IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-00597770.html
   My bibliography  Save this paper

The Role of Knowhow Acquisition in the Formation and Duration of Joint Ventures

Author

Listed:
  • Michel Habib

    (Swiss Banking Institute - UZH - Universität Zürich [Zürich] = University of Zurich)

  • Pierre Mella-Barral

    (Institute of Finance and Accounting - London Business School)

Abstract

We analyze the role of knowhow acquisition in the formation and duration of joint ventures. Two parties become partners in a joint venture to benefit from each other's knowhow. Joint operations provide each party with the opportunity to acquire part of its partner's knowhow. A party's increased knowhow provides the impetus for the dissolution of the joint venture. We characterize the conditions under which dissolution takes place, identify the party that buys out its partner, determine the time to dissolution, establish its comparative statics, and examine the implications of knowledge acquisition for the desirability of joint venture formation.

Suggested Citation

  • Michel Habib & Pierre Mella-Barral, 2003. "The Role of Knowhow Acquisition in the Formation and Duration of Joint Ventures," Working Papers hal-00597770, HAL.
    • Handle: RePEc:hal:wpaper:hal-00597770
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nishide, Katsumasa & Tian, Yuan, 2011. "Compensation measures for alliance formation: A real options analysis," Economic Modelling, Elsevier, vol. 28(1), pages 219-228.
    2. Bukhvalov, A. & Alekseeva, O., 2016. "International joint venture acquisition by a foreign or local partner," Working Papers 6439, Graduate School of Management, St. Petersburg State University.
    3. Habib, Michel A. & Mella-Barral, Pierre, 2013. "Skills, core capabilities, and the choice between merging, allying, and trading assets," Journal of Mathematical Economics, Elsevier, vol. 49(1), pages 31-48.
    4. Spencer A. Case & D. Scott Lee & John D. Martin, 2007. "The potential for expropriation through joint ventures," Review of Financial Economics, John Wiley & Sons, vol. 16(1), pages 111-126.
    5. Mantecon, Tomas & Liu, Ian & Gao, Fei, 2012. "Empirical evidence of the value of monitoring in joint ownership," Journal of Banking & Finance, Elsevier, vol. 36(4), pages 1045-1056.
    6. Hori, Keiichi & Osano, Hiroshi, 2014. "Investment timing decisions of managers under endogenous contracts," Journal of Corporate Finance, Elsevier, vol. 29(C), pages 607-627.
    7. Ancarani, Alessandro & Di Mauro, Carmela & Fratocchi, Luciano & Orzes, Guido & Sartor, Marco, 2015. "Prior to reshoring: A duration analysis of foreign manufacturing ventures," International Journal of Production Economics, Elsevier, vol. 169(C), pages 141-155.
    8. Case, Spencer A. & Lee, D. Scott & Martin, John D., 2007. "The potential for expropriation through joint ventures," Review of Financial Economics, Elsevier, vol. 16(1), pages 111-126.
    9. Cvitanic, Jaksa & Radas, Sonja & Sikic, Hrvoje, 2011. "Co-development ventures: Optimal time of entry and profit-sharing," Journal of Economic Dynamics and Control, Elsevier, vol. 35(10), pages 1710-1730, October.
    10. Lai, Jung-Ho & Chen, Li-Yu & Chen, Carl R., 2017. "Agency hazard, managerial incentives, and the wealth effects of joint venture investments," International Review of Financial Analysis, Elsevier, vol. 52(C), pages 190-202.
    11. Beshears, John, 2013. "The performance of corporate alliances: Evidence from oil and gas drilling in the Gulf of Mexico," Journal of Financial Economics, Elsevier, vol. 110(2), pages 324-346.

    More about this item

    Keywords

    Continuous-Time Corporate Finance; Joint Ventures; Knowhow Acquisition; Optimal Dissolution Time; Continuous-Time Corporate Finance.;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:hal-00597770. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.