joint ventures (or other cooperative strategies). Using a two-player analysis, it suggests whether and how parents might enter such arrangements as well as why they will terminate joint ventures.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics