Interpretive Ranking of Choice of Interaction of Parent Firms Post-International Joint Venture Termination using TISM-IRP
Published on Mar 1, 2020in Global Journal of Flexible Systems Management
· DOI :10.1007/S40171-019-00227-4
International joint ventures (IJVs) have been explored in the extant strategic management literature from multiple facets. This study extends beyond the usual areas of research in the IJV literature and attempts to explore the interaction choice of IJV parent firms post-termination of their IJV. Using data on terminated two-partner IJV headquartered in India, we attempt to determine the ranking of choice of interaction post-IJV termination as supplier–buyer, complement, or competitor. Five factors have been considered in this study as antecedents to the choice of interaction post-IJV termination—type of IJV, cultural distance, bargaining power, industry regulation, and type of termination. The results suggest that each factor affects hierarchy of choice of interaction post-IJV termination distinctly and cumulatively influences the choice of complement interaction more than competitor interaction and supplier–buyer interaction. The change in relationship between parent firms from being in an IJV to an interaction post-IJV termination as supplier–buyer, complement or competitor can be attributed to the strategic flexibility of the organization. The paper explores a practical business phenomenon observed in emerging markets and establishes its theoretical foundation.