Selected empirical studies on IJV termination (without differentiation of termination outcomes)
| Dependent variable | Explanatory variables | Theoretical background | Focus of the study | Empirical findings | |
|---|---|---|---|---|---|
| Barkema and Vermeulen (1997) | Termination | Endogenous (different dimensions of cultural distance) | No explicit reference to a specific theory | Examine the effect of different dimensions of cultural distance on the survival of IJVs | Uncertainty avoidance and long-term orientation increases IJV mortality |
| Chung and Beamish (2012) | Termination | Endogenous (structural change, prior performance, number of partners, nature of equity distribution) | TCE | Examine the relationships among structural changes, the number of partners in the IJV and IJV performance and survival | Before an initial structural change occurred, IJVs with more partners were less likely to be terminated. Once an initial change was undertaken, IJVs with more partners were more likely to be terminated |
| Dhanaraj and Beamish (2004) | Termination | Endogenous (equity stake) | TCE | Examine the effect of equity stake on the mortality of overseas subsidiaries | Subsidiaries with small foreign equity stakes have higher mortality rates than subsidiaries with large foreign equity stakes |
| Kogut (1989) | Termination | Endogenous and exogenous (partner ties, R&D intensity, marketing intensity, scale intensity, change in concentration, R&D, production, marketing/distribution, industry structural conditions) | No explicit reference to a specific theory | Examine the effects of several determinants of joint venture failure | Partner ties in terms of supply agreements have no effect on the hazard rate, but other licensing and joint venture ties decrease the likelihood of termination |
| Lu and Hébert (2005) | Termination | Endogenous (asset specificity, equity control, social knowledge, internal uncertainty, host country and industry experience, cultural distance) | TCE | Examine the moderating effects of asset specificity, internal uncertainty and external uncertainty on the relationship between level of foreign ownership and IJV survival | High levels of foreign ownership increase the survival of IJVs under conditions of asset specificity. Social knowledge increases IJV survival |
| Makino and Beamish (1998) | Termination | Endogenous (ownership structure) | No explicit reference to a specific theory | Examine the effect of ownership structure on performance and survival likelihood | Traditional IJVs and Trinational IJVs had a greater likelihood of termination than intrafirm JVs or cross-national domestic JVs |
| Meschi and Riccio (2008) | Termination | Exogenous and endogenous (economic and political risk, national cultural distance) | No explicit reference to a specific theory | Examine the effect of national cultural differences and country risk on the survival of IJVs in Brazil | The survival of these alliances does not seem to be affected either by economic or political risk in Brazil |
| Meschi (2005) | Termination | Exogenous (economic and political risk) | Population ecology, industrial organization, resource dependence, TCE | Examine the effect of country risk on the survival of international joint ventures formed by foreign partners originating from the European Union and local partners from different emerging countries | Higher economic risk leads to a higher survival rate, and political risk is not related to survival rates |
| Meschi et al. (2017) | Termination | Endogenous (asymmetric financial strength between the partners and equity stake of the local partner) | Social exchange theory | Examine how asymmetric financial strength between the partners influences IJV termination in emerging economies | Asymmetric financial strength increases the likelihood of termination. High local partner financial strength is less detrimental to IJV survival than low local partner financial strength. Under both conditions, IJV survival is higher when the local partner holds the highest equity stake |
| Steensma and Lyles (2000) | Termination | Endogenous (Management control structure, ownership control structure, foreign partner technical and management support) | Social exchange theory and the knowledge-based perspective | Examine the drivers of the survival of IJVs in Hungary | Imbalance in the management control structure between the parents increase the likelihood of IJV failure. Imbalance in the ownership control structure has no influence on IJV survival. Support from the foreign parent is positively related to IJV survival |
| Dependent variable | Explanatory variables | Theoretical background | Focus of the study | Empirical findings | |
|---|---|---|---|---|---|
| Termination | Endogenous (different dimensions of cultural distance) | No explicit reference to a specific theory | Examine the effect of different dimensions of cultural distance on the survival of IJVs | Uncertainty avoidance and long-term orientation increases IJV mortality | |
| Termination | Endogenous (structural change, prior performance, number of partners, nature of equity distribution) | TCE | Examine the relationships among structural changes, the number of partners in the IJV and IJV performance and survival | Before an initial structural change occurred, IJVs with more partners were less likely to be terminated. Once an initial change was undertaken, IJVs with more partners were more likely to be terminated | |
| Termination | Endogenous (equity stake) | TCE | Examine the effect of equity stake on the mortality of overseas subsidiaries | Subsidiaries with small foreign equity stakes have higher mortality rates than subsidiaries with large foreign equity stakes | |
| Termination | Endogenous and exogenous (partner ties, R&D intensity, marketing intensity, scale intensity, change in concentration, R&D, production, marketing/distribution, industry structural conditions) | No explicit reference to a specific theory | Examine the effects of several determinants of joint venture failure | Partner ties in terms of supply agreements have no effect on the hazard rate, but other licensing and joint venture ties decrease the likelihood of termination | |
| Termination | Endogenous (asset specificity, equity control, social knowledge, internal uncertainty, host country and industry experience, cultural distance) | TCE | Examine the moderating effects of asset specificity, internal uncertainty and external uncertainty on the relationship between level of foreign ownership and IJV survival | High levels of foreign ownership increase the survival of IJVs under conditions of asset specificity. Social knowledge increases IJV survival | |
| Termination | Endogenous (ownership structure) | No explicit reference to a specific theory | Examine the effect of ownership structure on performance and survival likelihood | Traditional IJVs and Trinational IJVs had a greater likelihood of termination than intrafirm JVs or cross-national domestic JVs | |
| Termination | Exogenous and endogenous (economic and political risk, national cultural distance) | No explicit reference to a specific theory | Examine the effect of national cultural differences and country risk on the survival of IJVs in Brazil | The survival of these alliances does not seem to be affected either by economic or political risk in Brazil | |
| Termination | Exogenous (economic and political risk) | Population ecology, industrial organization, resource dependence, TCE | Examine the effect of country risk on the survival of international joint ventures formed by foreign partners originating from the European Union and local partners from different emerging countries | Higher economic risk leads to a higher survival rate, and political risk is not related to survival rates | |
| Termination | Endogenous (asymmetric financial strength between the partners and equity stake of the local partner) | Social exchange theory | Examine how asymmetric financial strength between the partners influences IJV termination in emerging economies | Asymmetric financial strength increases the likelihood of termination. High local partner financial strength is less detrimental to IJV survival than low local partner financial strength. Under both conditions, IJV survival is higher when the local partner holds the highest equity stake | |
| Termination | Endogenous (Management control structure, ownership control structure, foreign partner technical and management support) | Social exchange theory and the knowledge-based perspective | Examine the drivers of the survival of IJVs in Hungary | Imbalance in the management control structure between the parents increase the likelihood of IJV failure. Imbalance in the ownership control structure has no influence on IJV survival. Support from the foreign parent is positively related to IJV survival |
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