Equity sharing in international joint ventures: An empirical analysis of strategic and environmental determinants

Research output: Contribution to journalArticle

24 Citations (Scopus)

Abstract

Equity sharing in international joint ventures (IJVs) is a critical issue with implications for risk sharing, resource allocation, knowledge commitment, and organizational control. As a departure from previous research, this study aims to explore strategic antecedents and environmental dimensions underlying sharing arrangements. It argues that the structure of equity sharing controls the ex post degree of economic exposure or risk propensity, and boosts risk-adjusted returns earned from strategic resources or global integration. Analysis of data collected from IJVs in China suggests that strategic orientation, resource dependence, knowledge protection, and global integration as sought by MNEs are important antecedents of equity sharing. Equity sharing is an inverse function of host-country environmental complexity and hostility as perceived by MNE managers.

Original languageEnglish (US)
Pages (from-to)31-58
Number of pages28
JournalJournal of International Management
Volume7
Issue number1
DOIs
StatePublished - Mar 2001

Fingerprint

Equity
International joint ventures
Empirical analysis
Multinational enterprises
Global integration
Strategic orientation
Environmental complexity
Host country
Organizational control
Economic exposure
Risk propensity
China
Risk sharing
Resource allocation
Managers
Strategic resources
Resource dependence
Knowledge protection
Risk-adjusted returns
Hostility

Keywords

  • Equity sharing
  • Joint venture
  • Strategic analysis

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Finance

Cite this

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