Match-Making in International Joint Ventures in Emerging Economies: Aligning Asymmetric Financial Strength and Equity Stake - Aix-Marseille Université Access content directly
Journal Articles MIR: Management International Review Year : 2017

Match-Making in International Joint Ventures in Emerging Economies: Aligning Asymmetric Financial Strength and Equity Stake

Abstract

This paper attends to prior equivocal results concerning partner asymmetry and international joint venture (IJV) performance. More specifically, we examine how asymmetric financial strength between the partners influences IJV termination in emerging economies, and consider the asymmetry direction as well as the local partner’s equity stake as contingency factors. Our event history analysis of 119 IJVs formed in Brazil shows that asymmetric financial strength increases the likelihood of termination. However, notably, the findings reveal that higher local partner financial strength is less harmful to IJV performance than lower local partner financial strength. Moreover, under both conditions, IJV performance is better when the highest equity stake is attributed to the local partner.
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Dates and versions

hal-01423749 , version 1 (31-12-2016)

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Pierre-Xavier Meschi, Edson Luiz Riccio, Anne Norheim-Hansen. Match-Making in International Joint Ventures in Emerging Economies: Aligning Asymmetric Financial Strength and Equity Stake. MIR: Management International Review, 2017, ⟨10.1007/s11575-016-0285-8⟩. ⟨hal-01423749⟩
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