Quotation Mohr, Alexander, Wang, Chengang, Fastoso, Fernando. 2016. The contingent effect of state participation on the dissolution of international joint ventures: A resource dependence approach. Journal of International Business Studies 47 (4), 408-426.


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Abstract

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 has been used to explain the formation of IJVs, 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 versus 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 resource dependence theory.

Tags

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  • alliances and joint ventures
  • resource dependency
  • business/government interaction and relations
  • corporate political strategy
  • duration/survival analysis
  • emerging markets/countries/economies

Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of International Business Studies JIBS
Citation Index SSCI
Language English
Title The contingent effect of state participation on the dissolution of international joint ventures: A resource dependence approach
Volume 47
Number 4
Year 2016
Page from 408
Page to 426
Reviewed? Y
DOI http://dx.doi.org/10.1057/jibs.2016.14

Associations

People
Mohr, Alexander (Details)
External
Fastoso, Fernando (Universtiy of Kent, United Kingdom)
Wang, Chengang (Bradford University, United Kingdom)
Organization
Institute for International Business (Details)
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