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The Rationale for International Equity Joint Ventures

By: GLAISTER, Keith W.
Material type: materialTypeLabelArticlePublisher: Oxford : Elsevier, October 2004European Management Journal 22, 5, p. 493-507Abstract: This study examines the rationale for the formation of international equity joint ventures (IJVs)from the perspectives of the transactions cost and resource based theories. The study adopts a multimethod personal interview and self-administered questionnaire approach to examine the rationale for the decision to form an IJV in the parent firms. The study also examines the extent and methods of analysis when deciding to form a JV. Key Results. The findinds show that aspects of both the transaction cost and resource base views influence the decision to form a JV. In this respect the transaction cost and resource base perspectives on JV formation should be regarded as complementary views rather than substitute views
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This study examines the rationale for the formation of international equity joint ventures (IJVs)from the perspectives of the transactions cost and resource based theories. The study adopts a multimethod personal interview and self-administered questionnaire approach to examine the rationale for the decision to form an IJV in the parent firms. The study also examines the extent and methods of analysis when deciding to form a JV. Key Results. The findinds show that aspects of both the transaction cost and resource base views influence the decision to form a JV. In this respect the transaction cost and resource base perspectives on JV formation should be regarded as complementary views rather than substitute views

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