 Does responsibility breed stability? An institutional framework on the link between partner corporate social responsibility and joint venture terminationQing Dai and Lucas Liang Wang Journal of Business Research, 2024, vol. 183, issue C Abstract: Joint ventures (JVs) are one of the most common governance structures for interfirm cooperation but also highly unstable. Building on institutional theory, this study argues that corporate social responsibility (CSR) of a partner can mitigate the risk of JV termination by enhancing the venture’s legitimacy. This legitimization effect of partner CSR is expectedly stronger for JVs that lack direct justifications for legitimacy or engage with similar stakeholder groups. However, the effect of partner CSR on JV legitimacy and stability diminishes if the partner is state-owned or holds less ownership in the JV. Empirical evidence from 256 JVs supports all the hypothesized relationships in our institutional framework. This study forges a critical link between responsibility and stability in the partner-JV dyad, thereby expanding the understanding of JV termination and CSR. Keywords: Joint venture termination; Corporate social responsibility; Institutional theory; Cox hazard model (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:183:y:2024:i:c:s0148296324003187 DOI: 10.1016/j.jbusres.2024.114814 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
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