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Flexibility in Modification and Termination of Cross-Border Joint Ventures

Published on Jun 1, 2017in Global Journal of Flexible Systems Management
· DOI :10.1007/s40171-017-0153-9
Sanjay Dhir7
Estimated H-index: 7
(IITD: Indian Institute of Technology Delhi),
Sushil24
Estimated H-index: 24
(IITD: Indian Institute of Technology Delhi)
Sources
Abstract
Abstract The paradigms of transaction cost and social exchange are instrumental in developing joint venture research as well as its impact on flexibility of partners. However, extant research is scant regarding the type of flexibility that partners in joint venture are most impacted. In this study, we analyze the flexibility determinants in a sample of Indian cross-border joint ventures with G8 nations’ partner firms. The factors in the study as determinants of flexibility—termination flexibility and modification flexibility—are resource heterogeneity, trust, prior joint venture relationship, foreign equity, cultural distance, asymmetry in motives and foreign equity. We adopt a structural equation modeling approach for the study.
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