Abstract
Joint ventures generate information and lead to substantial information exchanges between the partner firms stemming from their interactions. Therefore, joint ventures are expected to have a feedback effect on their parent firms. We propose to test jointly the following hypotheses. First, there are two interaction scenarios between the joint venture partners: the parent firms become more alike in their competitive capabilities or their competitive capabilities become more dissimilar but complementary. Second, long-lasting joint ventures are those in which partner firms' competitive capabilities have become dissimilar but complementary. Using the partial least squares (PLS) technique and cross-sectional data on U.S.-Japan joint ventures in Japan we obtain supportive empirical evidence.
Original language | English (US) |
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Pages (from-to) | 521-541 |
Number of pages | 21 |
Journal | International Journal of Industrial Organization |
Volume | 14 |
Issue number | 4 |
DOIs | |
State | Published - Jun 1996 |
Keywords
- Dynamic behaviour
- Information exchange
- Joint venture