Environmental Risks and Joint Venture Sharing Arrangements

Weijian Shan
Additional contact information
Weijian Shan: Wharton School, University of Pennsylvania

Journal of International Business Studies, 1991, vol. 22, issue 4, 555-578

Abstract: Multinational enterprises (MNEs) have responded to the open-door policies of socialist countries in recent years by investing in their economies through joint ventures. MNEs must formulate their investment strategies to control and manage the environmental risks peculiar to a traditional centrally planned economy (CPE) in which contextual and transactional environments are blurred. Joint venture sharing arrangements may be structured to control exposures to uncertainties and to align the interests of transactional parties, mostly state-owned enterprises, to those of the venture. The study tests the hypothesis that a foreign investor's share in a joint venture in a CPE is inversely correlated with (1) the amount of uncertainties and risks and (2) the external dependency of the venture on the contextual and transactional relationships of the host country. The hypothesis is supported by empirical evidence from data on American joint ventures in China.© 1991 JIBS. Journal of International Business Studies (1991) 22, 555–578

Date: 1991
References: Add references at CitEc
Citations: View citations in EconPapers (51)

Downloads: (external link)
http://www.palgrave-journals.com/jibs/journal/v22/n4/pdf/8490314a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jibs/journal/v22/n4/full/8490314a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

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:pal:jintbs:v:22:y:1991:i:4:p:555-578

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2

Access Statistics for this article

Journal of International Business Studies is currently edited by John Cantwell

More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().