TOWARD UNDERSTANDING JOINT VENTURE PERFORMANCE AND SURVIVAL: A BARGAINING AND INFLUENCE APPROACH TO TRANSACTION COST THEORY

The author posits that the joint venture (JV) form of governance imposes a greater burden of bargaining and political influence costs than is present in a hierarchy. The JV's incremental costs derive from shared sovereignty and incomplete contracting. The magnitude of those costs is related to parental differences, factionalism, and task interdependence in the top management team (TMT), and dynamism in the task environment. The costs are argued...