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Paul W Beamish - One of the best experts on this subject based on the ideXlab platform.
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multinational Joint Ventures in developing countries
2014Co-Authors: Paul W BeamishAbstract:This text examines how Joint Ventures work in practice with regard to developing countries and considers problems of partner selection, implementation and control, and the costs and benefits of such Ventures.
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managing Joint Ventures
Academy of Management Perspectives, 2009Co-Authors: Paul W Beamish, Nathaniel C LuptonAbstract:Executive Overview Joint Ventures aid firms in accessing new markets, knowledge, capabilities, and other resources. Yet they can be challenging to manage, largely because they are owned by two or more parent companies. These companies may have competing or incongruent goals, differences in management style, and in the case of international business, additional complexities associated with differing government policies and business practices. We examine research on Joint venture (JV) performance in order to identify prominent academic discussions established over the last 25 years. From this research, we draw implications from past research and areas for future research on successfully managing JVs, taking into account the decisions JV partners must make throughout the partnering process, from initial motivations through partner selection and negotiation of terms to implementation and ongoing management. Key implications include the necessity of honesty, trust, and commitment for the success of the JV, set...
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intended and unintended termination of international Joint Ventures
Strategic Management Journal, 2007Co-Authors: Shige Makino, Christine M Chan, Takehiko Isobe, Paul W BeamishAbstract:This study proposes that international Joint Ventures (IJVs) are terminated either when the initial purposes of the formation of the IJV have been achieved (intended termination), or when unanticipated contingencies that emerge in the external, internal, or inter-partner conditions after the establishment of the IJV impede the continuation of its operation (unintended termination). Our study examines the factors that affect intended and unintended termination and the longevity of IJVs. The findings show that approximately 90 percent of all IJV terminations are unintended and 10 percent intended, and that the frequency of intended termination and unintended termination varies noticeably depending on the initial purposes of formation. This suggests that the termination of IJVs is significantly contingent on their formation. The findings also show that the longevity of IJVs varies according to the initial purposes of formation, the initial conditions under which the IJV is formed, and the types of unanticipated contingencies that it encounters. The key theoretical issues and practical implications of the distinction between the intended and unintended termination of IJVs are also discussed. Copyright © 2007 John Wiley & Sons, Ltd.
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resource attributes and firm performance in international Joint Ventures
Journal of World Business, 2007Co-Authors: Azimah R Ainuddin, Paul W Beamish, John Hulland, Michael J RouseAbstract:Abstract Using the resource-based view of the firm, we examine how four key resource attributes affect performance. The relationship between resource attributes and performance is studied in the context of international Joint Ventures (IJVs), using data from 96 IJVs in Malaysia. Executives were asked to assess the extent to which four resources (product reputation, technical expertise, local business network and marketing skills) exhibited the following attributes: (1) value; (2) rarity; (3) imperfect imitability; (4) non-substitutability. For each resource, the relationships between these attribute ratings and performance were analyzed. We found that each of the four attributes had an influence on performance. Value, rarity, and non-substitutability were found to be significant drivers of performance for IJV assets. In contrast, value, rarity, and non-imitability were critical attributes for organizational capabilities.
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effect of equity ownership on the survival of international Joint Ventures
Strategic Management Journal, 2004Co-Authors: Charles Dhanaraj, Paul W BeamishAbstract:This note extends transaction cost analysis of international Joint Ventures (IJVs) to include explicitly the effect of equity. It challenges the common practice of treating all foreign investments with between 5 percent and 95 percent equity as IJVs. A fine-grained analysis of the role of foreign equity ownership on the survival of 12,984 overseas subsidiaries confirms a declining, nonlinear, and asymmetrical relationship between equity and mortality in overseas subsidiaries. While investments involving small ownership levels ( 80%) have mortality rates comparable to that of wholly owned subsidiaries. Implications for research, practice, and policy are discussed. Copyright © 2003 John Wiley & Sons, Ltd.
Marjorie A Lyles - One of the best experts on this subject based on the ideXlab platform.
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Knowledge acquisition from foreign parents in international Joint Ventures: an empirical examination in the Hungarian context
Journal of International Business Studies, 2007Co-Authors: Marjorie A Lyles, Jane E SalkAbstract:In this paper, we examine organizational characteristics, structural mechanisms and contextual factors that influence knowledge acquisition from the foreign parent in international Joint Ventures (IJVs). We in turn relate assessments of knowledge acquisition to IJV performance. The data come from a survey of IJVs in the Hungarian context, where learning and knowledge acquisition from the foreign parent is thought to be particularly critical. Adaptation mechanisms, such as capacity to learn, articulated goals, and structural mechanisms, such as the provision of training, technology and managerial assistance by foreign parents, all were positively associated with the degree to which IJVs reported acquiring knowledge from their foreign parents. We also found limited support for the belief that cultural conflicts can impede knowledge acquisition, but only for two-party Joint Ventures with 50/50 equity arrangements. We also looked at the relationship between knowledge acquisition and different dimensions for evaluating IJV performance. The relationship between knowledge acquisition and performance was significant for all indicators of performance, through knowledge acquisition from the foreign parent and the organizational characteristics hypothesized to enhance IJV knowledge acquisition affected assessments of some dimensions of performance more than others. Our findings contribute to advancing knowledge about the relationship between organizational characteristics and organizational knowledge acquisition in IJVs, as well as the relationships between knowledge acquisition and different dimensions of IJV performance.
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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, 2005Co-Authors: Jeffrey Q Barden, Kevin H Steensma, Marjorie A LylesAbstract:There has been significant interest in understanding how the distribution of parental control over international Joint Ventures (IJV) influences IJV outcomes (e.g., parent conflict, survival, performance). Yet, the accumulation of research on the relationship between control structure and IJV outcomes has been somewhat inconclusive and even contradictory. We contribute to this research stream by developing an organizational justice-based contingency model relating parental control structure to parent conflict. We suggest that the level of conflict between IJV parents will depend on the consistencies between the control structure and parents’ contribution of proprietary resources, and between control structure and the parents’ abilities to effectively monitor operations. Our analysis of Vietnamese Joint Ventures provides some support for our model, and suggests that the relationship between parent control structure and IJV outcomes is perhaps more complex than previously thought. Journal of International Business Studies (2005) 36, 156–174. doi:10.1057/palgrave.jibs.8400121
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knowledge acquisition and knowledge enablers in international Joint Ventures and their foreign parents
Management International Review, 2003Co-Authors: Marjorie A Lyles, Georg Von Krogh, John Harald AadneAbstract:This study addresses Enablers that facilitate the acquisition of knowledge by international Joint Ventures (IJVs) from their foreign parents. Enablers are important factors influencing the foreign parents’ sharing of knowledge with the IJV. We also posited that Enablers such as Knowledge Acquisition (KA) Capacity, Interaction Climate within the IJV, and Performance are important Enablers for the IJVs’ acquisition of knowledge.
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knowledge acquisition from foreign parents in international Joint Ventures an empirical examination in the hungarian context
Journal of International Business Studies, 1996Co-Authors: Marjorie A Lyles, Jane E SalkAbstract:In this paper we examine organizational characteristics, structural mechanisms and contextual factors that influence knowledge acquisition from the foreign parent in international Joint Ventures (IJVs). We in turn relates assessments of knowledge acquisition to IJV performance. The data come from a survey of IJVs in the Hungarian context, where learning and knowledge acquisition from the foreign parent is thought to be particularly critical. Adaptation mechanism, such as capacity to learn, articulated goals, and structural mechanisms, such as the provision of training, technology and managerial assistance by foreign parents, all were positively associated with the degree to which IJVs reported acquiring knowledge from their foreign parents. We also found limited support for the belief that cultural conflicts can impede knowledge acquisition, but only two-party Joint Ventures with 50/50 equity arrangements. We also looked at the relationship between knowledge acquisition and different dimensions for evaluating IJV performance. The relationship between knowledge acquisition and performance was significant for all indicators of performance, through knowledge acquisition from the foreign parent and the organizational characteristic hypothesized to enhance IJV knowledge acquisition affected assessments of some dimensions of performance more than others. Our findings contribute to advancing knowledge about the relationship between organizational characteristics and organizational knowledge acquisition in IJVs, as well as relationships between knowledge acquisition and different dimension of IJVs performance.© 1996 JIBS. Journal of International Business Studies (1996) 27, 877–903
Jeffrey J Reuer - One of the best experts on this subject based on the ideXlab platform.
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the choice between Joint Ventures and acquisitions insights from signaling theory
Organization Science, 2012Co-Authors: Jeffrey J Reuer, Roberto RagozzinoAbstract:This paper extends information economics in corporate strategy and organizational governance research by using signaling theory to explain firms' market entry modes. We exploit features of the initial public offering (IPO) context to investigate how signals on newly public firms shape other companies' governance choices to form Joint Ventures with them versus acquiring them. We also develop theoretical arguments on how the value of these signals will vary across exchange partners. The results reveal that companies are more apt to acquire, versus partner with, IPO firms taken public by reputable investment banks compared with IPO firms associated with less prominent underwriters. Venture capitalist backing also appears to be a valuable signal for prospective acquirers, particularly when the acquirer and target reside in different industries and possess dissimilar knowledge bases. We also present evidence that signals affect target selection and the emergence of market segmentation for Joint venture partners and acquisition candidates.
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international Joint Ventures and the value of growth options
Academy of Management Journal, 2008Co-Authors: Tony W Tong, Jeffrey J Reuer, Mike W PengAbstract:According to real options theory, international Joint Ventures (IJVs) offer valuable growth options, yet there has been no direct evidence of whether, and under what conditions, firms actually capt...
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international Joint Ventures and the value of growth options
Social Science Research Network, 2005Co-Authors: Tony W Tong, Jeffrey J Reuer, Mike W PengAbstract:Real options theory predicts that international Joint Ventures (IJVs) confer valuable growth options to firms, yet there has been no direct evidence on whether firms actually capture growth option value from such investments and under what conditions. We bridge the gap between theory and evidence by empirically testing this prediction, and we also develop the theoretical arguments that IJVs' ownership structure, product market focus, and geographic location are important attributes influencing the uncertainty surrounding the Ventures and the value of embedded growth options. The empirical evidence confirms that IJVs do enhance firms' growth option values, but only under certain circumstances. Specifically, minority IJVs and diversifying IJVs contribute to growth option value, but other types of IJVs do not. The findings also challenge recent claims on the growth option value of investments in emerging economies.
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real options in international Joint Ventures
Journal of Management, 2005Co-Authors: Jeffrey J Reuer, Tony W TongAbstract:This article empirically investigates the determinants of firms’ use of explicit call options to acquire equity in their international Joint Ventures (IJVs). Such options are an important contractual element of IJVs because they allow a firm to secure a claim on future expansion opportunities and to safeguard itself against various exchange hazards. The authors therefore draw on real options and transaction cost arguments, respectively, to develop hypotheses on the circumstances under which firms use such options. The article underscores the importance of studying the design of alliances in finer grained terms and helps refine the application of real options theory in the alliance context.
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downside risk implications of multinationality and international Joint Ventures
Academy of Management Journal, 2000Co-Authors: Jeffrey J Reuer, Michael J LeibleinAbstract:Investments in dispersed foreign subsidiaries and international Joint Ventures (IJVs) are often thought to enhance corporate flexibility and thereby reduce risk. The authors tested these prediction...
Longkai Zhao - One of the best experts on this subject based on the ideXlab platform.
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national culture and capital structure decisions evidence from foreign Joint Ventures in china
Journal of International Business Studies, 2011Co-Authors: Dale Griffin, Heng Yue, Longkai ZhaoAbstract:We investigate the role of firms’ country of origin in financial leverage decisions. Foreign Joint Ventures in China face a common set of country-level formal institutional constraints, but vary in the cultural values they bring from their countries of origin. We hypothesize that national culture enters the Joint optimization process, leading to foreign Joint Ventures’ leverage decisions, and that it affects leverage decisions both directly and indirectly. Employing a hierarchical linear model distinguishing firm-level from country-level variables, and a data set covering over 8000 foreign Joint Ventures in China from 32 different countries and regions in the year 2002, we find that mastery has negative and significant direct effects on foreign Joint Ventures’ leverage and short-term debt decisions, and a positive and significant direct effect on the likelihood of foreign Joint Ventures having long-term debt. The indirect effects of mastery on leverage decisions sometimes reinforce and sometimes offset the direct effects. Embeddedness has no significant direct effect on foreign Joint Ventures’ leverage decisions, but exerts its influence entirely through indirect effects. Finally, the economic significance analysis of the total effects suggests that national culture has significant explanatory power in the leverage decisions of foreign Joint Ventures in China.
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national culture and capital structure decisions evidence from foreign Joint Ventures in china
Social Science Research Network, 2010Co-Authors: Dale Griffin, Heng Yue, Longkai ZhaoAbstract:We investigate the role of firms’ country of origin in financial leverage decisions using data on foreign Joint Ventures in China. We hypothesize that national culture enters the Joint optimization process leading to foreign Joint Ventures’ leverage decisions and that it affects leverage decisions both directly and indirectly. Using cultural values of mastery and embeddedness to explain country of origin effects, we find that mastery has negative and significant direct effects on foreign Joint Ventures’ leverage and short-term debt decisions, and a positive and significant direct effect on the likelihood of foreign Joint Ventures’ having long-term debt. The indirect effects of mastery on leverage decisions sometimes reinforce and sometimes offset the direct effects. Embeddedness has no significant direct effect on foreign Joint Ventures’ leverage decisions, but exerts its influence entirely through indirect effects. Finally, the economic significance analysis of the total effects suggests that national culture has significant explanatory power in the leverage decisions of foreign Joint Ventures in China.
Bernard Yeung - One of the best experts on this subject based on the ideXlab platform.
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innocents abroad the hazards of international Joint Ventures with pyramidal group firms
Global Strategy Journal, 2014Co-Authors: Susan Perkins, Randall Morck, Bernard YeungAbstract:We examine international Joint Ventures in the telecommunications industry in Brazil, where pyramidal groups are ubiquitous. We explain how corporate governance differences between pyramidal groups versus widely held freestanding firms can lead to Joint venture failures. Our empirical results show that Joint Ventures between pyramidal group-member firms and partners from countries where pyramids are rare have significantly elevated failure rates, while Joint Ventures with partners from countries where pyramidal groups are ubiquitous are more likely to succeed. Further, we provide clinical examples illustrating the mechanisms driving divergent partnership performance.
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innocents abroad the hazards of international Joint Ventures with pyramidal group firms
Social Science Research Network, 2012Co-Authors: Susan Perkins, Randall Morck, Bernard YeungAbstract:The fundamental unit of production in microeconomics is the firm, which mirrors reality in the United States and United Kingdom. But elsewhere, business groups can be the more important unit for business strategy; not the firm. We examine international Joint Ventures in the telecoms industry in Brazil, where pyramidal groups are ubiquitous. We explain how corporate governance differences between agency behaviors in pyramidal groups versus freestanding widely held firms can lead to Joint venture failures. We find Joint Ventures between pyramidal group-member firms and partners from countries where pyramids are rarer have significantly elevated failure rates; while Joint Ventures with partners from countries where pyramidal groups are ubiquitous are more likely to succeed. We provide clinical examples illustrating the mechanisms driving divergent partnership performance.
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innocents abroad the hazards of international Joint Ventures with pyramidal group firms
Research Papers in Economics, 2008Co-Authors: Susan Perkins, Randall Morck, Bernard YeungAbstract:The fundamental unit of production in microeconomics is the firm, and this mirrors reality in the United States and United Kingdom. But elsewhere, business groups can be the more important unit, for business strategy is often formulated at the business group level, not the firm level. In many countries, this is legally enshrined in corporate governance codes that assign officers and directors a duty to act for their business group, not their firm or its shareholders. Even where a duty to individual firms' shareholders exists, business groups often have pyramidal structures of intercorporate blockholdings that entrench controlling shareholders, usually wealthy families, who run their groups to maximize their utility. This can impose exacerbated agency problems. In either case, foreign Joint venture partners who expect domestic firms to maximize shareholder value can be sorely disappointed. We explain agency behavior in business groups and how controlling insiders can divert resources between firms they control, including Joint Ventures, to enrich themselves; and highlight differences between this behavior and agency problems in freestanding firms. We then examine the telecoms industry in Brazil, a country in which most large businesses belong to pyramidal business groups controlled by wealthy families. We find that Joint Ventures between Brazilian telecoms firms and partners from countries where business groups are rarer have significantly elevated failure rates; while Joint Ventures with foreign partners from countries where pyramidal groups are more common are more likely to succeed. We then present clinical examples illustrating the mechanisms that drive such divergent performance in Joint venture partnerships. While our results are based on a single industry in a single country, we believe they highlight a previously unexamined important issue in international business strategy.
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an empirical investigation of Joint venture dynamics evidence from u s japan Joint Ventures
International Journal of Industrial Organization, 1996Co-Authors: Masao Nakamura, Myles J Shaver, Bernard YeungAbstract:Joint Ventures generate information and lead to substantial information exchanges between the partner firms stemming from their interactions. Therefore, Joint Ventures are expected to have a feedback effect on their parent firms. We propose to test Jointly the following hypotheses. First, there are two interaction scenarios between the Joint venture partners: the parent firms become more alike in their competitive capabilities or their competitive capabilities become more dissimilar but complementary. Second, long-lasting Joint Ventures are those in which partner firms' competitive capabilities have become dissimilar but complementary. Using the partial least squares (PLS) technique and cross-sectional data on U.S.-Japan Joint Ventures in Japan we obtain supportive empirical evidence.
