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

• 成果类型: Article
• 署名作者: Chang, Sea-Jin
• 署名单位: National University of Singapore; Korea Advanced Institute of Science & Technology (KAIST)
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-018-00211-7
• 发表日期: 2019
• 页码: 998-1020
• 关键词: International joint ventures; wholly owned subsidiaries; acquisition; incomplete contract theory; Property rights theory; performance

摘要

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.