The contingent effect of state participation on the dissolution of international joint ventures: A resource dependence approach
We adopt a resource dependence approach to explain the effect of state participation on the dissolution of international joint ventures (IJVs). While resource dependence theory (RDT) has been used to explain the formation of lJVs, we propose an extension of the theory to explain their dissolution. W...
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Veröffentlicht in: | Journal of international business studies 2016-05, Vol.47 (4), p.408-426 |
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creator | Mohr, Alexander Wang, Chengang Fastoso, Fernando |
description | We adopt a resource dependence approach to explain the effect of state participation on the dissolution of international joint ventures (IJVs). While resource dependence theory (RDT) has been used to explain the formation of lJVs, we propose an extension of the theory to explain their dissolution. We do so by highlighting the match between foreign firms' resource needs (resource hierarchy) and the resource provision roles of state-controlled vs private local partners (resource profiles). We further argue that the effect of state participation on the dissolution of IJVs is moderated by foreign firms' host country experience and IJV age. We test our hypotheses by using data on 623 IJVs in China. Our results show that state participation reduces the risk of IJV dissolution and that the strength of this effect differs depending on the type of state-controlled actor that is involved in an IJV. We also find that host country experience and IJV age moderate the effect of state participation on IJV dissolution. These findings enhance our understanding of IJV dissolution and contribute to the development of RDT. |
doi_str_mv | 10.1057/jibs.2016.14 |
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While resource dependence theory (RDT) has been used to explain the formation of lJVs, we propose an extension of the theory to explain their dissolution. We do so by highlighting the match between foreign firms' resource needs (resource hierarchy) and the resource provision roles of state-controlled vs private local partners (resource profiles). We further argue that the effect of state participation on the dissolution of IJVs is moderated by foreign firms' host country experience and IJV age. We test our hypotheses by using data on 623 IJVs in China. Our results show that state participation reduces the risk of IJV dissolution and that the strength of this effect differs depending on the type of state-controlled actor that is involved in an IJV. We also find that host country experience and IJV age moderate the effect of state participation on IJV dissolution. 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subjects | Access to information Alliances Business and Management Business entities Business Strategy/Leadership Commercial regulation Economic regulation Economic resources Emerging markets Empirical evidence Government agencies Host country Hypotheses International Business Joint ventures Management Natural resources Organization |
title | The contingent effect of state participation on the dissolution of international joint ventures: A resource dependence approach |
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