EconPapers    
Economics at your fingertips  
 

Stability of international joint ventures: When experience and age overshadow host country risk

Hamza Aib

Journal of International Management, 2024, vol. 30, issue 6

Abstract: This study examines how host country risk affects the stability of international joint ventures (IJVs). Besides, it examines the moderating impact of experience in the host country and age of the IJV on the association between country risk and IJV stability. We use transaction cost economics (TCE) to hypothesize a detrimental impact of host country risk and IJV stability. Additionally, we integrate TCE and knowledge-based theory (KBT) to develop the hypotheses suggesting that the negative association between country risk and IJV stability is moderated by experience in the IJV's host country and the age of the IJV. Using a dataset on 140 IJVs established between French and cross-border partners, and employing event history analysis to assess IJV stability over time, we find that host country risk has a detrimental impact on IJV stability. Furthermore, we find that the degree of experience possession in IJV's host country and the age of the IJV moderate the negative association between host country risk and IJV stability.

Keywords: International joint venture stability; Host country risk; Host country experience; IJV age; Transaction cost economics; Knowledge-based theory (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1075425324000863
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:intman:v:30:y:2024:i:6:s1075425324000863

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/bibliographic
http://www.elsevier. ... 601266/bibliographic

DOI: 10.1016/j.intman.2024.101205

Access Statistics for this article

Journal of International Management is currently edited by M. Kotabe

More articles in Journal of International Management from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-05-25
Handle: RePEc:eee:intman:v:30:y:2024:i:6:s1075425324000863