International joint venture partner selection: The role of the host-country legal environment

Journal of International Business Studies

Volumn 40, Issue 5, 2009, Pages 779-801

  Roy, Jean Paul ^a   Oliver, Christine ^b  

^a QUEEN S UNIVERSITY   (Canada)

^b YORK UNIVERSITY   (Canada)

Author keywords

Institutional theory; survey method; Inter organizational relationships; Legal environment; Partner selection; Partnering concerns

Indexed keywords

EID: 67650914241     PISSN: 00472506     EISSN: 14786990     Source Type: Journal    
DOI: 10.1057/jibs.2008.110     Document Type: Article

References (102)

1. Al-Khalifa, A. K., & Peterson, S. E. 1999. The partner selection process in international joint ventures. European Journal of Marketing, 33(11/12): 1064-1081.
2. Anderson, E., & Gatignon, H. 1986. Models of foreign entry: A transaction cost analysis and propositions. Journal of International Business Studies, 17(3): 1-25.
3. Arino, A., Abramov, M., Skorobogatykh, I., Rykounina, I., & Vila, J. 1997. Partner selection and trust building in West European-Russian joint ventures. International Studies of Management and Organization, 27(1): 19-37.
4. Armstrong, J. S., & Overton, T. S. 1977. Estimating nonresponse bias in mail surveys. Journal of Marketing Research, 14(3): 396-402.
5. Aulakh, P. S., Kotabe, M., & Sahay, A. 1996. Trust and performance in cross-border marketing partnerships: A behavioral approach. Journal of International Business Studies, 27(5): 1005-1032.
6. Barden, J. Q., Steensma, H. K., & Lyles, M. A. 2005. The influence of parent control structure on parent conflict in Vietnamese international joint ventures: An organizational justice-based contingency approach. Journal of International Business Studies, 36(2): 156-174.
7. Baron, R. M., & Kenny, D. A. 1986. The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6): 1173-1182.
8. Baum, J. A. C., & Oliver, C. 1996. Toward an institutional ecology of organizational founding. Academy of Management Journal, 39(5): 1378-1427.
9. Beamish, P. W. 1987. Joint ventures in LDCs: Partner selection and performance. Management International Review, 27(1): 23-37.
10. Beamish, P. W., & Banks, J. C. 1987. Equity joint ventures and the theory of the multinational enterprise. Journal of International Business Studies, 18(2): 1-16.
11. Becker, G. S. 1968. Crime and punishment: An economic approach. Journal of Political Economy, 76(2): 169-217.
12. Besanko, D., Dranove, D., & Shanley, M. 1996. Economics of strategy. New York: Wiley.
13. Björkman, I., Fey, C. F., & Park, H. J. 2007. Institutional theory and MNC subsidiary HRM practices: Evidence from a three-country study. Journal of International Business Studies, 38(3): 430-446.
14. Blodgett, L. L. 1991. Partner contributions as predictors of equity share in international joint ventures. Journal of International Business Studies, 22(1): 63-78.
15. Boisot, M., & Child, J. 1988. The iron law of fiefs: Bureaucratic failure and the problem of governance in the Chinese economic reforms. Administrative Science Quarterly, 33(4): 507-527.
16. Brass, D. J., Butterfield, K. D., & Skaggs, B. C. 1998. Relationships and unethical behavior: A social network perspective. Academy of Management Review, 23(1): 14-31.
17. Brouthers, K. D. 2002. Institutional, cultural and transaction cost influences on entry mode choice and performance. Journal of International Business Studies, 33(2): 203-222.
18. Brouthers, K. D., & Brouthers, L. E. 2001. Explaining the national cultural distance paradox. Journal of International Business Studies, 32(1): 177-189.
19. Brouthers, K. D., Brouthers, L. E., & Nakos, G. 1998. Entering central and eastern Europe: Risks and cultural barriers. Thunderbird International Business Review, 40(5): 485-504.
20. Buckley, P. J., Glaister, K. W., & Husan, R. 2002. International joint ventures: Partnering skills and cross-cultural issues. Long Range Planning, 35(2): 113-134.
21. Campbell, D. T. 1955. The informant in quantitative research. American Journal of Sociology, 60(4): 339-342.
22. Child, J., & Faulkner, D. 1998. Strategies of cooperation: Managing alliances, networks, and joint ventures. New York: Oxford University Press.
23. Contractor, F. J., & Kundu, S. K. 1998. Modal choice in a world of alliances: Analyzing organizational forms in the international hotel sector. Journal of International Business Studies, 29(2): 325-357.
24. Dacin, M. T., Hitt, M. A., & Levitas, E. 1997. Selecting partners for successful international alliances: Examination of US and Korean firms. Journal of World Business, 32(1): 3-16.
25. Dacin, M. T., Oliver, C., & Roy, J.-P. 2007. The legitimacy of strategic alliances: An institutional perspective. Strategic Management Journal, 28(2): 169-187.
26. Delios, A., & Henisz, W. J. 2000. Japanese firms' investment strategies in emerging economies. Academy of Management Journal, 43(3): 305-323.
27. Delios, A., & Henisz, W. J. 2003. Political hazards, experience, and sequential entry strategies: The international expansion of Japanese firms, 1980-1998. Strategic Management Journal, 24(11): 1153-1164.
28. Dhanaraj, C., Lyles, M. A., Steensma, H. K., & Tihanyi, L. 2004. Managing tacit and explicit knowledge transfer in IJVs: The role of relational embeddedness and the impact on performance. Journal of International Business Studies, 35(5): 428-442.
29. Dickson, P. H., & Weaver, K. M. 1997. Environmental determinants and individual-level moderators of alliance use. Academy of Management Journal, 40(2): 404-425.
30. Dillman, D. 1978. Mail and telephone surveys. New York: Wiley & Sons.
31. Doz, Y. L. 1996. The evolution of cooperation in strategic alliances: Initial conditions or learning processes? Strategic Management Journal, 17(special issue): 55-83.
32. Eisenhardt, K. M. 1989. Agency theory: An assessment and review. Academy of Management Review, 14(1): 57-74.
33. Emery, F., & Trist, E. 1965. The causal texture of organisational environments. Human Relations, 18(1): 21-32.
34. Epple, D., Argote, L., & Devadas, R. 1991. Organizational learning curves: A method for investigating intra-plant transfer of knowledge acquired through learning by doing. Organization Science, 2(1): 58-70.
35. Erramilli, M. K., Agarwal, S., & Dev, C. S. 2002. Choice between non-equity entry modes: An organizational capability perspective. Journal of International Business Studies, 33(2): 223-242.
36. Fischoff, B., & Beyth, R. 1975. I knew it would happen: Remembered probabilities of once-future things. Organizational Behaviour and Human Performance, 13(1): 1-16.
37. Fukuyama, F. 1995. Trust: The social virtues and the creation of prosperity. New York: Free Press.
38. Gaba, V., Pan, Y., & Ungson, G. R. 2002. Timing of entry in international market: An empirical study of US Fortune 500 firms in China. Journal of International Business Studies, 33(1): 39-55.
39. Galbraith, J. 1973. Designing complex organizations. Reading, MA: Addison-Wesley.
40. Garcia-Canal, E. 1996. Contractual form in domestic and international strategic alliances. Organization Studies, 17(5): 773-794.
41. Geringer, J. M. 1988. Joint venture partner selection: Strategies for developed countries. Westport, CT: Quorum Books.
42. Geringer, J. M. 1991. Strategic determinants of partner selection criteria in international joint ventures. Journal of International Business Studies, 22(1): 41-63.
43. Geringer, J. M., & Hebert, L. 1989. Control and performance of international joint ventures. Journal of International Business Studies, 20(2): 235-255.
44. Glaister, K. W. 1996. UK - Western European strategic alliances: Motives and selection criteria. Journal of Euromarketing, 5(4): 5-35.
45. Glaister, K. W., & Buckley, P. J. 1997. Task-related and partner-related selection criteria in UK international joint ventures. British Journal of Management, 8(3): 199-222.
46. Globerman, S., & Shapiro, D. M. 2003. Governance infrastructure and US foreign direct investment. Journal of International Business Studies, 34(1): 19-39.
47. Glynn, M. A., & Abzug, R. 2002. Institutionalizing identity: Symbolic isomorphism and organizational names. Academy of Management Journal, 45(1): 267-280.
48. Glynn, P., Kobrin, S. J., & Nairn, M. 1997. Globalization of corruption. In K. A. Elliott (Ed.), Corruption and the global economy: 7-28. Washington, DC: Institute for International Economics.
49. Golden, B. R. 1992. The past is the past - Or is it? The use of retrospective accounts as indicators of past strategy. Academy of Management Journal, 35(4): 848-860.
50. Greenwood, R., & Hinings, C. R. 1996. Understanding radical organizational change: Bringing together the old and the new institutionalism. Academy of Management Review, 21(4): 1022-1054.
51. Gulati, R. 1995. Social structure and alliance formation patterns: A longitudinal analysis. Administrative Science Quarterly, 40(4): 619-652.
52. Gulati, R., & Singh, H. 1998. The architecture of cooperation: Managing coordination costs and appropriation concerns in strategic alliances. Administrative Science Quarterly, 43(4): 781-814.
53. Habib, M., & Zurawicki, L. 2002. Corruption and foreign direct investment. Journal of International Business Studies, 33(2): 291-308.
54. Hagedoorn, J., & Narula, R. 1996. Choosing organizational modes of strategic technology partnering: International and sectoral differences. Journal of International Business Studies, 27(2): 265-284.
55. Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. 1998. Multivariate data analysis, (5th ed.). New York: Macmillan.
56. Harbison, J. R., & Pekar, P. 1998. Smart alliances. San Francisco: Jossey-Bass.
57. Hillman, A. J., & Wan, W. P. 2005. The determinants of MNE subsidiaries' political strategies: Evidence of institutional duality. Journal of International Business Studies, 36(3): 322-340.
58. Hitt, M. A., Ahlstrom, D., Dacin, M. T., Levitas, E., & Svobodina, L. 2004. The institutional effects on strategic alliance partner selection in transition economies: China vs Russia. Organization Science, 15(2): 173-185.
59. Huber, G. P., & Power, D. J. 1985. Retrospective reports of strategic-level managers: Guidelines for increasing their accuracy. Strategic Management Journal, 6(2): 171-180.
60. Husted, B. W. 1994. Honor among thieves: A transaction-cost interpretation of corruption in Third World countries. Business Ethics Quarterly, 4(1): 17-27.
61. Husted, B. W., & Allen, D. B. 2006. Corporate social responsibility in the multinational enterprise: Strategic and institutional approaches. Journal of International Business Studies, 37(6): 838-849.
62. John, G. 1984. An empirical investigation of some antecedents of opportunism in a marketing channel. Journal of Marketing Research, 21(3): 278-289.
63. Kaufmann, D., Kraay, A., & Mastruzzi, M. 2006. Governance matters V: Aggregate and individual governance indicators for 1996-2005, World Bank Policy Research Working Paper No. 4012, World Bank, Washington, DC.
64. Kumar, B. N. 1995. Partner-selection-criteria and success of technology transfer: A model based on learning theory applied to the case of Indo-German technical collaborations. Management International Review, 35(special issue): 65-79.
65. Li, S., & Filer, L. 2007. The effects of the governance environment on the choice of investment mode and the strategic implications. Journal of World Business, 42(1): 80-98.
66. Lu, J. W. 2002. Intra- and inter-organizational imitative behavior: Institutional influences on Japanese firms' entry mode choice. Journal of International Business Studies, 33(1): 19-37.
67. Luo, Y. 2002a. Stimulating exchange in international joint ventures: An attachment-based view. Journal of International Business Studies, 33(1): 169-181.
68. Luo, Y. 2002b. Partnering with foreign businesses: Perspectives from Chinese firms. Journal of Business Research, 55(6): 481-493.
69. Luo, Y. 2006. Political behavior, social responsibility, and perceived corruption: A structuration perspective. Journal of International Business Studies, 37(6): 747-766.
70. Luo, Y. 2007. Are joint venture partners more opportunistic in a more volatile environment? Strategic Management Journal, 28(1): 39-60.
71. Makino, S., Isobe, T., & Chan, C. M. 2004. Does country matter? Strategic Management Journal, 25(10): 1027-1043.
72. Meyer, J. W., & Rowan, B. 1977. Institutionalized organizations: Formal structure as myth and ceremony. American Journal of Sociology, 83(2): 340-363.
73. Meyer, K. E., & Peng, M. W. 2005. Probing theoretically into Central and Eastern Europe: Transactions, resources, and institutions. Journal of International Business Studies, 36(6): 600-621.
74. Nielsen, B. B. 2003. An empirical investigation of the drivers of international strategic alliance formation. European Management Journal, 21(3): 301-322.
75. Oliver, C. 1991. Strategic responses to institutional processes. Academy of Management Review, 16(1): 145-180.
76. Oliver, C. 1997. Sustainable competitive advantage: Combining institutional and resource-based views. Strategic Management Journal, 18(9): 697-713.
77. Oliver, C. 2000. Competitive advantage: Cause for optimism. Advances in Strategic Management, 17: 291-299.
78. Ostergard, R. 2000. The measurement of intellectual property rights protection. Journal of International Business Studies, 31(2): 349-360.
79. Pan, Y., Li, S., & Tse, D. K. 1999. The impact of order and mode of market entry on profitability and market share. Journal of International Business Studies, 30(1): 81-104.
80. Park, S. H., & Ungson, G. R. 1997. The effect of national culture, organizational complementarity, and economic motivation on joint venture dissolution. Academy of Management Journal, 40(2): 279-307.
81. Parkhe, A. 1993. Strategic alliance structuring: A game theoretic and transaction cost examination of interfirm cooperation. Academy of Management Journal, 36(4): 794-829.
82. Peerenboom, R. 2001. Seek truth from facts: An empirical study of enforcement of arbitral awards in the PRC. The American Journal of Comparative Law, 49(2): 249-327.
83. Peng, M. W. 2002. Towards an institution-based view of business strategy. Asia Pacific Journal of Management, 19(2/3): 251-267.
84. Peng, M. W. 2003. Institutional transitions and strategic choices. Academy of Management Review, 28(2): 275-296.
85. Peng, M. W., & Heath, P. S. 1996. The growth of the firm in planned economies in transition: Institutions, organizations, and strategic choice. Academy of Management Review, 21(2): 492-528.
86. Peng, M. W., & Luo, Y. 2000. Managerial ties and firm performance in a transition economy: The nature of a micro-macro link. Academy of Management Journal, 43(3): 486-501.
87. Pfeffer, J., & Salancik, G. R. 1978. The external control of organizations. New York: Harper & Row.
88. Podsakoff, P. M., & Organ, D. 1986. Self-reports in organizational research: Problems and prospects. Journal of Management, 12(4): 531-545.
89. Pondy, L. R. 1970. Toward a theory of internal resource allocation. In M. N. Zald (Ed.), Power in organizations: 270-311. Nashville, TN: Vanderbilt University Press.
90. Powell, W. W. 1996. Commentary on the nature of institutional embeddedness. Advances in Strategic Management, 13: 293-300.
91. Ratnayake, R. 1993. Factors affecting inter-industry variation of foreign ownership of manufacturing industry. Applied Economics, 25(5): 653-675.
92. Rodriguez, P., Uhlenbruck, K., & Eden, L. 2005. Government corruption and the entry strategies of multinationals. Academy of Management Review, 30(2): 383-396.
93. Rubin, J. Z., & Brown, B. R. 1975. The social psychology of bargaining and negotiation. New York: Academic Press.
94. Scholz, J. T. 1984. Cooperation, deterrence, and the ecology of regulatory enforcement. Law Society Review, 18(2): 179-224.
95. Scott, W. R. 2001. Institutions and organizations. Thousand Oaks, CA: Sage.
96. Shleifer, A., & Vishny, R. 1993. Corruption. Quarterly Journal of Economics, 108(3): 599-617.
97. Shrader, R. C., Oviatt, B. M., & McDougall, P. P. 2000. How new ventures exploit trade-offs among international risk factors: Lessons for the accelerated internationalization of the 21st century. Academy of Management Journal, 43(6): 1227-1247.
98. Tallman, S. B., & Shenkar, O. 1994. A managerial decision model of international cooperative venture formation. Journal of International Business Studies, 25(1): 91-113.
99. Tatoglu, E., & Glaister, K. W. 2000. Strategic motives and partner selection criteria in international joint ventures in Turkey: Perspectives of Western firms and Turkish firms. Journal of Global Marketing, 13(3): 53-92.
100. Tse, D. K., Pan, Y., & Au, K. 1997. How MNCs choose entry modes and form alliances: The China experience. Journal of International Business Studies, 28(4): 779-805.
101. Yiu, D., & Makino, S. 2002. The choice between joint venture and wholly owned subsidiary: An institutional perspective. Organization Science, 13(6): 667-683.
102. Zhao, J. H., Kim, S. H., & Du, J. 2003. The impact of corruption and transparency on foreign direct investment: An empirical analysis. Management International Review, 43(1): 41-62.