Knowledge about determinants, processes, and outcomes of negotiation can help international business managers employ appropriate collaborative strategies that will result in maximum benefits. This article tackles a prominent issue in the dynamic, evolutionary process of international joint venture (IJV) development: contract negotiations during IJV formation. Building on a sociopsychological perspective together with transaction cost theory, this article presents an integrated conceptual framework on IJV negotiations in a general context where relevant antecedent, concurrent, and consequent factors are interlocked and mutually influential in sequence. It articulates three levels of antecedents of IJV negotiations (environmental, organizational, and individual), three core concurrent factors (term specificity, issue diversity, and contractual obligability, and three sequential consequences including the immediate outcome (IJV formation satisfaction), intermediate effect (IJV process performance), and ultimate effect (IJV overall performance). The interrelationships among them are proposed.
- Joint ventures
ASJC Scopus subject areas
- Business and International Management
- Strategy and Management