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Termination of Related and Unrelated Joint Ventures: A Contingency Approach

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journal contribution
posted on 12.11.2013 by Anna Shaojie Cui, M.V. Shyam Kumar
Previous research has investigated various factors that influence joint venture (JV) termination. Yet the majority of studies do not distinguish between different types of JVs, particularly whether a JV is related or unrelated to the parent firm. Due to their inherent differences, related and unrelated JVs are likely to evolve distinctly, and their tendency to terminate may also differ under various conditions. This study takes a contingency approach and argues the impact of various factors on JV termination depends upon relatedness. An event history analysis finds increases in environmental uncertainty and higher resource complementarity reduce the likelihood that a firm will terminate unrelated JVs as compared to related JVs. Conversely parent firm performance and wider JV scope increase the likelihood that the firm will terminate unrelated JVs as compared to related JVs. The findings suggest the need to consider JV relatedness in understanding of JV evolution and termination.

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Publisher Statement

NOTICE: This is the author’s version of a work that was accepted for publication in Journal of Business Research. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Business Research, Vol 65, Issue 8, 2012 DOI: 10.1016/j.jbusres.2011.07.003

Publisher

Elsevier

Language

en_US

issn

0148-2963

Issue date

01/12/2011

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