Purpose of international joint venture and interaction post termination
by Nakul Parameswar; Sanjay Dhir; Viput Ongsakul
J. for Global Business Advancement (JGBA), Vol. 11, No. 6, 2018

Abstract: International joint ventures (IJV) are a prominent mode to enter and exploit a new market and have attracted several researchers to explore various phases and actions undertaken in IJV. Few studies in the literature discuss the effect of IJV experience on parent firms interaction post termination of their IJV. This study attempts to explore the effect of purpose of IJV for domestic and foreign firms - resource seeking, capital seeking, market seeking and strategic asset seeking on the choice of interaction post IJV termination as supplier-buyer, complement or competitor. Empirical analysis is conducted on data of 180 terminated two-partner IJVs headquartered in India during 2000-2016 time period using multinomial logistics regression (MLR). Results suggest that both the domestic firm's and the foreign firm's purpose of IJV influences the choice of interaction post IJV termination.

Online publication date: Fri, 08-Feb-2019

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