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Partner Conflicts in International Joint Ventures: A Minority Owner Perspective

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  • Westman, Christoffer
  • Thorgren, Sara

Abstract

Partnering through international joint ventures (IJVs) is heralded as a key for smaller firms to gain access to resources and knowledge and expand into new geographic markets. Although it is well-known that IJVs rarely survive over an extended time, little attention has been given to partner conflicts as a source of IJVs terminating. The present article approaches partner conflicts in IJVs with unequal equity ratio and argues that being a minority partner in an IJV requires certain precautions. The authors report on a longitudinal case study of how conflicts emerged, grew, and exploded in an IJV that operated from 2005 until 2014 by identifying ten critical events that occurred and conditions that exacerbated the partners' conflicts and the IJV's demise. The authors conclude by discussing how companies entering an IJV as a minority owner can proactively use the insights gained and by providing suggestions for future IJV research.

Suggested Citation

  • Westman, Christoffer & Thorgren, Sara, 2016. "Partner Conflicts in International Joint Ventures: A Minority Owner Perspective," Journal of International Management, Elsevier, vol. 22(2), pages 168-185.
  • Handle: RePEc:eee:intman:v:22:y:2016:i:2:p:168-185
    DOI: 10.1016/j.intman.2015.12.002
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    Citations

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    Cited by:

    1. Rana, Mohammad B. & Elo, Maria, 2017. "Transnational Diaspora and Civil Society Actors Driving MNE Internationalisation: The Case of Grameenphone in Bangladesh," Journal of International Management, Elsevier, vol. 23(1), pages 87-106.
    2. Jeffrey J. Reuer & Elko Klijn & Shivaram Devarakonda & René Olie, 2024. "Veto rights in international joint ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(7), pages 880-895, September.
    3. Huang, Ming-Chang & Chiu, Ya-Ping, 2020. "A knowledge tension perspective on management control and performance in international joint ventures," Journal of International Management, Elsevier, vol. 26(4).
    4. Yang, Wei & Meyer, Klaus E., 2019. "How does ownership influence business growth? A competitive dynamics perspective," International Business Review, Elsevier, vol. 28(5), pages 1-1.
    5. Kabiraj, Tarun & Sengupta, Sarbajit, 2018. "A theory of joint venture instability under inter-partner learning," Research in International Business and Finance, Elsevier, vol. 46(C), pages 363-372.
    6. Mingfeng Tang & Grace Walsh & Daniel Lerner & Markus A. Fitza & Qiaohua Li, 2018. "Green Innovation, Managerial Concern and Firm Performance: An Empirical Study," Business Strategy and the Environment, Wiley Blackwell, vol. 27(1), pages 39-51, January.
    7. Debellis, Francesco & De Massis, Alfredo & Messeni Petruzzelli, Antonio & Frattini, Federico & Del Giudice, Manlio, 2021. "Strategic agility and international joint ventures: The willingness-ability paradox of family firms," Journal of International Management, Elsevier, vol. 27(1).
    8. Hui, Kent N. & Hult, G. Tomas M. & Ketchen, David J., 2020. "Causal attribution for peer performance and international joint venture divestment," Journal of International Management, Elsevier, vol. 26(2).
    9. Nakul Parameswar & Sanjay Dhir & Sushil, 2020. "Interpretive Ranking of Choice of Interaction of Parent Firms Post-International Joint Venture Termination using TISM-IRP," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(1), pages 1-16, March.
    10. Tao Bai & Jialin Du & Angelo M. Solarino, 2018. "Performance of foreign subsidiaries “in” and “from” Asia: A review, synthesis and research agenda," Asia Pacific Journal of Management, Springer, vol. 35(3), pages 607-638, September.
    11. Song, Sangcheol, 2022. "Determining investment size and local embeddedness under host market uncertainty and growth rates," International Business Review, Elsevier, vol. 31(2).

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