Abstract
In spite of the increasing popularity of international joint ventures, managers express a high level of dissatisfaction with them. This paper argues that overemphasis on the outcome has resulted in a neglect of the social processes underlying the outcome. The paper elaborates upon the rationale for a cooperative approach towards interorganizational collaborative relationships based on trust, and discusses it in the context of joint ventures. This is then applied towards understanding multinational ownership preferences and tolerance for joint ventures. It is argued that trust-centered logic is largely consistent with approaches that emphasize the issue of ownership, and deepens and enriches the insights provided by the latter. A shift in focus from ownership to relational dynamics is encouraged.
Similar content being viewed by others
Author information
Authors and Affiliations
Additional information
*Anoop Madhok (Ph.D., McGill University) is an Assistant Professor of Management at the David Eccles School of Business, University of Utah, Salt Lake City, UT 84112. His primary research interests are global strategic management, transaction cost economics, international strategic alliances and management of interfirm collaborations.
Rights and permissions
About this article
Cite this article
Madhok, A. Revisiting Multinational firms' Tolerance for Joint Ventures: A Trust-Based approach. J Int Bus Stud 26, 117–137 (1995). https://doi.org/10.1057/palgrave.jibs.8490168
Received:
Revised:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1057/palgrave.jibs.8490168