Keeping international joint ventures stable and profitable

Paul W. Beamish, Andrew C. Inkpen

Research output: Contribution to journalArticle

67 Scopus citations

Abstract

If international joint ventures are inherently unstable organizational forms, as researchers and managers have suggested, why do some ventures survive and prosper for many years? This article argues that foreign partners' knowledge of the local economic, political, and cultural environments is a critical factor in the stability of international joint ventures. When the foreign partner is no longer satisfied with access to local knowledge and seeks to acquire this knowledge, the probability of joint venture instability increases substantially. This article suggests that if managers are aware of the factors influencing joint venture stability, they may be able to prevent or control premature changes in partner relationships.

Original languageEnglish (US)
Pages (from-to)2-3,26-36
JournalLong Range Planning
Volume28
Issue number3
DOIs
StatePublished - Jun 1995
Externally publishedYes

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Finance
  • Strategy and Management

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