Joint venture evolution: Extending the real options approach

Managerial and Decision Economics

Volumn 29, Issue 4, 2008, Pages 317-336

  Li, Jing ^a   Dhanaraj, Charles ^b   Shockley, Richard L ^b  

^a SIMON FRASER UNIVERSITY   (Canada)

^b INDIANA UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 46949108166     PISSN: 01436570     EISSN: 10991468     Source Type: Journal    
DOI: 10.1002/mde.1407     Document Type: Article

References (50)

1. Anand BN, Khanna T. 2000. Do firms learn to create value? The case of alliances. Strategic Management Journal 21: 295-315.
2. Binmore K, Rubinstein A, Wolinsky A. 1986. The Nash bargaining solution in economic modeling. Rand Journal of Economics 17(2): 176-188.
3. Bowman EH, Hurry D. 1993. Strategy through the options lens: an integrated view of resource investments and the incremental choice process. Academy of Management Review 18(4): 760-782.
4. Chen R-R, Chung S-I, Yang TT. 2002. Option pricing in a multi-asset, complete market economy. Journal of Financial and Quantitative Analysis 37(4): 649-667.
5. Chi T. 2000. Option to acquire or divest a joint venture. Strategic Management Journal 21(6): 665-687.
6. Chi T, McGuire DJ. 1996. Collaborative ventures and value of learning: integrating the transaction cost and strategic option perspectives on the choice of market entry modes. Journal of International Business Studies 27(2): 285-307.
7. Cohen WM, Levinthal DA. 1990. Absorptive capacity: a new perspective on learning and innovation. Administrative Science Quarterly 35(1): 128-152.
8. Cox JC, Ross SA, Rubinstein M. 1979. Option pricing: a simplified approach. Journal of Financial Economics 7(3): 229-263.
9. Cyert RM, March JG. 1982. A Behavioral Theory of the Firm (2nd edn). Black well: Cambridge, MA.
10. Dhanaraj C, Beamish P, Celley N. 2004a. Eli Lilly in India: Rethinking Joint Venture Strategy. Teaching Case published by Ivey Management Services. University of Western Ontario, London, Canada.
11. Dhanaraj C, Lyles M, Steensma H, Tihanyi L. 2004b. Managing tacit and explicit knowledge transfer in IJVs: the role of relational embeddedness and the impact on performance. Journal of International Business Studies 35(6): 428-443.
12. Dixit A, Skeath S. 1999. Games of Strategy. Norton: New York.
13. Doz Y. 1996. The evolution of cooperation in strategic alliances: initial conditions or learning processes? Strategic Management Journal 17(7): 55-83.
14. Dussauge P, Garrette B, Mitchell W. 2000. Learning from competing partners: outcomes and durations of scale and link alliances in Europe, North America and Asia. Strategic Management Journal 21: 99-126.
15. Fiol CM, Lyles MA. 1985. Organizational learning. Academy of Management Review 10(4): 803-813.
16. Folta TB. 1998. Governance and uncertainty: the trade-off between administrative control and commitment. Strategic Management Journal 19(11): 1007-1028.
17. Folta TB, Miller KD. 2002. Real options in equity partnerships. Strategic Management Journal 23(1): 77-88.
18. Grenadier SR. 2002. Option exercise games: an application to the equilibrium investment strategies of firms. Review of Financial Studies 15(3): 691-721.
19. Hamel G. 1991. Competition for competence and inter-partner learning within international strategic alliances. Strategic Management Journal 12(4): 83-103.
20. Hennart J-F, Roehl T, Zietlow DS. 1999. 'Trojan horse' or 'workhorse'? The evolution of U.S.-Japanese joint ventures in the United States. Strategic Management Journal 20(1): 15-29.
21. Inkpen A. 1998. Learning and knowledge acquisition through international strategic alliances. Academy of Management Executives 12(4): 69-80.
22. Inkpen AC, Beamish PW. 1997. Knowledge, bargaining power and IJV stability. Academy of Management Review 22(1): 177-202.
23. Inkpen AC, Dinur A. 1998. Knowledge management processes and international joint ventures. Organization Science 9(4): 454-468.
24. Khanna T, Gulati R, Nohria N. 1998. The dynamics of learning alliances: competition, cooperation, and relative scope. Strategic Management Journal 19(3): 193-210.
25. Kogut B. 1991. Ventures and the option to expand and acquire. Management Science 37(1): 19-33.
26. Kulatilaka N, Perotti EC. 1998. Strategic growth options. Management Science 44(8): 1021-1031.
27. Lane PJ, Salk JE, Lyles MA. 2001. Absorptive capacity, learning, and performance in international joint ventures. Strategic Management Journal 22(12): 1139-1161.
28. Li J. 2007. Real options and international strategy: a critical review. Advances in Strategic Management 24: 67-101.
29. McDonald RL. 2006. Derivatives Markets. Addison-Wesley: Boston.
30. McGrath RG, Ferrier WJ, Mendelow AL. 2004. Real options as engines of choice and heterogeneity. Academy of Management Review 29(1): 86-101.
31. Mowery D, Oxley J, Silverman B. 1996. Strategic alliance and interfirm knowledge transfer. Strategic Management Journal 17: 77-91.
32. Nanda A, Williamson PJ. 1995. Use joint ventures to ease the pain of restructuring. Harvard Business Review 73(6): 119-128.
33. Nelson RR, Winter SG. 1982. An Evolutionary Theory of Economic Change. Harvard University Press: Cambridge, MA.
34. Park SH, Russo MV. 1996. When competition eclipses cooperation: an event history analysis of joint venture failure. Management Science 42(6): 875-890.
35. Powell WW, Koput K, Smith-Doerr L. 1996. Interorganizational collaboration and the locus of innovation: networks of learning in biotechnology. Administrative Science Quarterly 41: 116-145.
36. Reuer JJ. 2001. From hybrids to hierarchies: share-holder wealth effects of joint venture partner buyouts. Strategic Management Journal 22(1): 203-214.
37. Reuer JJ, Leiblein MJ. 2000. Downside risk implications of multinationality and international joint ventures. Academy of Management Journal 43(2): 203-214.
38. Reuer JJ, Tong TW. 2005. Real options in international joint ventures. Journal of Management 31(3): 403-423.
39. Reuer JJ, Zollo M, Singh H. 2002. Post-formation dynamics in strategic alliances. Strategic Management Journal 23(2): 135-151.
40. Ring PS, Van De Ven AH. 1994. Developmental processes of cooperative interorganizational relationships. Academy of Management Review 19(1): 90-118.
41. Roberts EB, Liu WK. 2001. Ally or acquire. MIT Sloan Management Review 43(1): 26-34.
42. St. John CH, Harrison JS. 1999. Manufacturing-based relatedness, synergy, and coordination. Strategic Management Journal 20(2): 129-145.
43. Steensma HK, Lyles MA. 2000. Explaining IJV survival in a transitional economy through social exchange and knowledge-based perspectives. Strategic Management Journal 21(8): 831-851.
44. Tong TW, Reuer JJ, Peng MW. 2008. International joint venture and the value of growth options. Academy of Management Journal, forthcoming.
45. Tirole J. 1988. The Theory of Industrial Organization. MIT Press: Cambridge, MA.
46. Trigeorgis L. 1996. Real Options: Managerial Flexibility and Strategy in Resource Allocation. MIT Press: Cambridge, MA.
47. Tsang EWK. 2002. Acquiring knowledge by foreign partners from international joint ventures in a transitional economy: learning-by-doing and learning myopia. Strategic Management Journal 23(9): 835-854.
48. Winter SG. 1987. Knowledge and competence as strategic assets. In The Competitive Challenge, D. Teece (ed.). Ballinger: Cambridge, MA.
49. Yan A, Gray B. 1994. Bargaining power, management control, and performance in United States-China joint ventures: a comparative case study. Academy of Management Journal 37(6): 1478-1517.
50. Yan A, Zeng M. 1999. International joint venture instability: a critique of previous research, a reconceptualization, and directions for future research. Journal of International Business Studies 30(2): 397-414.