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The contingent effect of state participation on the dissolution of international joint ventures: A resource dependence approach

Mohr, A.
; 
Wang, Chengang
; 
Fastoso, Fernando
Publication Date
2016-05
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Keywords
Alliances and joint ventures, Resource dependency, Business and Government interaction, Corporate political strategy, Duration analysis, Emerging markets, Emerging countries, Emerging economies
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(c) 2016 Academy of International Business. Full-text reproduced in accordance with the publisher's self-archiving policy.
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openAccess
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Management and Law Publications
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Abstract
We adopt a resource dependence approach to explain the effect of state participation on the dissolution of international joint ventures (IJVs). While resource dependence theory has been used to explain the formation of IJVs, we propose an extension of the theory to explain their dissolution. We do so by highlighting the match between foreign firms’ resource needs (resource hierarchy) and the resource provision roles of state-controlled versus private local partners (resource profiles). We further argue that the effect of state participation on the dissolution of IJVs is moderated by foreign firms’ host country experience and IJV age. We test our hypotheses by using data on 623 IJVs in China. Our results show that state participation reduces the risk of IJV dissolution and that the strength of this effect differs depending on the type of state-controlled actor that is involved in an IJV. We also find that host country experience and IJV age moderate the effect of state participation on IJV dissolution. These findings enhance our understanding of IJV dissolution and contribute to the development of resource dependence theory.
URI
http://hdl.handle.net/10454/8915
Version
Accepted manuscript
Citation
Mohr A, Wang C and Fastoso F (2016) The contingent effect of state participation on the dissolution of international joint ventures: A resource dependence approach. Journal of International Business Studies. 47(4): 408-426.
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https://doi.org/10.1057/jibs.2016.14
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