Abstract
In this paper we test whether national cross cultural differences between joint venture (JV) parents affect JV longevity by comparing that of two categories of JVs placed in the same environment, those between two or more Japanese parents on one hand, and those between Japanese and American parents, on the other. Carefully controlling for other factors that may affect JV longevity, we find that the longevity of Japanese-American JVs is lower than that of Japanese-Japanese JVs. Such effects, however, appear only for dissolutions that result from the sale of the venture to one of the partners, not for those due to liquidation or sale to a third party.
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*Jean-françois Hennart is Professor of International Management at Tilburg University. His main research focus is on the transaction cost theory of international business institutions. He is the author of A Theory of Multinational Enterprise (University of Michigan Press, 1982) and of many theoretical and empirical articles on transaction cost theory and modes of market entry and exit.
**Ming Zeng is Assistant Professor of Asian Business at INSEAD. His research focuses on the dynamics of partner interactions in strategic alliances. He has also done research on foreign direct investment, joint ventures, e-commerce, and emerging Chinese companies.
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Hennart, Jf., Zeng, M. Cross-Cultural Differences and Joint Venture Longevity. J Int Bus Stud 33, 699–716 (2002). https://doi.org/10.1057/palgrave.jibs.8491040
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DOI: https://doi.org/10.1057/palgrave.jibs.8491040