When to go it alone: Examining post-conversion performance of international joint ventures

Sea-Jin Chang ()
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Sea-Jin Chang: National University of Singapore

Journal of International Business Studies, 2019, vol. 50, issue 6, No 7, 998-1020

Abstract: Abstract This study examines the decision to convert international joint ventures to either foreign or local wholly owned entities and the subsequent impact on performance from the perspective of incomplete contract theory. With China’s relaxation of the joint venture requirement, foreign partners are more likely to take full control and thereby improve performance in provinces with fewer institutional barriers and industries with high intangible asset intensity, while local partners are more likely to do so in provinces with higher institutional barriers and low intangible asset intensity. Furthermore, the performance improvement is more salient when transitioning from foreign minority-local majority joint ventures.

Keywords: international joint ventures; wholly owned subsidiaries; acquisition; incomplete contract theory; property rights theory; performance (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (12)

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DOI: 10.1057/s41267-018-00211-7

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