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Revisiting multinational firms' tolerance for joint ventures: a trust-based approach

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  • Anoop Madhok

    ([1] Schulich School of Business, York University, Toronto, Canada [2] Formerly of the University of Utah, Salt Lake City, USA)

Abstract

In spite of the increasing popularity of international joint ventures, managers express a high level of dissatisfaction with them. This paper argues that overemphasis on the outcome has resulted in a neglect of the social processes underlying the outcome. The paper elaborates upon the rationale for a cooperative approach towards interorganizational collaborative relationships based on trust, and discusses it in the context of joint ventures. This is then applied towards understanding multinational ownership preferences and tolerance for joint ventures. It is argued that trust-centered logic is largely consistent with approaches that emphasize the issue of ownership, and deepens and enriches the insights provided by the latter. A shift in focus from ownership to relational dynamics is encouraged. Journal of International Business Studies (2006) 37, 30–43. doi:10.1057/palgrave.jibs.8400161

Suggested Citation

  • Anoop Madhok, 2006. "Revisiting multinational firms' tolerance for joint ventures: a trust-based approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(1), pages 30-43, January.
    • Handle: RePEc:pal:jintbs:v:37:y:2006:i:1:p:30-43
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    Citations

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    Cited by:

    1. Meuleman, Miguel & Jääskeläinen, Mikko & Maula, Markku V.J. & Wright, Mike, 2017. "Venturing into the unknown with strangers: Substitutes of relational embeddedness in cross-border partner selection in venture capital syndicates," Journal of Business Venturing, Elsevier, vol. 32(2), pages 131-144.
    2. Hyo Eun Cho & Jon Jungbien Moon & Insik Jeong, 2022. "Equal ownership split in international joint ventures: performance implications in an emerging market," Asian Business & Management, Palgrave Macmillan, vol. 21(2), pages 205-230, April.
    3. Yong Suhk Pak & Jong Min Lee, 2023. "Organizational learning platforms for knowledge creation in international joint ventures: the mediating role of formal and informal communication," Asian Business & Management, Palgrave Macmillan, vol. 22(5), pages 2135-2163, November.
    4. Paul Brockman & Sadok El Ghoul & Omrane Guedhami & Ying Zheng, 2022. "Does social trust affect international contracting? Evidence from foreign bond covenants," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 1011-1044, August.
    5. Carney, Michael & Dieleman, Marleen & Taussig, Markus, 2016. "How are institutional capabilities transferred across borders?," Journal of World Business, Elsevier, vol. 51(6), pages 882-894.
    6. Gomaa Agag, 2019. "E-commerce Ethics and Its Impact on Buyer Repurchase Intentions and Loyalty: An Empirical Study of Small and Medium Egyptian Businesses," Journal of Business Ethics, Springer, vol. 154(2), pages 389-410, January.
    7. Abubakr Saeed & Hammad Riaz, 2021. "Navigating through firm–environmental groups' relationships: The impact of societal trust on corporate environmental strategy," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 3552-3568, December.
    8. Pak, Yong Suhk & Ra, Wonchan & Lee, Jong Min, 2015. "An integrated multi-stage model of knowledge management in international joint ventures: Identifying a trigger for knowledge exploration and knowledge harvest," Journal of World Business, Elsevier, vol. 50(1), pages 180-191.
    9. Li, Shenxue & Clark, Timothy & Sillince, John, 2018. "Constructing a strategy on the creation of core competencies for African companies," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 204-213.
    10. Shin, Jong-Kuk & Park, Min-Sook & Ingram, Rhea, 2012. "Market orientation and communication methods in international strategic alliances," Journal of Business Research, Elsevier, vol. 65(11), pages 1606-1611.
    11. Hyo Eun Cho & Jon Jungbien Moon & Insik Jeong, 0. "Equal ownership split in international joint ventures: performance implications in an emerging market," Asian Business & Management, Palgrave Macmillan, vol. 0, pages 1-26.
    12. Radtke, Robin R. & Speklé, Roland F. & Widener, Sally K., 2023. "Flourish or flounder: Do trust-centric management controls encourage knowledge sharing and team performance?," Accounting, Organizations and Society, Elsevier, vol. 107(C).
    13. Le Nguyen, Huu & Larimo, Jorma & Ali, Tahir, 2016. "How do ownership control position and national culture influence conflict resolution strategies in international joint ventures?," International Business Review, Elsevier, vol. 25(2), pages 559-568.
    14. Simon Pek & Chang Hoon Oh & Jorge Rivera, 2018. "MNC foreign investment and industrial disasters: The moderating role of technological, safety management, and philanthropic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 39(2), pages 502-526, February.
    15. Stanczyk-Hugiet E. & Kozyra C. & Piorkowska K. & Stanczyk S., 2020. "Organisational Routines and Interfirm Collaboration: Measurement Dilemmas and Recommendations for Further Research Steps," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 1086-1117.
    16. Christina Marie Mitcheltree, 2021. "Enhancing innovation speed through trust: a case study on reframing employee defensive routines," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-31, December.
    17. Ángela González-Moreno & Pablo Ruiz-Palomino & Francisco J. Sáez-Martínez, 2019. "Can CEOs’ Corporate Social Responsibility Orientation Improve Firms’ Cooperation in International Scenarios?," Sustainability, MDPI, vol. 11(24), pages 1-14, December.
    18. Paul Brockman & Sadok El Ghoul & Omrane Guedhami & Ying Zheng, 0. "Does social trust affect international contracting? Evidence from foreign bond covenants," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-34.
    19. Dovev Lavie & Randi Lunnan & Binh Minh T. Truong, 2022. "How does a partner's acquisition affect the value of the firm's alliance with that partner?," Strategic Management Journal, Wiley Blackwell, vol. 43(9), pages 1897-1926, September.
    20. Kwok, Francis & Sharma, Piyush & Gaur, Sanjaya Singh & Ueno, Akiko, 2019. "Interactive effects of information exchange, relationship capital and environmental uncertainty on international joint venture (IJV) performance: An emerging markets perspective," International Business Review, Elsevier, vol. 28(5), pages 1-1.

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